How To Stop Being Broke – 5 Must Read Personal Finance Books

I’ve found a common theme between people who’ve achieved success, and if you want to stop being broke it may be a good idea to follow these people. What I’ve noticed is that almost every single successful person reads. These people continually learn how to grow themselves and make themselves better. Whether it’s a book or an article, learning about how to better manage your finances is the first step.

I’ve noticed that people who are always broke always have terrible spending habits. These people know nothing about managing their money, and having their money work for them. I’ve read many books on how to do this, and I’ve come up with a list of my favourite books that show you how to better manage your money. Here they are:

1. The Wealthy Barber 

This is an interesting short read that tells you the story of how a small town barber was able to build extreme wealth. He shared the concept of paying yourself first, and the power of compounding interest. The idea of paying yourself first means that before you spend any of your money on food, clothing, or shelter, take 10% and automatically put this into your investment account. This money will take advantage of compounding interest, and 40 years from now will be worth a fortune. This is a very easy book to read and understand, but the concepts can be life changing.

2. Rich Dad Poor Dad 

This is one of my favourite books of all time, and it shares the difference between how rich people and the middle class manage their money. The main takeaway from this book is that “rich people buy assets, while the poor and middle class buy liabilities”. The rich buy assets, which means they buy things that put cash into their pockets over time. The middle class buy liabilities, which take cash out of your pockets.

The story in this book shares how Robert’s “poor dad” told him to go to school, get a good job, and buy a house, while his “rich dad” told him to start a business, create passive income, and invest your money. This is another easy to understand book, and it has tones of other helpful tips.

3. The Millionaire Next Door 

This book tells us what almost all millionaires have in common. You may think that it’s a nice house, or fancy cars, but that is actually not true at all. These common traits may surprise you, and a few examples and core examples would be: living below your means, manage your money effectively, and begin earning and investing early.

4. Money: Master The Game 

This book shares how even the average person can become a millionaire by investing long term. Tony Robbins shows us exactly what not to do and what to avoid, and also interviews the top investors of all time and gets their exact investment portfolio that you can imitate. A lot of people make the mistake of trusting so called “financial experts” to manage their money, but the truth is, these people aren’t looking out for your best interest. Instead, you can easily manage this process yourself and not have to pay for advice.

5. Secrets Of The Millionaire Mind 

This book shows you how to get your “money blueprint”. We learn that we must think like the rich do, and in order to do that we must change our psychology. This book shares it all, and gives us a simple formula on how to allocate your money to achieve the greatest financial success.

The hardest thing to believe is that the majority of these concepts are extremely simple and basic. But why then do so many people not follow them? By reading a few of these books, you will be on the fast track to financial success.

Once you get the hang of how to manage your money effectively, you will find that money will start finding its way to you. Instead of working for your money, you will have your money working for you, and this is a key concept to financial independence.

Pick up a few of these books and it will change your life.

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