Personal finance might appear to be a daunting subject matter. There are a plethora of excellent books to pick from on the subject. Although devouring 50 books per year would be handy, we can’t all be Bill Gates and consume that many books. The majority of us have to select and choose where to begin our journey. Start the new year with a new mindset.
However, if you are short on time, I recommend starting with these two titles.
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
Why do the wealthy become wealthier while the poor become poorer? Why do educated middle-class people have good careers yet struggle to meet their financial obligations? In “Rich Dad Poor Dad,” Robert Kiyosaki reveals what he learned about money from his “rich dad” and “poor dad,” the secrets that divide the Rich from the Poor and Middle Class, and how we may use this to build our fortune.
Schools do not teach students about money or financial literacy. Most people learn about money through their parents, which contributes to the affluent getting richer and the poor being poorer. Kiyosaki was lucky to have two fathers — one wealthy and one impoverished. Kiyosaki learned from both by comparing and meditating on their differing counsel.
“Poor Dad”- His real father was a well-educated school teacher with a Ph.D. Despite having a solid salary, he had a lifelong debt and finances.
“Rich Dad”- His closest buddy Mike’s father was a company mogul who never finished eighth grade but rose to become one of Hawaii’s wealthiest men.
Kiyosaki and Mike approached ‘Rich Dad’ at the age of nine and requested him to teach them how to get rich. Rich Dad began their financial education with real-life teachings and continued for 30 years until Kiyosaki was 39 years old. Robert Kiyosaki describes his learning path and the six essential principles he learned for 30 years in this book.
What lessons are learned on purchasing this book?
• It doesn’t matter how much money you make. It is the amount of money you keep.
• Both the impoverished and the middle classes work for a living. The wealthy have money working for them.
• It is the daring who get ahead, not the wise.
• The mind is the single most powerful asset we all have. If properly taught, it has the potential to generate great riches.
• The wealthy concentrate on their asset columns, while everyone else concentrates on their income lines.
• Those who avoid failure are likewise likely to shun success.
Buy it here:
The Psychology of Money
One of the greatest books to learn more about personal finance is Morgan Housel’s ‘The Psychology of Money- Timeless Lessons on Wealth, Greed, and Happiness. This book is neatly written and delivers a lot of insight and high-quality material.
Morgan Housel provides 19 stories in this book that explore the unusual ways in which individuals think about money. It discusses insights into our relationship with money and how our financial thinking influences the important decisions we make in our lives.
The thesis of this book focuses on the fact that performing well with money has little to do with intelligence and a lot to do with behaviour. It motivates you to have a prosperous life by making wise judgments.
Why should you read this book?
‘The Psychology of Money’ is brimming with interesting ideas and useful insights. A few examples are shown below.
● Both chance and danger are difficult to quantify, and social comparison is an issue. All delight is stolen by comparison. Remember, there’s always a larger fish out there.
● Give yourself a chance to win by capitalising on lengthy tails.
● Compounding only works if you allow it enough time to mature.
● The greatest type of riches is the ability to do what you want when you want.
● Don’t be misled by folks who flaunt their wealth. It’s hard to tell if someone is wealthy just
by looking at them.
● Lower your ego. Keep an eye out for the greatest possibilities. These are only possible if you save.
● Rather than being rational, be reasonable. Reasonable is more accurate.
● Investing is not a difficult science.
● Every investment will not be a success. Learn to plan ahead of time.
● Handle market volatility. Accept and welcome it.
● Organise your race.
Buy it here:
Buy on Amazon: Best Price Available
Amazon has the best prices on Rich Dad Poor Dad by Robert T. Kiyosaki. Its paperback book costs Rs. 292. On the other hand, Morgan Housel’s The Psychology of Money costs Rs. 269, while its Kindle edition is Rs. 188.10.
When you purchase these books from Amazon, you will have access to the following features:
• There is a pay-on-delivery option available.
• A replacement offer is available for ten days.
• Amazon will send this book to your door in a secure manner.
• There is a no-contact delivery option available, making it safer during the pandemic.
