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Writer's pictureAniston Antony

Top 10 Financial books to read in your early 20’s

This is a high time we learn about the importance of financial stability in our life. More than 3rd of the Americans cannot come up with $400 in case of an emergency while most of the lower-class Americans spend $400 a year on lottery tickets. Most of us think of savings in our bank account, it is now high time to think about appreciating assets and the goal towards financial independence. Let’s explore the top 10 books which will guide you towards your Financial Freedom.


1. The Richest Man in Babylon



Author: George S Clason

Published: 1926

Pages: 156

Dimensions: 20 x 14 x 4 cm



The book takes us back to the age of the people in Babylon. The way people lived at that time, how they managed their financials and how the rich kept growing. We learned the parables of the Babylonian empire through scripts in cuneiform which was used for trade and communication. It tells us to first pay for ourselves (1/10th of our earning) before we spend on other items. It tells us about the idea of wealth and income and how being wealthy is not a good sign no matter whichever position your in. The author stresses on the point of putting your hard-earned money to work and think on the level of passive income and ideas to generate wealth through passive income.


2. Think and Grow Rich



Author: Napoleon Hill

Published: 1937

Pages: 225

Dimensions: 7.8 x 5.1 x 0.7 cm



“Clarity is power. When your brain knows a real number, your conscious mind will find a way to take you there”. No matter which tracks you choose to follow in order to get rich, becoming a trader, investor, real estate, entrepreneur- you must have a correct mindset. The author urges to think riches in your thoughts in order to see riches in your bank account. The burning desire to see riches and achieve your dream will push you through any boundaries. “If you do not conquer self, you will be conquered by self”

himself.


3. Your Money or Your Life



Author: Vicki Robin

Published: 1992

Pages: 368

Dimensions: 2.03 x 12.7 x 19.3 cm



To learn to stop with enough, keeping in mind that more money doesn’t bring more happiness. Start to calculate your net worth having laid down your assets and liabilities. This can bring out a new insight to access your financial health and where to head to your future financial decisions. The author tells to see money as energy, the amount of energy you spend directly bring in the money and see the items you bring in terms of your life energy spend. Keep a track of your income and expenses through a chart or excel or any means necessary. This will be the starting of your financial journey.


4. The Millionaire Next Door



Author: Thomas J Stanley

Published: 1996

Pages: 273

Dimensions: 14.92 x 2.01 x 23.01 cm



The book gives a quick characteristic of a millionaire and his lifestyle. He also depicts how we can copy that and start with those habits in our daily routine. Rather than spending money on luxurious goods and services, we need to focus our attention on spending the money wisely through appreciating assets. Time and energy are finite resources, so utilize wisely. Becoming a millionaire is a life decision of planning, execution, hard work and everything putting into a disciplined path. And always remember your accumulated wealth should be yours and should not be a result of your parent's hard-earned money.


5. Rich Dad Poor Dad



Author: Robert T Kiyosaki

Published: 1997

Pages: 336

Dimensions: 10.67 x 2.79 x 17.02 cm



This is one of the best personal finance book one can read. Robert growing up with his own Dad which he calls poor Dad and with his friend's dad whom he calls Rich Dad. He compares the two on financial terms and tries to learn good advice from both. Poor Dad being focused majorly in liabilities, loans, debts while Rich Dad focussing on assets to build up his empire. He clearly defines the difference between assets and liabilities with brilliant examples. The book has been in the run for over 2 decades and the latest 20th-anniversary edition includes some keynotes from the Author


6. The Automatic Millionaire



Author: David Bach

Published: 2003

Pages: 240

Dimensions: 18.8 x 1.52 x 23.14 cm



The book insights with 3 life-changing rules for a better financial health. The Author tries to divide your daily schedule of work and segregate those down you spend into taxes, transportation, rent/mortgages, hospital bills, savings, etc. But the idea is to spend for yourself first, spend hours to yourself and to grow yourself. Saving a little chunk of your hard-earned money each day can take you a long way into success. And automating these tasks will keep you disciplined in investing for years in yourself as well as for your financial life.


7. The Compound Effect



Author: Darren Hardy

Published: 2010

Pages: 208

Dimensions: 19 x 13.5 x 0.5 cm



The book mainly focuses on how making small choices alone can impact your life. He explains the wonder of compounding through the penny magic example. But making small choices also comes with the risk of “Oh, it's a small thing, I’ll make it up for tomorrow”. We need to own 100% of our responsibilities and the things we do. Keep putting your brain with new information all the time to keep it active. Another great idea is the “garbage in garbage out” which tells about the negative things we take in and how our life turns to be negatively out.


8. Money Mastering the Game



Author: Tony Robbins

Published: 2014

Pages: 688

Dimensions: 13 x 4.3 x 19.6 cm



He explains the game of mastering money similar to mastering the jungle with predators all around. The predators are taxes, fees, brokers, volatility, etc. He interviews the money masters such as Carl Icahn, Paul Tudor Jones, Kyle Bass and Ray Dalio to bring up this amazing book and learn from these masters. He aims to climb the financial mountain with ease and points out different base camps along the way. One of the major points is to change your life and lifestyle in order to learn more, earn more, save more, invest more and finally reach your goal faster. Remember to have an all-season portfolio: not only does it protect you from any potential economic environments, but it also protects you from yourself.


9. From Rat Race to Financial Freedom



Author: Manoj Arora

Published: 2016

Pages: 286

Dimensions: 13.97 x 1.85 x 21.59 cm



This is a great book for the people who are just starting out their financial life. There isn’t any technical jargons and the language used here is very simple to understand. It tells how everyone is trapped in the mindless rat race and none has time for anything else. The author plans to resolve this problem and take control of your finances, quitting the run behind the rat race. The book gives insights into becoming a conscious being and to lead an independent life.


10. The Psychology of Money



Author: Morgan Housel

Published: 2020

Pages: 203

Dimensions: 20 x 14 x 4 cm



The books start with the Janitor who had 8 million in his savings account when he died. Saving over time and letting the wonder of compounding do overtime. Morgan emphasizes that one can become rich just by behaving in the right attitude towards money. There is always someone with higher financial status than you, the goal is to compare your present self with your past self.

Financial success is not a hard science. It's a soft skill where how you behave is more important than what you know
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