Personal Finance Books: Game Changers

Sometimes a little shift in your mindset or a new perspective is all you need to unlock a new level of motivation and success. These are in our opinion the best personal finance books, considered absolute must reads if you are looking for the knowledge and perspective necessary to achieve financial freedom in the quickest and least painful way possible. Which is what we are all about at the Free Times!

Even more exciting, these personal finance books make their readers excited about financial freedom and the steps that must be taken on the journey.

Read on for our top game changers, it might just change your life by teaching you how to achieve financial independence.

THE RICHEST MAN IN BABYLON

Let’s be honest, if you are here, it is likely that you have read this one already. If not, you are in for a treat!

There is a time and a place for hearing someone pontificate ideas and advice that you need to follow to accomplish your goals. However, experiencing the power of that advice is something entirely different. The Richest Man In Babylon does this with stories, characters, and plot lines that keep you engaged. Doing so communicates the true value of the ideas in a way only possible through allowing readers to experience the power of these ideas themselves.

194 pages is a lot to keep track of, luckily The Richest Man In Babylon comes with simple and succinct morals to reaffirm the lesson and story of the given chapter. An example: “Men of action are favored by the goddess of good luck.”

Key Learning: 1. Finding the “cure for a lean purse”. 2. Understanding the true impact and power of compounding through story.

The Richest Man in Babylon may be the gold standard of personal finance books, we believe it is worth its weight in gold.

The Millionaire Next Door

Picture a millionaire. Got a visual in your head? What are they wearing? Driving? What type of house do they live in? If you are like most people, pop culture and corporations looking to sell you a lot of expensive stuff have created the image of millionaires to be one of excess and luxury. Their car? Must be a range rover. House? Must be in the Hampton’s. The Millionaire Next Door throws this image out the window.

Who exactly are these millionaires, and why do some with high incomes struggle to keep any savings at all, while some with modest incomes amass a fortune. The Millionaire Next Door breaks this down at a psychological level and isolates key characteristics and mindsets that turn ordinary people into money magnets.

This book is written by two PhDs, so if you like data you are in for a treat! This book is empirical, evidence based, and a must read.

Key Learning: 1. The vast majority of millionaires are NOT what you think they are. 2. How to take stock of and evaluate your personal finance habits with data driven support to back recommendations. 3. Teach you how to become financially independent.

Mindset

All else equal, more success at work (be that for someone else or in your own endeavors) will lead to greater levels of income which in turn leads to financial freedom faster. Mindset breaks down the barriers that might be holding YOU back from achieving your full potential.

In a nutshell the basic idea behind Mindset is that some people think of their abilities and characteristics as simply the way things are, while others think of their abilities and characteristics as fluid and ever-changing features of oneself that reflect their efforts to improve.

Many of us slip into a fixed mindset, and in doing so slip into a box that limits out potential. Learn how to escape this cycle and unlock the power of a growth mindset.

Key Learning: What exactly is the power of a growth mindset?

Security Analysis

It comes as no surprise that many folks who are interested in attaining financial freedom are also interested in mastering the stock market as a means to get there quicker. Enter Security Analysis.

Written by Benjamin Graham and David L. Dodd, Security Analysis has stood the test of time. The oracle of Omaha himself (aka Warren Buffet) credits what he knows about investing in the stock market to what he learned from Ben Graham. Those are some results I would love to replicate!

If you have never read a balance sheet or income statement, Security Analysis has got your back. You will learn how to predict future stock price appreciation in a reliable historically proven way based on data and metrics publicly available for all publicly traded companies.

This is THE book you need if you want to have success in the stock market.