I love to read, so it’s no surprise that when I was finally ready to tackle my finances, I turned to books to help me.
These days most of us have some serious personal finance goals that we’re trying to meet. More of us are graduating from college loaded with debt, and just the idea of homeownership seems out of reach, not to mention retiring someday.
No book can change your life – you have to do that. But you might find the right book that can give you the information and motivation to change your life for yourself. The books on this list did that for me!
In this post, I’m sharing the 7 best personal finance books to read in 2020 if you’re ready to transform your finances.
The 8 Best Personal Finance Books to Read in 2020
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You Are a Badass at Making Money by Jen Sincero
In this book, Sincero shares her personal money journey. She talks about overcoming her bad money habits and her negative money mindset.
This pulled me in right away because so many of the negative thoughts about money that Sincero said had held her back are thoughts I have had about money too.
I love that she wrote the book from her own personal experience, and I genuinely think everyone can find something in this book that really hits home with them, from identifying the money beliefs that are holding you back to transforming your relationship with money.
Finally, I just love Sincero’s writing style and sense of humor, which made it really easy to read.
Broke Millennial by Erin Lowry
One of my biggest complaints about personal finance tips and books about money that I’ve read before is that they really aren’t written for a millennial audience. And thanks to student loans and the financial climate we’ve started our careers in, millennials really face different financial challenges than previous generations.
If you’ve run into the same problem, then this is the book you’ve been waiting for.
In this book, author Erin Lowry dives into real-life issues that millennials are facing when it comes to money. Some of the topics include student loans (obviously!) and addressing whether we millennials will EVER be able to retire.
She also dives into some of the more personal issues surrounding money such as millennials moving back in with their parents, and the topic of money in friendships and romantic relationships.
This is definitely the most relatable personal finance book for millennials that I have read.
Smart Women Finish Rich by David Bach
I first discovered this book by David Bach when I listened to him being interviewed on a podcast. He was talking about the unique financial needs that women have as a result of the pay gap, our longer life expectancies, and the fact that men have traditionally controlled family finances.
It was so eye-opening for me and I bought Smart Women Finish Rich right away.
In this book, the author all of the financial steps that women should take at various parts of life to prepare for the future. He walks you through advice for saving for short-term and long-term goals, as well as ensuring you’re able to retire someday.
The Total Money Makeover by Dave Ramsey
His Total Money Makeover is definitely one of the most famous financial plans to follow, especially if you’re getting out of debt. Does the snowball method ring a bell? That is courtesy of Dave Ramsey.
The Total Money Makeover is amazing because Ramsey literally gives you a step by step list of “baby steps” for your finances.
The book covers everything from setting up your emergency fund to paying off debt to preparing for your future. This one is hands down one of the best financial books for beginners.
Your Money Or Your Life by Vicki Robin & Joe Dominguez
This book is very different from Dave Ramsey’s book in that it’s not about giving you a step by step plan for your finances. Instead, it’s about figuring out your relationship with money and creating financial goals based on your personal values.
The big takeaway from the book is the question, “How much money are you willing to trade your life for?”.
The authors of the book really emphasis that making money is what you need to build a life that makes you happy. So why would you do something that makes you unhappy in order to earn more money?
And if you decide you’re willing to earn less money to achieve true happiness and earn back more of your time, then this book can help you create spending habits that align with your new budget.
I Will Teach You to Be Rich by Ramit Sethi
This book by Ramit Sethi is one of the more big-picture books on saving money and budgeting. This book is super comprehensive and would be a great starting point for personal finance beginners.
In the book, Sethi covers four major pillars of personal finance: banking, budgeting, investing, and saving.
I love this book because so much of the advice he shares are tips that you can literally do today. As I was reading it, I found myself taking lots of notes and taking immediate action on some of the items.
It’s also very comprehensive, so you’ll be able to use this book for many areas of your life for years.
The Millionaire Next Door by Thomas Stanley and William Danko
They basically figure that if you want to be a millionaire, why not learn from people who have already done it?
One of the big takeaways for me is that becoming a millionaire isn’t about finding a job that pays you a ton of money, it’s about properly managing the money you do make.
Here’s a spoiler for you: millionaires get that way by being frugal!
The Automatic Millionaire by David Bach
This book is incredibly relatable because it focuses on an average, middle-class couple who are doing amazing financially because of the systems they have in place regarding their money. They own two mortgage-free homes, put their kids through college, and retired at 55 with more than $1 million in the bank – all with a joint income that never exceeded $55,000. Is that aspirational or what??
Bach argues that it’s not through budgeting that someone becomes a millionaire, but through automatic saving and investing.
There are so many more personal finance books I could recommend to you, but these seven are an amazing starting point. They cover the basics of personal finance from mindset to practical steps you can take today.
If you have any personal finance books that you love, leave them in the comments so we can check them out!
Looking for additional personal finance content? Be sure to check out my post on the best personal finance blogs for women.