Most people are unfortunately not very educated on how to manage money. All the different IRS definitions and different tax qualifications can be confusing, and fewer people still know how to manage their money in a general sense through their day-to-day life.
Here are 8 of our favorite books on how to manage your money.
Dave Ramsey is the host of the popular radio program the Dave Ramsey show and has written 5 best-selling books. The Total Money Makeover covers different strategies for handling financial stresses like marital bills or paying for your kids’ college. The book is not about getting rich quickly but how to smartly handle your money to manage debt risk.
Publisher: Thomas Nelson; 1 edition (September 17, 2013)
Customer Reviews: 4.7 out of 5 stars6,767 customer ratings
Amazon Best Sellers Rank: #458 in Books (See Top 100 in Books)
Vanderkam’s book is a bit different from other financial help books. All the Money in the World is not necessarily about how to be frugal and save money, but how to squeeze every last bit of value out of the money you spend. The key idea is that you should spend your money in a way that promotes and lets you live your values. Identifying the things you value helps you more smartly spend your money.
Publisher: Portfolio; Reprint edition (May 28, 2013)
Customer Reviews: 3.7 out of 5 stars41 customer ratings
Amazon Best Sellers Rank: #98,664 in Books (See Top 100 in Books)
Moving on, you might have been asking yourself this question: what is the best book for managing money? The answer to that is the next book on our list:
One problem a lot of people have with managing finances is simplifying everything into a comprehensible plan. Richard’s book is focused on how to streamline your financial planning process and make it simpler to manage overall. The key concept of the book is that it is your financial behavior, not luck or insight, that determines your financial success or failures.
The best book on managing money is the One-Page Financial Plan. The simple examples and no-nonsense layout are easy to follow and can help you simplify your finances to make managing money much easier.
Hardcover: 224 pages
Publisher: Portfolio; 1st edition (March 31, 2015)
Customer Reviews: 4.2 out of 5 stars269 customer ratings
Amazon Best Sellers Rank: #117,813 in Books (See Top 100 in Books)
AS the name implies, Broke Millennial is geared towards 20- and 30-something-year-olds who need help get their finances on track. Broke Millennial demystifies the workings of personal finances and promises to help you go from “flat-broke” to “financial badass.” A major appeal of the book is how it uses real-life common experiences to explain more abstract financial planning concepts. Examples cover the gamut from paying student loans to simply splitting the dinner bill with friends.
Publisher: TarcherPerigee (May 2, 2017)
Customer Reviews: 4.7 out of 5 stars247 customer ratings
Amazon Best Sellers Rank: #17,127 in Books (See Top 100 in Books)
What book should you read to get rich?
If you want to figure out how to get rich, then you should read The Millionaire Next Door. The book is all about how to accumulate wealth. Despite what you might think, Danko & Stanley’s research into the wealthy finds that most wealthy people became that way by being frugal and saving as much money as possible. The Millionaire Next Door explains how you can amass a sizable fortune without needing a flashy degree or super high-paying job.
Danko and Stanley offer a wonderful guide on how to invest and save like crazy to get as far ahead as possible and quickly as possible. Through a combination of grit, discipline, and determination, the authors show how you can build up a sizable fortune in a modest amount of time.
Publisher: Taylor Trade Publishing; Reissue edition (November 16, 2010)
Customer Reviews: 4.5 out of 5 stars3,545 customer ratings
Amazon Best Sellers Rank: #2,080 in Books (See Top 100 in Books)
Set for Life is entirely focused on how a person can go from having no assets to a point where work is optional is the shortest possible amount of time. Trench argues that the traditional American dream is actually built on debt and that young people desire to live life on their own terms as quickly as possible. His advice is not that people should just work hard and get as much money as possible, but that one should tailor their values and life expectations to figure out how they want to spend their time and money.
Series: Financial Freedom (Book 1)
Publisher: BiggerPockets (April 23, 2017)
Customer Reviews: 4.6 out of 5 stars407 customer ratings
Amazon Best Sellers Rank: #82,448 in Books (See Top 100 in Books)
Siegel’s book Why Didn’t They Teach Me This in School is a great graduation gift for recent graduates about to chart off on their own in the world. The book contains 99 useful money managing lessons to help people manage money smarter. The book seeks to fill the void that the lack of personal finance classes in school leaves behind.
Publisher: CreateSpace Independent Publishing Platform; 2.4.2013 edition (March 6, 2013)
Customer Reviews: 4.3 out of 5 stars504 customer ratings
Amazon Best Sellers Rank: #13,571 in Books (See Top 100 in Books)
Collins’ book is designed especially for investors and those who want to retire early. The book originally began as a collection of letters by the author to his daughter providing financial advice and investing tips useful for all walks of life. The prose is accessible and fun but also not hesitate to indulge in some complicated examples. It has been very highly rated and featured in several notable publications.
Publisher: CreateSpace Independent Publishing Platform; 1 edition (June 18, 2016)
Customer Reviews: 4.8 out of 5 stars1,290 customer ratings
Amazon Best Sellers Rank: #1,508 in Books (See Top 100 in Books)
So, what is the best way to manage money?
The best way to manage your money is by saving and investing. Saving money gives you a cushion to fall back on in case things go poorly and investing is a way to grow your already-existing wealth.
Most wealthy people don’t get that way because they have extremely high paying jobs but because they smartly invest, spend wisely, and don’t live outside their means.