Nurses spent a lot of time, money, and energy studying and getting their degrees so they can find a good job. I did the same thing. After spending so many years preparing for my career, I realized one day that I should spend some time learning how to manage the money I make. I opened a 403(b) plan through work and contributed regularly yet didn’t know how to invest within the plan. I wanted to reap the benefit of my hard work and live abundantly one day but didn’t know how to get there. Consequently, I started studying through reading one book at a time. These are the 6 best finance books that helped me achieve financial freedom.
Book #1
Think and Grow Rich by Napoleon Hill
The reason this is listed as #1 under 6 best finance books is because the first step to becoming financial free is to develop a “rich” mindset. That is to say that you have to first think you can be rich. When you come from a modest background without any rich role models to emulate, it’s hard to convince yourself that you can be rich. Napoleon Hill outlines 13 principles to think and grow rich. These principles include: desire, faith, and persistence. It was written in 1937 but is still timely. It is a book you can read each year and learn something each time you read it.
Book #2
I will Teach You to Be Rich by Ramit Sethi
The second reading under the 6 best finance books is a comprehensive book on personal finance. You will learn banking, budgeting, saving, and investing to make your money grow. Index Fund anyone? You will learn how to invest without spending thousands of dollars on financial advisors. In addition, he has the best definition and description of frugal versus cheap. I got the confirmation that I’m frugal, not cheap. Finally, with light heartedness and humor, Ramit makes his book an easy read.
Book #3
The Truth About Retirement Plans by Ric Edelman
I am a long-term fan of Ric Edelman, who is a financial advisor. He’s written number of books but I found this one of the 6 best finance books I read. It is a must read for anyone who has a retirement account. If you have any money in a company sponsored retirement plan (which most nurses do) and don’t know how to invest it within the fund, Ric will teach you how to do it. The highlights include:
- How to invest the money within the retirement fund
- What to do with the money when you leave your work
- Where and how to park your savings to maximize your earnings
- How to withdraw the required minimum distributions (RMDs)
Book #4
Set for Life: Dominate Life, Money by Scott Trench
On the spectrum of early to late career, this book I chose as one of the 6 best finance book is intended for someone who seeks to become FIRE (Financially Independent Retire Early). He outlines what you have to do first to become financially free. You accumulate $25,000 through frugality. Decreasing highest expenses such as housing, transportation and food will allow you to save more. Turn housing into an income-producing asset by house hacking with a goal of saving $100,000. Finally, you take $100,000 to create a passive income stream to ultimately become financially free. The concept is simple and totally doable.
Book #5
The Millionaire Next Door by Thomas J. Stanley and William D. Danko
These two authors conducted an intense research by interviewing millionaires. They found that the millionaires were middle-class. The millionaires they interviewed did not drive fast cars or live in large mansions. Rather, they achieved their wealth by budgeting, saving, and planning for their future. Their findings in the reading considered in the 6 best finance books will surprise you and inspire you at the same time. You will be convinced that anyone can become a millionaire and that they live amongst all of us. Are you a millionaire next door?
Book #6
Rich Dad’s Cashflow Quadrant: Guide to Financial Freedom by Robert Kiyosaki
In the final but not the least important in the 6 best finance books, you’ll learn the difference between an employee, a self-employed, business owner and an investor. If you think that it’s doctors and attorneys who make high income win the race, you would be dead wrong. This book reveals which category you should strive to make the most of your potential. It is a complete different mindset that is worth adapting.
Common Themes
Out of many books I read over the years, the lessons I learned from these 6 best finance books had the most impact on me. They are:
- Learn the basic steps of personal finance and the road to financial freedom. You can’t read a novel until you learn the alphabets. You can’t save money until you learn how to budget, pay down your debt and make a plan.
- Develop the mindset to become “rich”. It is the first step to financial freedom. You can learn anything now days through the Internet. Why not learn to dream big, set goals and become what you want?
- Take risks. If you live like an average person, you will end up being average. That is, to retire with less than $100,000 in your retirement fund, and worry constantly whether you’ll run out of money before you die. Make bold financial moves, invest in yourself and grow your wealth.
- Be actively patient. The road to financial freedom takes time. With hard work and diligence, you will get there.
What’s the best finance book you’ve ever read?