Some links in this post contain affiliate links. I can’t stress this enough. You have to invest in your education.
Even if you don’t plan on actively managing your retirement accounts you need to understand what is going on. How markets work, how investment vehicles are built, and how your strategy is going to get you to your end goal.
It can be scary knowing which investments to make and which strategy is best for you.
One way to get over that fear is to read books and become financially literate. Most millennials are not taught the basics of personal finance in school. It’s up to you to educate yourself so you can make sure you are financially set later on in life.
So with that, I will share with you some of my favorite books that helped me level up my personal finance knowledge.
The Total Money Makeover
Dave Ramsay is the poster child of personal finance. He has a very strong opinion of what your investing strategy should be. He promotes keeping consumer debt to a minimum (if not $0) and only buying things in cash because that means you can afford it.
Whether you agree or disagree with Dave Ramsay this book is an excellent starting point to refine your personal finance thinking and help you get over the feeling of doom and gloom with your student loan and credit card debt.
I would recommend this book to anyone starting their personal finance journey and to help them wake up and realize that car debt and credit card debt was designed to keep you from accomplishing bigger goals.
One Up On Wall Street by Peter Lynch
Peter Lynch was a highly respected hedge fund manager who accumulated a ton of wealth for himself and his clients. If you are interested in buying stocks then this book is a great read.
There are better books out there for learning stock strategies but this is the best that I have found for explaining some simple principles when first starting to invest.
For instance, Lynch suggests that it is critical to understand what the company does, how it makes money, and who is in charge of it before you start investing in it.
You can learn the more complicated metrics of a companies health later. But first things first, establish a good foundation of how to value a company. Peter Lynch gives you some practical tips on finding the next big stock through fun stories about his time managing billions of dollars on Wall Street.
The One-Page Financial Plan
Walk before you crawl. It is very easy to get overwhelmed with personal finance. You may feel hopeless with the amount of debt you have and can’t see the light at the end of the tunnel. It can be frustrating reading blogs (like this one) that offer practical tips but you are stuck thinking “great, but that won’t work for me in my situation.”
Carl Richard’s book “The One-Page Financial Plan” is a great read for personal finance beginners because he breaks down how to come up with a plan based on goals, conversations with your spouse, and a comprehensive look at how money can help shape your future. He does this by sharing stories of his time as a financial planner and walks you through different exercises to get more clear on your goals and come up with a plan that will actually meet those goals.
The Richest Man In Babylon
Fair warning this book was written in 1926 so the style of writing is a little old school. But if you can get past that there is a wealth of knowledge in this book.
I recommend this book to nearly everyone I talk to about money. I love the way the principles are presented in this book.
The author, George Clason, takes us back in time to the richest civilization to ever exist on Earth. He breaks down how the wealthy elite was able to build wealth with simple rules.
The best part?
The rules still apply today. I actually have them printed off and on my wall.
Check this book out and you will already be following rule #7 “Increase thy ability to earn.”
Wrapping It Up
These are some of my favorite books for millennials looking to educate themselves on personal finance and investing.
I have read a lot more books that get into more technical aspects of investing and strategy but these are great for getting your feet wet and helping you understand the basic principles of investing. From here you can go in any direction and have a healthy understanding of how paying off debt and investing your extra income will get you where you need later in life.
Did I miss a book that is a must read? Leave a comment below and let me know
About The Author – Alex
I am on a journey of personal growth. I love learning about investing strategies and ways to actively improve my life. Follow along and connect with me if you are looking for a path to financial freedom and becoming the best version of yourself.