Do you read? Almost 27% of Americans have not read a book within the last 12 months. The only way to get ahead in life is to learn something new that you didn’t know yesterday. I am biased because I am a former educator and love reading, but please read. Read what you love and read something just to learn something new. Since this is a personal finance site, here are four personal finance books to read this summer.
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy was written by Thomas J. Stanley and William D. Danko way back in 1996. And even though this book is over a quarter of a century old, it features priceless financial lessons you should heed.
Stanley and Danko interviewed hundreds of millionaires in the 1980s and early 1990s to compile data for their book. In the 1980s and 1990s, the idea of being rich was an alien, unattainable concept to working-class people. TV shows of the era like Lifestyles of the Rich and Famous (the MTV Cribs of the 1980s) reinforced such notions.
Stanley and Danko’s book theorizes that popular culture misconceptions of wealth attainment and maintenance keep ordinary people from becoming rich. For example, what do you think of when you hear the word “millionaire?” Movie stars? Rap or rock stars? Tech moguls?
Wrong. Stanley and Danko say you should think “dentist,” “laundromat owner,” or “restauranteur.” The average American millionaire is worth anywhere between $1 million and $5 million. They live well below their means, don’t flaunt their wealth, and probably live next door to you.
Hence the title of the book.
Stanley and Danko stress that becoming wealthy is about assuming a responsible financial mindset. The millionaire next door drives a modest car and lives in a nondescript house. They live below their means, save money, invest, and work in business markets matched to their skills.
Stanley and Danko list seven factors you must follow to become a millionaire. Want to learn them? Then read this book. It’s one of the best personal finance books to read this summer.
Why Smart People Do Stupid Things with Money: Overcoming Financial Dysfunction
Why Smart People Do Stupid Things with Money: Overcoming Financial Dysfunction was written by Bert Whitehead in 2009.
Whitehead was once named one of the “Best 60 Financial Advisors in America” by Worth.
Whitehead’s premise in this book is that financial dysfunction, financial illiteracy, and bad financial habits keep you from realizing greater financial potential.
Do you fail to pay your credit card bills on time or in full? Failing to pay credit card bills on time or in full triggers penalty fees, paying extra fees at interest, and will adversely affect your credit history.
Do you save money? Are you in the habit of making near-unconscious impulse buys automatically? Instead of buying $4 cups of coffee at Starbuck, get a coffee maker and brew at home. Stop buying candy or paying for streaming/cable packages you don’t fully use. You can save a lot of money if you pay more attention to your spending habits.
Are you thinking about saving for retirement? Most Americans don’t make enough money to save for retirement or don’t save enough. And many more begin saving when it’s too late, and they are too old and end up working in retirement.
And that is the issue that Whitehead explores in his book, the psychological baggage that we create relative to our personal finances. According to Whitehead, most financial woes are borne from ingrained mental inclinations and less our bank account amounts.
Whitehead’s book offers several strategies and financial personality dysfunctions examples to help you become better at making and saving money. Put this on your list of personal finance books to read this summer.
Why Didn’t They Teach Me This in School?: 99 Personal Money Management Principles to Live By
Why Didn’t They Teach Me This in School? was written by Cary Siegel, a retired business executive in 2013. Siegel’s premise in his book is an interesting one, an idea that should be discussed in public schools – why is personal finance taught in school?
Only 4 out of every 7 Americans are financially literate or understand very basic financial concepts. That statistic is even worse on a global scale. Barely a third of the 7.7 billion humans on planet Earth understand basic personal finance topics.
Well, it’s never too late to learn about money if you didn’t learn about it in school. And Siegel does not judge you at all. Siegel originally wrote this book for his five children.
He realized that they had not learned personal finance basics or principles after graduating from school and college. So, as a former finance executive, he wanted to pass his experience and knowledge to them in the form of a book filled with his advice and tips.
The crux of Siegel’s book is that he passes on to the reader 99 money principles and 8 money lessons that will help you become financially literate. Siegel originally wrote this book for the benefit of his children, so you are bound to get helpful advice from it.
If you are looking for personal finance books to read this summer, put this on your list.
Spend Well, Live Rich: How to Get What You Want with the Money You Have
Spend Well, Live Rich: How to Get What You Want with the Money You Have was written by Michelle Singletary in 2004. Singletary is a renowned personal finance columnist whose columns appear in over 120 newspapers.
This book features 7 personal finance mantras that Singletary learned from her grandmother. Singletary’s grandmother taught her that if you have money, then you have options and choices in life. Singleton calls these personal finance lessons “7 Money Mantras for a Richer Life.”
I won’t tell you all of them, but I will tell you the first one:
- If it’ s on your ass, it’s not an asset!
If that doesn’t pique your interest, nothing will.
Singleton’s book offers no-nonsense advice on how to teach children about money, how to save money in a marriage, how to look for loans, and more.
This book is one of the most inspired personal finance books to read this summer. It won’t spare your feelings and will tell you what you need to know about taking care of your personal finances.
It’s kind of like a relative doling out tough love advice.
Personal Finance Books To Read This Summer (Read, Read, Read)
Read what you love. I love science fiction, espionage, and historical fiction. I am reading World War Z, a science fiction novel about zombies that inspired the 2013 Brad Pitt film.
I am also reading The Millionaire Next Door. I was originally tasked with reading it for an assignment, but I became entranced by it. The lessons must be adapted for the 21st century, but I was shocked by everything I thought I knew but didn’t about wealth creation.
Learn something you didn’t learn yesterday, especially when it comes to personal finance. Pick a book from this list and comment below after reading it.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.