5 Books On Money You Should Read This Year | Personal Finance Book Recommendations


An investment in knowledge always pays the
best interest – Benjamin Franklin. And relevant knowledge, when properly applied,
is the most valuable skill we have. Hey everyone Daniel here and welcome to Next
Level Life a channel where you can learn about Investing, debt, retirement, and many other
general financial education videos because the school’s aren’t going to do it for us. So if any of those topics sound interesting
to you or if you want to learn how to better handle your money and have more financial
freedom be sure to hit that subscribe button and the bell next to my name to be notified
every time I upload a video. And if you want to further support the growth
of this channel you can check out some of the links I’ve left down in the description
below which includes a 30-day free trial of Audible and 2 free audiobooks of your choice
as well as a list of some books on money I’d recommend checking out, or you can share this
video with a friend, and leave a comment below letting me know what topics you’d like me
to cover in future videos. So today I just wanted to make a quick video,
since it is the holiday season and I didn’t want to go into anything too deep or take
up too much of your time. Therefore, I thought it would be a good idea
to take a little time to introduce a couple of other sources from which you can learn
about finances and money in general. As many of you know I learned a lot of what
I know about finances from my dad but he was not my only teacher. Throughout my life, I have sought insight
from as many sources as I can get my hands on and that’s an approach that I think everybody
should take regardless of what it is they’re trying to learn. And one of the easiest and quickest ways to
get your feet wet in that arena is to read books. So today I’m going to very briefly go over
5 books that I feel everyone interested in increasing their own Financial intelligence
and getting a better handle on their money should check out if they haven’t already. For each book in this video, I will discuss
who I think the book will be particularly ideal for and why using key insights that
can be gained from the book. I have left links to all of these books in
the description below this video if any of them interest you feel free to check them
out. They are also my affiliate links so it’s a
great way to support the channel at no additional cost to you but obviously don’t feel obligated
to use those links if you’re not interested in the book. Also, be sure to stick around to the end of
the video as I’ve got a channel update that I’d like to share with all of you. With that out of the way let’s get started. The Millionaire next door was written by Thomas
J Stanley in 1996 paints the portrait of the typical millionaire thusly: 57 years old married
with 3 children. About one-in-five are retired and two-thirds
of those who are working are self-employed. This gives us an insight into how important
having a side hustle is seeing as how only about 20% of the workers in America at the
time of the writing of the book were self-employed but they account for nearly two-thirds of
the millionaires. About half of the millionaires according to
this book had wives who did not work outside the home and those that did were usually teachers. The average household net worth was about
3.7 million however some had accumulated net worths of well over 10 million which skews
the average data upward. The median net worth was 1.6 million. And here’s the crux: most live well below
their means. according to the book on average the total
annual realized income is less than 7% of the millionaires’ wealth or in other words
they live on less than 7% of their wealth. And about 80% of them are first-generation
rich, they didn’t receive any inheritance they did it all themselves. This book is one of my personal favorites
and it is one of the first books on money my dad ever showed me. I think I might have been 12 years old at
the time but I was able to follow it so I think it is a great read for anyone really
but particularly those who are just getting started on their own Financial journeys. Because it really does help paint the picture
that yes anyone can achieve this million dollar net worth goal so long as they have their
priorities in order and learn the fundamental skills of budgeting, living below their means
and investing consistently over time. Rich Dad Poor Dad is a book written by Robert
Kiyosaki in 1997 this part of a series that teaches people about the basics of financial
intelligence. in this book among other things, Kiyosaki
goes over the four pillars of financial intelligence which are accounting, investing, understanding
markets, and the law. He also goes through six different lessons
that were talked to him by his Rich Dad which are that the rich don’t work for money they
have money work for them, reasons to teach financial literacy to begin with, tips for
how to mind your own business, the history of taxes and the power of personal corporations,
how the rich invest money, and the importance of working to learn instead of working to
earn. This book may be a little bit lighter on the
here is a step-by-step guide on how to do specifically this then some other books out
there but it is very good at getting you to think a little more like the rich which I
think is very important. But if you prefer books that are more step-by-step
based this probably isn’t the best one for you. Seven steps to save your financial life now
by Daniel Solon is maybe a little bit less well-known of the book than many of the other
ones on this list but it is a very quick and easy read that gives a lot of good points. As the title suggests that goes over seven
things that you can focus on and do that can help improve your financial life such as making
sure you’re getting reliable data when you’re researching finances, ignoring those who are
claiming to have the ability to predict the future of the market because nobody can do
that, comparing active and passive investing which I’ve done on this channel already, not
trying to time the market and avoiding brokers if at all possible. As I said it’s a very quick read, only 48
pages in fact compared to the usual two, three, or four hundred that you get in these finance
books normally. So it’s an ideal book to check out if you
are short on time and don’t have more than a couple of hours free some weekend down the
road. The behavior gap is a book written by Carl
Richards in 2012 and it goes over the phenomenon that explains the difference between the return
of an investment and the actual return a hypothetical typical investor gets from said investment. The difference between the two is what Richard’s
calls the “Behavior Gap” and it exists because the typical investor often tends to
buy high and sell low simply because most people, especially when they are first starting
to invest, tend to invest emotionally as much if not more so than rationally. We saw this pretty recently with Bitcoin. To quote Richards, “It’s not that we’re
dumb. We’re wired to avoid pain and pursue pleasure
and security. It feels right to sell when everyone around
us is scared and buy when everyone feels great. It may feel right but it’s not rational.” So obviously this book also deals with the
passive vs active investing debate, but more from a behavioral standpoint than other books
on this list. It also gives some handy tips to help investors
(and their managers) control their emotions when it comes to investing. I think this book would be ideal for the beginning
investor because it is vitally important to know going in how our emotions can affect
our investing behavior so that when a crisis inevitably happens (as it will to all of us
eventually) we can better manage it. However, at 178 pages with lots of sharpie
diagrams throughout it is a breeze of a read and could be a good reminder to anyone who
regularly invests their money, especially with all the investment fear that has been
present in the markets recently. The Index Card: Why Personal Finance Doesn’t
Have to be Complicated is a book written by Helaine Olen and Harold Pollack in 2016 and
is a phenomenally simple guidebook for anyone in charge of managing their own finances,
which is basically everybody. It is based on Pollack’s premise that pretty
much everyone the typical individual would ever need to know about money could fit on
a single index card. As a matter of fact, that’s how this book
came about, after an interview between the authors many people were asking Pollack on
his blog for an index cards with financial advice on it, so Pollack jotted down nine
simple rules on an index card, took a picture of it, and posted it online. The image went viral and was covered on many
internet news sites and later the book was written, going more in depth to each of the
rules as well as adding a few that they felt were left off the original card. Now the reception for this book was mixed,
which I actually find quite interesting. Publishers Weekly even said that while the
book had an “admirable mission,” the rules it goes over “are too old and readily available
in any listicle to be worth building a book around.” It called the book “unsatisfying to all but
the most unaware consumers”. I find this interesting, or maybe confusing
is a better word, because the advice in the book wasn’t wrong (even if you certain can
take some of the concepts further than what the authors did in the book. If you need an example just look at the financially
independent; retired early community who have taken the idea of savings rates way further
than the 10% or 20% mentioned in this and many other books.), it was just simple advice. But if it works, then what exactly is wrong
with that? Do we really want financial success to be
complicated and/or overly difficult to achieve? I don’t think so. I certainly don’t want it to be that way
anyways. So who is this book ideal for? Those who want a simple, easy to implement
plan to help get their finances on track. It’s not going to teach you anything too
complex, I mean just look at the title of the book, that was never the point. It’s just meant to help get people started. And I have to imagine that there are still
quite a few people who need that first, before digging into the more complex side of finances. If that weren’t the case, there probably
wouldn’t be people living paycheck to paycheck or at least not as many as there currently
are. Okay, for those who are still around it is
time for a channel update. The holiday season is once again upon us and
I don’t want to take up too much of anyone’s time during this time of the year. I’m sure that many of you have plans with
either family or friends over the Christmas and New Year’s holidays, and so do I. So in the interest of not taking time away
from your plans or mine, there will not be a video next Monday on New Year’s Eve. I’ll also be on the road just after the
holidays as I’ve got a friends wedding to go the first week in January so unfortunately,
I will not be able to post a video that Monday either. I will be back that following Monday, January
14th. I know that last time when my personal schedule
got too overwhelming to maintain my regular uploading schedule many of you were wondering
where I was, since I didn’t really mention what was going on in my last video, I apologize
for that, I didn’t realize that I would end up being gone for as long as I was and
I didn’t want to leave you guys in the dark on this one. So I hope you guys enjoy the holidays and
I will see you in January. But that’ll do it for me today once again
if you enjoyed this video be sure to subscribe and hit that Bell next to my name so that
you’ll be notified of all my future uploads. I generally upload every single Monday, and
if you have a friend that would be interested in this kind of content be sure to share it
with them and let’s really get this information out there and start our own Financial revolution.

43 thoughts on “5 Books On Money You Should Read This Year | Personal Finance Book Recommendations

  1. Millionaire Next Door was one of the very first financial books I read back in my early 20's. It blew my mind and I never looked at people with fancy cars the same way again! In fact, I did not own a brand new car until 2015 when I was just in the cusp of retirement, and even then got a very trusty, very efficient, and very 'low profile' Hyundai. I was going to replace it with a German car…until I watched your video on how the purchase of a car will affect my retirement money. I knew that already, but the way you presented the info made the idea of not replacing my car even more compelling.

    🎄Have a very Merry Christmas & a Fantastic 2019🎄…and have fun at the wedding!

  2. I have read 3 of these so far, I plan on consuming all of them. As stated in your video, the more that you know, the better decisions you can make

  3. The Index card looks like a book FULL of slowlane strategies. Sure if you want to be a millionaire by age 70 then follow these principles..

  4. Appreciated ❤️ I also enjoy all of David Bach's books (easy reading and motivating) as well as Tony Robbins' financial books Money Master the Game and Unshakable. The reinforcement of my interest in index funds alone made them worthwhile reads.

  5. Fantastic videos! I am a math teacher in Canada, and I am looking to increase the breadth and depth of the financial education component of my future grade 12 courses significantly. I am relatively new to this area of study and do not have significant resources. I am interested in using your videos as instructional tools. What series of videos do you think would be most valuable to show? I may only have 2 weeks to devote to this unit.

    Thank you

  6. If your busy….

    1.The millionaire next Door
    2.Rich dad and poor dad
    3.7 steps to save your financial life now
    4.The Behaviour gap
    5.The index card
    😊

  7. Thank you for your info, very clear and usefull. I see you have the book linked in the description. I am very curious about your thoughts on the book: Your Money or Your Life by a.o Vicki Robin.

  8. the only one worth spending your time on is rich dad poor dad. and maybe the behavior gap, should look in too that one. for all the other book, you can't save your way to financial freedom. money is only worth something when you spend it and you have to spend moeny to make money. please check out Grand Cardone if you really want to become rich, he really did help me

  9. It's crazy cos I have read 3 out of the books you mentioned, and I 100% recommend them to everyone as well. Books have taught me loads of traps I would have fallen into with regards to personal finance. May I add some of my personal favorites, 'The Little Book of Common Sense Investing' by Jack Bogle…and 'Money Master the Game: 7 Simple Steps to Financial Freedom' by Tony Robbins. Great video as always. -Idy

  10. Rich dad poor dad is great book but if you really want know the steps to get that financial freedom read Total money makeover by Dave Ramsey. Second most recommended of all time is 4 hour work week by Tim ferris to escape the 9-5 rat race.

  11. Thanks for all of your work on these topics. They're reminding me how to regain financial control. One problem, when you're relying on Social Security Disability income ($4K with 21% debt ratio) at 53 its hard to get out from under that dependence due to restrictions.

    Might you cover topis in this area in the future? Specifically how to invest while staying within restrictions and eventually become self supportive?

  12. Thank you for the content. It's helped inspire me to make my own youtube video…just uploaded my first one!

  13. Rich Dad Poor Dad is an overrated book that people, in my opinion, could skip. The Millionaire Next Door and The Millionaire Mind are must Reads. I’d also suggest A Simple Path To Wealth by JL Collins.

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