My Favourite Personal Finance Books -

Many readers want to know that, Which Personal Finance Books I am fond of. They are surprised by me because I am a doctor and still I am running a Successful Finance Blog. And that’s why they want to know that which are my favourite Personal Finance Books?

Well, I have read several Personal Finance, Business, Investments & Entrepreneurship Books…. May be more than 150 or so. I have started reading Books on Money, Personal Finance, Business & Investments when I was in my 10th Standard (1998). And today after more than 10 years of constant reading on the subject of Money & Investing, I know almost all the aspects of Money & How it works. I am still learning this subject. I Like to learn new things about Money and How it works?

So Here are my few All time favourite Personal Finance Books.

01) Rich Dad Poor Dad -

I have first time read this book in May 2007 after completing my Graduation (MBBS). And this Book has changed my life by 180 degree. If you want to read only one Personal Finance Book in your whole of your life than this should be the one.

Many Personal Finance Bloggers & Advisors around this world don’t suggest this Book simply because they think that the Financial advises given in this book are extremely risky. Even though, this is a Personal Finance Category Book, it is not about Saving Money, Live Below Your Means, Investing in Mutual Funds, Diversify, getting out of Debt and retirement planning.

This Book is around the basic idea of How Rich Play the Game of Money. They don’t diversify, they don’t invest in mutual funds, they don’t live below their means, they don’t invest in real estate and hoping for capital gains, they don’t depend on the government system for their retirement and they take lots of Debt (Asset Producing Debt which is called a Good Debt in the book). But still they are rich and can afford all the luxuries of their lives.

Robert Kiyosaki, the fourth generation Japanese American is the author of this New York Times Best Selling Book. Many people say after reading this book that, If they had read this book 20 years before than today they would be much more rich and financially free.

The book starts as a story. In the Book, Robert’s highly educated real dad is a Poor Dad and his Best friend Mike’s Dad is a Rich Dad. Robert receives advises from both of his dads. But when it comes to Money, he follows the advises of his Rich Dad. When Robert saw a Luxurious Car, his poor dad used to say – My Son, We can’t afford this Car while his rich dad used to say – Son, Don’t think That I can’t afford this Car but instead think that How Can I afford this Car?

His Poor Dad Said, Son, Work Hard for Money while his Rich Dad said, Son, Learn to Make money work for you instead of you work hard for Money. The Book goes on and on…..

Many Personal Finance Gurus argue that, These are risky advises. But according to me, This is a MUST read Personal Finance Book.

02) Cashflow Quadrant -

Cashflow Quadrant is actually a continuation of the Rich Dad Poor Dad Book. This is also a MUST read book. This Book is all about changing the mindset. According to this Book, School teaches us to be Employees (E) & Self-Employees (S) while Rich people of this world are Business Owners (B) & Investors (I). According to this book, the school system is designed in such a manner that it can only produce E & S. It will never teach or motivate us to be B & Is.

And this is the reason when we enter into the Real Life, We find Business & Investment Risky. Because all we have learnt from our school about Business & Investments is that, It is Risky. But in reality, Not Having a Business & Investments is Risky. You observe this phenomena. If today you are doing a job than who is more safe and secure? You or your school drop out Friend who started his own Business & done Investments?

03) Guide To Investing -

This is also a continuation of Rich Dad Series Books ‘Rich Dad Poor Dad’ & “Cashflow Quadrant”. This Book will teach you the power of Corporate Structure & Various Corporate Strategies that Rich use in their favour to get richer and avoid taxes.

How Rich people create wealth in the economy by developing a successful Business and taking it to the public is the main theme of this Book.

04) The Intelligent Investor by Benjamin Graham -

After Rich Dad Series Books, This is my next all time favourite book. There are thousands of Books on Investments in this world but none of those is as effective as this. In fact, Fund Managers & Investors read this Book.

This is the Basic & Life Changing Book of Warren Buffet, The Second Richest Person (2009) of the world & The Legendary Investor of the Century. According to Warren Buffet, He has made his fortune by following the Investment principles of this Book. He read this Book 50 years before and still today he follows the principles of this Book.

This is my favourite Book also. Chapter 8 & 20 of this Book are very important.

05) Living the 80/20 Way -

This is another great & a MUST read book. This Book is based on 80/20 principle means you should put 80% effort on those 20% things in your life which are going to give you 80% results.

Chapter 6 – Unmask the Mystery of Money of this Book is a MUST read chapter. This chapter really unmasks the mystery of money. The author has logically proved in this chapter that why 20% people of this world own 80% of the Total wealth and rest 80% people share just 20% of the Total wealth?

The Chapter has also explained that Why because of the compound Interest, Money gets concentrated in few hands.

06) The Millionaire Next Door -

The Millionaire Next Door book is all about a Typical Millionaire of USA. Most of the people in this world think that, you can become a Millionaire by spending a lot, buying expensive cars, watches & clothes. But in reality, according to the study & analysis of Millionaire families in USA by the authors of this Book, Typical Millionaires in USA are not those who spend more but who Save and Invest more.

A Typical Millionaire of USA drives a second hand car because he don’t believe spending money behind depreciating items rather than he will invest that money in some Assets.

The Whole book is about the real life style of a Typical American Millionaire. This Book will change a picture of a Millionaire from your mind. This is perhaps a Best book on Frugality.

07) Richest Man in Babylon -

This Book is all about the principles of Gold (Money) from the Babylon around 8000 years back. Babylon was the richest city of this world in ancient times. And the Richest man of Babylon had 5 principles of Gold that are still effective today. One Archeologist found these principles on a Clay tablets during his research work on ancient Babylon.

08) Total Money makeover by Dave Ramsey -

Dave Ramsey is a Personal Finance Guru & Educator in USA. his book Total Money Makeover is mainly around the idea of reducing debt, getting out of debt and stay away from Debt.

Here are some quotes from Dave Ramsey from the Book -

"A new $28,000 car will lose about $17,000 of value in the first four years you own it. To get the same result, you could toss a $100 bill out the window once a week during your commute."

"Looking to spend $100 per month on life insurance? You could pay $7 a month toward term insurance and invest the remaining $93. But go with a cash-value policy if you'd rather have someone else earn interest on your investments."

"49% of Americans could cover less than one months' expenses if they lost their income."

"If your mortgage payment is $900 and the interest portion is $830, you will pay that year around $10,000 in interest. What a great tax deduction! Right? Otherwise, you'd pay $3,000 in taxes on that $10,000. But who in their right mind would chose to trade $10,000 for $3,000?"

All of this advice is helpful and eye opening,