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The 11 coveted finance books for beginners to live the life you wantI think you’d agree with me when I say that most people would love to escape their 9-5 to do something they really love instead. The problem, is that while many want to escape the daily grind, knowing how to go about it is the challenge. It wasn’t until I discovered the financial independence and early retirement communities that I realized there was an alternative path. Then, I believed I’d have to work until 70 before I could think about retirement.
In this post, I’m sharing the 11 best finance books that deserve a spot on your bookshelf to help you build insane wealth.Heads up: This post may contain affiliate links. Check out my disclosures for more info.
Financial Independence and Early Retirement Books
TacticalThese tactical books show you exactly what you need to do to pay off debt, save money and invest.
1. Total Money Makeover
2. Simple Path to WealthWant to avoid the hundreds of thousands in investing fees some investors pay investment firms? Enter “The Simple Path to Wealth” by JL Collins. This book changed everything in the stock market investing world by demystifying investing in total market index funds. He shares why most investment management companies cannot predict funds that outperform the basic S&P 500 index. Despite this track record, investors pay high fees to attempt to “beat the market.” Few investment managers, Warren Buffet is one, actually do beat the S&P. For the average investor to pick an investment manager who beats the S&P is quite uncommon, according to Collins. Knowing this, Collins proposes cutting out the middleman, investment management companies. This frees up your cash to invest in funds such as Vangard’s Total Stock Market Index fund (VTSAX) which is one of the lowest cost total market funds in the investing world. Packed with logical data for his arguments, Collins shows you how to achieve better returns than most investment managers. You’ll finish this book and wonder why it wasn’t around 20 years earlier, at least!
3. Bogleheads Guide to InvestingIn the modern world of investing, Jack Bogle noticed a problem. The structure of too many investment management companies didn’t align with the interests of the investors, like you and me. Bogle thought investing fees charged by many mainstream investment companies drag down the growth potential of our hard-earned dollars. So, Bogle set out to create a company that focused on you, the investor. The company he founded is Vanguard. Known for rock bottom investing fees, Vanguard fundamentally changed the way investors build wealth by avoiding fees. He explains well why fees destroy growth in his book “Bogleheads Guide to Investing.” It’s slightly more complex of a read than The Simple Path to Wealth, but still worth reading. I particularly liked the section that suggests investment ratios based on age. Knowing this information can help you develop a personalized investing strategy giving you some peace of mind over your future.
PracticalThese practical reads show you how to optimize your life with actionable, money-saving tips.
4. The Year of LessCait Flanders wrote “The Year of Less” as a young 20-something. She shared some of her struggles with alcoholism, her parent’s painful divorce, and job dissatisfaction, among other challenges. When her little sister shared she saved more than her, Cait wondered something. Instead of setting minimum savings goals, she wondered how little she could spend. Cait experimented with this idea by going on a shopping ban for 365 days. She ridded her closets and home of 70% of her belongings and realized that life is much happier without stuff. In the process, she paid off $30,000, earned her sobriety, decided to work for herself, and learned to work through hard emotions. This book was a powerful reminder that buying things to solve your life problems isn’t always the solution. Modern marketing rampantly describes the things you need RIGHT NOW to fix whatever painful experiences we have on the inside. Cait debunks the myth that stuff will fix your life in a beautifully written memoir. It’s a poignant reminder that opting out of the need-it-now culture is a step toward clarity and resilience. She’s a wonderful reminder why the path to paying off debt and reaching financial independence is more than dollars and cents.
5. How your House Works
- Air Quality
- Windows and Doors
- Foundation and Frame
- And more
6. The Complete Tightwad Gazette
FanaticalThese fanatical books are perhaps the greatest classics of the financial independence movement.
7. Millionaire Next Door
- Most Millionaires did not inherit their wealth
- They drive American made cars and wear inexpensive suits
- They save at least 15-20%+ of their income each year and make their own investing decisions
- They have a F U fund that lasts at least 10 years
- They are classic “tightwads”
8. Richest Man in Babylon
9. Your Money or Your Lifefinancial independence movement known today. Robbins writes about the limited hours we have in each day to life our life. She equates the cost of items we buy in life to cost hours out of our life. A fru fru coffee drink might cost 15 minutes of your life. A $20,000 car might cost half of one year’s work. No matter the costs, humans pay for items by giving up hours of their life. Robbins encourages readers to choose wisely how they spend their precious life minutes. I always think of Robbins’ wisdom when asking myself if I want a fancy piece of clothing. Often times, my life minutes aren’t worth the item!
Business BuildersCreating a side hustle can help launch your career and give you an exit strategy for the future. These books show you how to do it the right way.
10. EntreleadershipEntreleadership shows how Dave Ramsey built his multimillion dollar business from a card table in his home. The book shares leadership tips for those within a business and those who want to become business owners one day. Dave is a no-nonsense writer and is a master motivator in describing why integrity and responsibility are important business values to uphold. The book’s framework can you set up a business that serves others while earning profits and matching your personal values.
11. Pinteresting StrategiesDid you know the average millionaire has multiple income streams? Pinteresting Strategies is written by Carly the blogger from Mommy on Purpose. Pinteresting Strategies will tell you exactly how to add mostly passive income to your online business through Pinterest. She shows how she’s promoted her blog and earned hundreds of thousands of page views using Pinterest. Those page views can result in funding your retirement plan 100%. The book shows in detail how to
- set up a Pinterest account the right way
- how to pin content that serves the Pinterest audience well, and
- how to increase engagement
BONUS: Making Sense of Affiliate MarketingMaking Sense of Affiliate Marketing is a text-based course that teaches how to monetize your website using affiliate links. The course has 6 modules and shares how Michelle grew her Making Sense of Cents blog to earn over $1 million each year. I wrote a more detailed review of her course in my Making Sense of Affiliate Marketing Review. Michelle has mastered earning income in a digital world and shares this through her course. This is a great course to pave the way to being financially independent and/or retired early using a business with an online presence. Learn more about the Making Sense of Affiliate Marketing course.
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