The Top 5 Best First-Step Financial Books to Read in 2022
March 7, 2022
Managing finances can be a daunting task, especially if you’re just starting. There’s so much information out there that it can be hard to know where to start. But don’t worry, we’ve got you covered. In this blog post, we’ll be discussing the top five best first-step financial books to read in 2022. These books offer a great starting point for anyone looking to improve their financial literacy and take control of their finances.
From understanding the basics of budgeting to investing for retirement, these books cover a wide range of topics. So, if you’re ready to take your first step towards financial independence, keep reading to find out which books you should add to your reading list.
1. Why reading financial books is important for your personal finance
Reading financial books is an essential step in improving your personal finance. It doesn’t matter if you’re a beginner or an experienced investor, there is always something new to learn. Financial books provide you with a wealth of information on a variety of topics, such as budgeting, saving, investing, and retirement planning. They offer insights from experts in the field who have decades of experience in managing their finances and growing their wealth.
By reading financial books, you can learn how to make better financial decisions, avoid common mistakes, and achieve your financial goals. You can also gain a deeper understanding of the financial world, including the stock market, bonds, and other investment vehicles. With this knowledge, you can make informed decisions about your money and feel more confident in your financial future.
Moreover, reading financial books can also change your mindset towards money. Many books focus on the psychology of money, helping you understand your relationship with money, and how to cultivate a healthy and positive attitude towards it. This can be a game-changer in helping you achieve financial success and stability.
In conclusion, reading financial books is crucial to improving your personal finance. It provides you with practical advice, insights from experts, and can change your mindset towards money. No matter where you are in your financial journey, there is always something new to learn, and books are an excellent place to start.
2. The criteria for selecting the best first-step financial books
When selecting the best first-step financial books, there are a few criteria that we kept in mind that might help you as well. Firstly, it’s important that the book is beginner-friendly and easy to understand. The book should not be filled with technical jargon or complicated financial concepts that might overwhelm or confuse the reader. Instead, the book should be simple, concise, and easy to follow along.
Secondly, the book should cover a range of financial topics that are relevant to everyday life. This includes topics such as budgeting, saving, investing, and managing debt. It’s important that the book provides a comprehensive overview of these topics so that the reader can get a holistic understanding of their financial situation and how they can improve it.
Thirdly, the book should be up-to-date and relevant. The financial world is constantly changing, and it’s important that the book reflects these changes. This includes changes in tax laws, investment strategies, and financial products.
Lastly, the book should be well-written and engaging. It should be able to hold the reader’s attention and keep them interested throughout the entire book. The author should have a clear and concise writing style that is easy to follow and understand.
By keeping these criteria in mind, we’ve selected the top 5 best first-step financial books to read in 2022 that are perfect for beginners who are looking to take control of their finances and improve their financial well-being.
3. The top 5 best first-step financial books to read in 2022
Reading financial books is a great way to gain knowledge and insight into managing your finances. With so many options available, it can be overwhelming to choose where to start. Here are the top 5 best first-step financial books to read in 2022:
1. “The Total Money Makeover” by Dave Ramsey: This book takes readers through a step-by-step plan to get out of debt, build wealth and live a financially secure life.
2. “Rich Dad Poor Dad” by Robert Kiyosaki: This book challenges traditional financial thinking and encourages readers to adopt a new mindset towards money. It teaches readers how to build wealth through investing and entrepreneurship.
3. “The Automatic Millionaire” by David Bach: This book focuses on the power of automation and how small, consistent actions can lead to big financial gains over time. It teaches readers how to set up automatic systems to save, invest and build wealth.
4. “The Simple Path to Wealth” by JL Collins: This book simplifies the complex world of investing and teaches readers how to build a solid investment portfolio. It emphasizes the importance of low-cost index funds and a long-term investment strategy.
5. “Your Money or Your Life” by Vicki Robin and Joe Dominguez: This book helps readers shift their relationship with money and view it as a tool for achieving their life goals. It offers practical advice on how to reduce expenses, save more and live a more fulfilling life.
These books are great first steps for anyone looking to improve their financial literacy and take control of their finances. Each book offers a unique perspective and actionable advice that can be applied to real-life situations.
4. Book #1 – The Total Money Makeover by Dave Ramsey
The Total Money Makeover by Dave Ramsey is a classic personal finance book that covers a multitude of topics, from creating a budget to getting out of debt and building wealth. Dave Ramsey is a well-known personal finance guru and his book is a great first step for anyone looking to take control of their finances.
The book is divided into seven steps, each with practical advice and examples. Dave Ramsey emphasizes the importance of creating a budget and sticking to it, getting out of debt by using the debt snowball method, and building an emergency fund. He also covers topics such as investing, insurance, and retirement planning.
What sets The Total Money Makeover apart from other personal finance books is Dave Ramsey’s no-nonsense approach. He doesn’t sugarcoat the hard work that’s required to achieve financial freedom, but he also provides encouragement and motivation along the way.
Overall, The Total Money Makeover is an excellent first-step financial book for anyone looking to take control of their money. It provides practical advice, real-world examples, and a clear roadmap for achieving financial freedom.
5. Book #2 – The Simple Path to Wealth by JL Collins
If you are looking for a book that will guide you in achieving financial independence and retiring early, then “The Simple Path to Wealth” by JL Collins is the perfect read for you. This book is a great starting point, especially for those who have little to no experience in investing or managing their finances.
The author shares his personal experience and insights on how he achieved financial freedom by following a few simple steps. He explains the importance of investing in low-cost index funds and how you can benefit from this strategy in the long run.
One of the most interesting things about this book is that it is written in a very simple and straightforward manner, making it easy for readers to understand complex financial concepts. JL Collins uses simple analogies and metaphors to explain investment strategies and concepts, making it easy for readers to relate to and apply in their own lives.
Overall, “The Simple Path to Wealth” is an excellent read for anyone who wants to take control of their finances and create a secure financial future for themselves. The book provides practical advice and guidance that can be implemented by anyone, regardless of their financial situation or background. If you are looking for a first-step financial book that will set you on the right path towards financial freedom, then “The Simple Path to Wealth” is definitely worth a read.
6. Book #3 – The Richest Man in Babylon by George S. Clason
The Richest Man in Babylon by George S. Clason is a classic financial book that has been around since the 1920s and still stands the test of time. It’s a collection of parables set in ancient Babylon that teach simple financial principles that are still relevant today.
The stories revolve around the main character Arkad, who becomes the richest man in Babylon and shares his wisdom with others.
Clason’s writing style is simple and easy to understand, making it a great read for beginners who want to learn about personal finance.
The book covers important topics such as saving, investing, and managing debt. It emphasizes the importance of paying yourself first and living below your means. The principles taught in this book are not only applicable to personal finance but can also be applied to running a business.
One of the key takeaways from this book is the “Seven Cures for a Lean Purse” which includes advice such as setting aside 10% of your income for savings, investing in profitable ventures, and seeking advice from knowledgeable experts.
Overall, The Richest Man in Babylon is an excellent first-step financial book that provides timeless advice in an engaging and accessible way.
7. Book #4 – The Millionaire Next Door by Thomas J. Stanley and William D. Danko
The Millionaire Next Door by Thomas J. Stanley and William D. Danko is an excellent choice for anyone looking to improve their financial literacy. The book is based on a study conducted by the authors, which revealed that many millionaires live modest lifestyles and have a different approach to managing their money than the average person. This book is an eye-opener for readers who may have believed that millionaires spend their money lavishly on expensive cars, clothes, and vacations.
In The Millionaire Next Door, Stanley and Danko emphasize the importance of living below your means, budgeting, and investing for the long term. The book is full of practical advice and real-life examples of millionaires who have achieved financial success by following these principles.
One of the key takeaways from the book is the concept of “prodigious accumulators of wealth” (PAWs) versus “under accumulators of wealth” (UAWs). The authors explain that PAWs are people who have accumulated significant wealth by living below their means and investing wisely, while UAWs are those who struggle financially despite having higher incomes due to overspending and poor financial habits.
Overall, The Millionaire Next Door is a must-read for anyone looking to improve their financial situation and learn from the habits of successful millionaires. The book offers a practical and straightforward approach to managing money that anyone can follow, regardless of their income level.
8. Book #5 – Rich Dad Poor Dad by Robert Kiyosaki
Robert Kiyosaki’s classic, Rich Dad Poor Dad, has sold millions of copies worldwide and for good reason. This book is perfect for anyone who wants to start their financial journey and is looking for a little guidance. It’s an easy read, and Kiyosaki writes in a conversational tone that makes complex financial concepts easy to understand.
The book tells the story of Kiyosaki’s two fathers, one who was educated but struggled financially and the other who never finished eighth grade but became a successful businessman. The book is full of practical advice, including the importance of financial education, building assets, and finding ways to make money work for you.
One of the key takeaways from the book is the importance of investing in assets that generate cash flow, such as real estate or stocks, instead of liabilities that drain your finances, such as a fancy car or a big house. With Rich Dad Poor Dad, you’ll learn valuable lessons about money management and how to build up your wealth over time. It’s a great first step for anyone looking to take control of their finances and start building a better financial future.
9. Which book to choose based on your financial goals
When choosing a financial book to read, it’s important to consider your financial goals. Do you want to learn how to properly save and budget your money? Are you interested in investing in the stock market? Or are you looking to start your own business and want to learn about entrepreneurship? Whatever your goals may be, there is a financial book out there that caters to your specific needs.
For those looking to learn the basics of personal finance, “The Total Money Makeover” by Dave Ramsey is a great first step. It provides practical advice on how to get out of debt, save for emergencies, and build wealth for the future.
For those interested in investing, “The Intelligent Investor” by Benjamin Graham is a classic read. It teaches readers how to analyze stocks and make sound investment decisions.
If entrepreneurship is your goal, “The Lean Startup” by Eric Ries is a must-read. It offers valuable insights on how to build a successful business from scratch.
For those looking to gain a deeper understanding of the economy and financial markets, “The Big Short” by Michael Lewis is a fascinating read. It provides an inside look at the events leading up to the 2008 financial crisis and the individuals who profited from it.
Ultimately, the financial book you choose to read should align with your goals and interests. Investing in your financial education is a smart first step towards achieving financial freedom and success.