6 of The Best Financial Books of All Time
If you follow me on social media, you know that I am an avid reader. I soak up all the information I can so that I can continue to grow and understand more for myself and my clients.
I thought it would be fun to compile and share the best financial books to read, both for personal and business growth.
The following books make up my personal list of favorites and are well-regarded as some of the best financial books of all time. I hope you enjoy reading the list and you find a couple of books to pick up for yourself!
3 Of My Favorite Personal Finance Books
1. The Simple Path to Wealth by JL Collins
First up, we have one of the most incredible books for the overwhelmed but eager investor. If you know you need to invest but don’t know where to start, this book is for you.
Here are a few of the concepts discussed…
Avoid debt. If your lifestyle meets or exceeds your means, you are a slave to it. Debt, even a little bit, takes away any financial freedom you desire. Work up to saving or investing 50% of your income.
Avoid fiscally irresponsible people. The people you’re around the most, particularly your spouse, have a huge impact on your financial future.
Never buy stocks on a margin. Safety is an illusion, don’t fall for it.
The stock market is a powerful tool to build wealth and you should invest in it. The market has always recovered. Always.
Aggressively create an “F-You fund” in your youth. This is a savings fund that can provide you with true freedom to make the best possible decisions for your life.
I think this is a great read for those who have considered hiring an advisor and feel they can’t afford it, they have had a bad experience with an advisor and need help building their wealth with straightforward advice or simply want to become more knowledgeable about investments.
2. Secrets of the Millionaire Mind by T. Harv Eker
Next up, I’ve chosen a mindset book. Mindset work may seem strange to some, but what I’ve found over the years is that mindset work is key to an overall healthy and fulfilling life. Not just healthy finances.
Here are a few concepts discussed…
The book emphasizes the mindset of rich and poor people. Not the differences between the personhood of rich and poor people.
Know your skills and gifts, and use them to solve problems for others. Your money works for you so you can help other people.
What you focus on and give thought to expands.
Growth happens when you’re uncomfortable. Don’t be afraid to stretch yourself.
Employ “power thinking”. Unlike positive thinking (which can create unrealistic optimism), power thinking is only allowing thoughts that support success and happiness to stay in your head. Your thoughts can either help you or sabotage you.
This book is great for people new to personal growth who need to start from the beginning to build their wealth mindset. I especially like that every chapter ends with positive affirmations.
3. The Millionaire Next Door by Thomas Stanley
When it comes to wealth building, I think a lot of us still have the misconception that you have to live in the best house, drive the best car, and go to the fanciest places, to show that you have millions in the bank account.
But this book puts that assumption to rest. We all have the potential to be a millionaire if we make wise decisions and make our money work for us, instead of us working for our money.
Other ideas discussed are…
Spend less than you make, those who tend to look rich are drowning in debt. Financial independence is more important than displaying your wealth.
Put your time, energy, and effort into productive ways of earning money. Make your money work for you through stocks, bonds, and other investments.
Generational knowledge of wealth rather than just passing down the wealth. Truly teach your children how to handle their money.
Work in a job that makes you excited about life.
This book also discusses the importance of an “F-You fund”.
In the end, I think this book is an incredibly valuable reminder of what true wealth looks like.
3 Of My Favorite Business Finance Books
Now I want to review a few books that will benefit your business growth. Running a small business is exhausting work. You have to wear many different hats and sometimes, hiring an accountant just isn’t enough.
As a business owner, you need to understand what is happening with your finances, not just sweep them under the rug. Use these books as tools to take your business to the next level.
1. Accounting for the Numberphobic by Dawn Fotopulos
I love this book because the author takes dry and often hard-to-digest concepts and breaks them down for any small business owner to understand.
Key topics she addresses include…
You are the most invested person in your own company so you must know what's happening with the finances.
Break-even numbers, how your net income statement is key to growing your profits, and real-world advice on measuring and increasing your cash flow.
Real case studies and practical action steps to help your business profitability.
A breakdown of what it takes to get a business loan and the nuances of the application process.
Overall, this book is one of the best financial books to read because it helps you take control of your accounting without a headache.
2. Rockin Your Business Finances by Christine Odle
This is such a fun and easy book. The author takes annoyingly boring concepts and brings them to life. She helps you understand your financial numbers with certainty, lower your tax liability, and how to understand the numbers behind paying yourself and growing your business. All while not putting you to sleep.
I also love…
The worksheets for you to write down your company's numbers and apply her concepts right away.
That you will want to apply these concepts as soon as possible and then watch your business thrive.
How she discussed the mindset required to run a successful business and how to grow a healthy mindset.
How she helps people know the difference between running a business and a hobby.
How she discusses a healthy tax mentality and how to manage budget and cash flow.
I truly believe all business owners can benefit from this one because the concepts she covers are low-hanging fruit for beginners and great refreshers for those with a more advanced understanding.
3. Profit First by Mike Michalowicz
This book profoundly changed my life and how I run my business. Concepts from this book are also what I teach all of my clients. So if you take nothing else from this article, take this home, you NEED to read this book if you want the most profitable business possible.
Some key takeaways from this book are…
Instead of sales - expenses = profit, he teaches sales - profit = expenses.
The book applies to more than just business… Do you only give your family what's left over or do you serve them first and ensure their happiness? So too in your business, do you pay yourself and your employees first and then be as frugal as possible with expenses?
Practical and easy to apply tips with numbers that make sense.
Instead of putting extra profits back into the business, he teaches how to run your business more efficiently without needing to spend more money on new gadgets, which takes away from the profits.
This book is phenomenal and life-changing for my own business and hundreds of other people I have worked with. Some will argue that it’s not possible to pay yourself before paying your expenses but I truly believe that it's not only possible but essential to have a thriving business and life.
Along With These Books, Hire Financial Fitness Coaching to Navigate the Financial Jargon
Although I truly believe these books can be enough for some people to manage their business finances, it never hurts to have a second set of eyes and a confirmation you know what you're doing is the most profitable.
At Financial Fitness Coaching, we teach that “Profit First” is the best way to run a business. But some people may struggle to hone in on this concept since it turns what the mainstream teaches on its head. To see how we can help you and your business email me at kristen@financialfitnesscoaching.com or simply schedule a free 20-minute Discovery Call on my calendar.