If you’re just getting started in the world of personal finance, then you’re in luck. This article covers 11 of the best finance books for beginners, including topics like saving, investing, budgeting, and heaps more.
It’s never too late to start learning about finances, so don’t worry if you’re young or old; at least you’re now taking steps to learn!
These books are from those who know the ins and outs of personal finance and will help you get on track.
Again, these books are for beginners, so they skip all of the complex terms and phrases that you may not be familiar with. Here’s another list of the best finance books for young adults if you want books that are a bit more complex.
Without any more explaining, let’s jump straight into the roundup of the 11 best finance books for beginners in 2022.
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The Best Personal Finance Books
Here’s the entire list of best finance books for beginners; they’re all explained more thoroughly below.
- “A Beginner’s Guide to The Stock Market,” by Matthew R. Kratter
- “I Will Teach You to Be Rich,” by Ramit Sethi
- “The Simple Path to Wealth,” by J L Collins
- “Your Money or Your Life,” by Vicki Robin
- “The Richest Man in Babylon,” by George S. Clason
- “The Millionaire Next Door,” by Thomas J. Stanley
- “Think and Grow Rich,” by Napoleon Hill
- “Why Didn’t They Teach Me This in School,” by Cary Siegel
- “The Wealthy Barber Returns,” by David Chilton
- “Broke Millenial,” by Erin Lowry
- “Investing For Dummies,” by Eric Tyson
11 Best Finance Books for Beginners
A Beginner’s Guide to the Stock Market, Matthew R. Kratter
If you’re looking for an easy beginner’s guide to the stock market, then this is the ideal book for you. Kratter explains the benefits and risks of investing in stocks, using an online broker, and finding information on different companies.
Many beginner stock traders end up getting scammed by schemes or ideas that promise easy wealth. This book opens your eyes to these offers and tells you how to avoid them.
The only downfall is its length (79 pages) and how it doesn’t get into the specifics of trading itself. Apart from that, if you don’t have time to read several hundred pages of an investing book, you should check this one out. It gives you an excellent introduction to the world of personal finance and is an easy read.
Best quote: “I skate to where the puck is going to be, not to where it has been.”
I Will Teach You To Be Rich, Ramit Sethi
Ramit Sethi’s book is a powerful tool for anyone looking to manage their money better. Sethi is a popular finance blogger who writes on how to get the most out of your bank accounts and investments.
Skipping all of the complicated terminologies, he lays out a plan of how people can enjoy their finances without feeling guilty.
It’s all about living within your means and not wasting money on unnecessary things, but still spending money on things that matter most to you.
He proposes readers follow a plan of Conscious Spending rather than a budget. This plan will help you save for yourself and also buy things for yourself without feeling guilty.
If you’re planning on reading only one book on this list, I’d highly recommend reading this one.
Best quote: “Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t.”
The Simple Path to Wealth, J L Collins
The Simple Path to Wealth does an excellent job of explaining the power of investing in index funds and how they can be helpful to build wealth over time. Collins also teaches you about saving more money, making more money, and the 4% rule.
This is a fantastic finance book for beginners, as complicated financial concepts are explained in an easy-to-understand format, so it feels like you’re reading from a friend rather than a technical writer.
It’s also ideal for someone who wants to invest but doesn’t know how or when to start.
Best quote: “It’s not hard. Stop thinking about what your money can buy. Start thinking about what your money can earn. And then think about what the money it earns can earn.”
Your Money or Your Life, Vicki Robin
Vicki Robin’s and Joe Dominguez’s book takes an exciting approach to finance and isn’t your regular ‘finance book.’ They explain the truths about our society’s materialistic mindset and how it can lead us to an endless cycle of work, debt, and consumption.
Rather than following the pack, they teach you how to break free from this cycle, focus on a simpler life, and use the money for freedom.
While it isn’t explicitly related to finance, and the investing advice isn’t the greatest, it discusses how people see their lives in terms of paycheck rather than time. Most people spend more time earning a wage than actually living their lives.
This book gets you thinking about your money in terms of hours worked and shows you that your main asset in life is actually your time, not money.
Best quote: “Money is something you trade your life energy for. You sell your time for money. It doesn’t matter that Ned over there sells his time for a hundred dollars and you sell yours for twenty dollars an hour. Ned’s money is irrelevant to you. The only real asset you have is your time. The hours of your life.”
The Richest Man in Babylon, George S. Clason
Another one of the best finance books for beginners is ‘The Richest Main in Babylon.’ It’s a classic book that shows the power of saving and investing but may be deemed “old-fashioned” by some.
However, I still think it remains as relevant today as written in 1927, purely because of its timeless advice.
It’s a short book that’s easy to comprehend and shows you the actual value behind money, so you can finally move past your emotions about spending and saving and become financially free.
The book also teaches you about investing 10% of your earnings for your future self, controlling your expenses, and investing wisely.
While the principles are basic, they’re great advice for anyone beginning their financial journey.
A good quote: “A part of all I earn is mine to keep.’ Say it in the morning when you first arise. Say it at noon. Say it at night. Say it each hour of every day. Say it to yourself until the words stand out like letters of fire across the sky.”
The Millionaire Next Door, Thomas J. Stanley
Written in 1996, ‘The Millionaire Next Door’ examines the common characteristics of wealthy people and how the rags-to-riches stories don’t reflect reality.
Stanley explains through years of research that the rags-to-riches individuals are of an extreme minority. Instead, many successful people are millionaires through frugal living, saving money, and building wealth over time.
The book explains that if you’re wise and frugal with your money and invest it correctly, you too can become rich.
It’s an excellent read for people who might be struggling with motivation or asking themselves, “why should I bother when someone will always earn more?”
The book demonstrates how people become millionaires without flaunting their wealth and how they often lead modest lifestyles.
Best quote: “Many people who live in expensive homes and drive luxury cars do not actually have much wealth. Then, we discovered something even odder: Many people who have a great deal of wealth do not even live in upscale neighborhoods.”
Think and Grow Rich, Napoleon Hill
A timeless book that was written in 1937 and is still relevant today. ‘Think and Grow Rich’ is an inspiring book for those starting a small business or wanting to become wealthy.
Napoleon Hill interviewed hundreds of successful millionaires throughout his career and compiled their success information into this book.
It’s full of valuable statistics and has many practical examples that readers can consider for their own lives.
Again, even though it was written in 1937, it’s full of practical advice that any beginner can use in 2022.
A good quote: “The way of success is the way of continuous pursuit of knowledge.”
Why Didn’t They Teach Me This in School, Cary Siegel
If you’re just starting with personal finance, this is a must-read book. Cary Siegel talks about his personal experience with school and his problems in understanding the covered topics.
Siegel offers the advice he wished his parents, teachers, and counselors shared with him when he was in high school regarding money, education, and what to look out for financially.
The book lists 99 money management principles and has several lessons from different personal finance topics like investing, budgeting, debt, housing, and saving.
This is an ideal book for those wanting an easy read, as it doesn’t have the financial jargon or complex topics for beginners.
Good learning: “Net worth is what dollar value you are worth. To come up with this number, you add up all that you own and subtract everything you owe.”
The Wealthy Barber Returns, David Chilton
Following the success of his 1998 version, David Chilton’s ‘The Wealthy Barber Returns’ talks about financial literacy and how to start with financial planning.
Unlike the original, which used fictional stories and characters, Chilton’s book explains real-life topics and thoughts on money.
While you do need a little bit of financial knowledge, it’s ideal for those wanting saving, investing, and financial expertise.
It’s an excellent pick for a finance book for beginners, filled with knowledge, real-life examples, insights, and self-deprecating humor.
Broke Millenial, Erin Lowry
Broke Millenial is an excellent introduction to personal finance and is suitable for teenagers to young adults.
It covers aspects of finance like mindset and mental blocks, benchmarks to hit at certain ages, the basics of investing, retirement planning, buying your first home, and so much more.
Erin Lowry knows how to connect with the audience through relatable and straightforward language.
If you’re looking for a book that covers the basics of personal finance, this is a must-read. It isn’t dragging and boring and is quite a fun read.
Investing For Dummies, Eric Tyson
The last book on this list for the best finance books for beginners is ‘Investing for Dummies.’ If you’re a beginner who wants to learn the basics of investing, this is the ideal book for you.
This book includes general tips and information on specific terms like stocks, bonds, options, and more. It also explains what investments are best, depending on your age or the stage of life that you’re currently at.
Inside, you’ll learn how to choose your investments wisely, build your wealth through stocks, understand tax laws, and heaps more.
If you’re looking for a comprehensive book on investing that’s targeted towards beginners or “dummies,” then you should check this book out.
Good quote: “To determine the price-earnings ratio of a particular company’s stock, you take the price per share of the company’s stock and divide it by the company’s earnings per share.”
Wrapping Up
So, if you’re looking to improve your financial literacy as a beginner, these 11 books are a great place to start with.
These books will help you learn about the power of saving, making money, investments, debt-free living, and heaps more.
While some concepts will overlap from book to book, it’s excellent to understand finances from various authors.
Remember, choose whichever finance book seems right for you.
Which of these best finance books for beginners do you plan on reading?
Read next: The Best Net Worth Books to Read in 2022