A large majority of people are looking to get rich. Since you are reading this story, I deduce that you are one of those people just like me. So I’m going to ask you a simple question:
Do you have a well-defined financial strategy for getting rich?
I imagine that you find it very difficult to answer this question positively and to be able to detail in a few lines what your financial strategy is.
In fact, you read books or articles about money and investments but you have never bothered to establish a real financial plan for your future.
You should know that to become rich, you will need to define a clear plan first. In order to help you in this first step, I am going to recommend 7 books that you must read.
These books will exponentially increase your chances of becoming rich by helping you understand money, how to make money and especially how to manage it in the best way possible.
1. “The Richest Man In Babylon” — George Samuel Clason
Published in 1926, this great classic by George Samuel Clason is the first popular book on personal finance. The author uses a lot of parables but they serve rather well to make his book extremely strong and striking.
Rich people are rich because they save their money, do not go into debt and do not spend their money foolishly.
This is the essential idea that George Samuel Clason wants to convey to the reader through his book.
To do this, George Samuel Clason advises you to pay yourself first by saving at least 10% of your income. This way of thinking has since been repeated in many books on wealth and personal finance.
Paying you first means not spending your money on useless things you don’t need.
Those who fall into this trap make the choice to serve last. And often there is not much left to spare at that point.
The book “The Richest Man In Babylon” is essential in your path to wealth because it will teach you how to manage your money in the best possible way.
2. “The Intelligent Investor” — Benjamin Graham
The stock market is clearly one of the 4 pillars of investment. Nevertheless, not everyone is cut out to invest in the financial markets. There are also several possible strategies.
For example, some will prefer to invest in individual stocks and others in managed funds.
Warren Buffett always says that if you had to read only one book on investment it would be Benjamin Graham’s “The Intelligent Investor”.
Given Warren Buffett’s phenomenal success as an investor, you absolutely must read this book, which is the bible of value-investing philosophy.
This book may make you want to invest in the stock market or make you realize that this world is not for you. In any case, you must read it if you really want to become rich one day.
3. “Your Money Or Your Life” — Vicki Robin and Joe Dominguez
People who get rich and manage to stay rich have a very special relationship to money. They have quickly realized that more money is not always better.
Exchanging your time for money all the time without setting a limit is detrimental to your vital energy. You work very hard for money but you have no end in mind.
The book “Your Money or Your Life” is important because it teaches you how to transform your relationship to money.
Getting more money shouldn’t come at the cost of your well-being and health. Vicki Robin and Joe Dominguez emphasize this point in the first part of the book.
By choosing to detach yourself from money, you will live a healthy and rich life.
Instead of striving to do more and more, you need to think about how to improve your money management. This is precisely what the second part of the book teaches you, which is much more practical.
The authors of the book then focus on the need to retire early to enjoy life as soon as possible by doing nothing more.
This conception of life belongs to them and I will leave it to you to judge whether stopping working at 30 and having nothing to do is your real goal.
Personally, I do not share this point of view.
Becoming rich should rather serve you to have a choice. You must have the choice to work when you want on things you are passionate about or to stop when you want.
As such, you must see money and wealth as a means to a more fulfilling life rather than as an end in itself.
4. “Rich Dad Poor Dad” — Robert Kiyosaki
To succeed in enriching oneself in life requires a mastery of the main principles of personal finance. The American author Robert Kiyosaki is a reference in this field.
The book “Rich Dad Poor Dad” has sold more than 30 million copies worldwide since 2001!
It’s just colossal. In fact, Robert Kiyosaki has influenced countless people who want to become rich.
Robert Kiyosaki makes us realize that we are stuck in what is commonly known as the Rat Race. Concretely, we exchange our time, i.e. a 9-to-5 work, for money.
Many people become aware of this infernal cycle that prevents them from becoming rich but choose to stay there out of fear and greed.
The fear of not being able to pay the bills blocks us in our will to create our own business to see bigger than this 9-to-5 job that ensures we can pay the bills.
Greed keeps us in this Rat Race once the salary we receive is sufficient to allow us to satisfy our needs and pleasures.
Robert Kiyosaki invites us to remedy this by discovering the basics of personal finance. He highlights the difference between assets and liabilities, while insisting that you must give priority to the assets in your life.
Finally, Robert Kiyosaki makes us aware of the fundamental difference between rich and poor people:
Rich people play to win while poor people play to avoid losing.
With his book “Rich Dad Poor Dad”, Robert Kiyosaki shows us the way to play to win in life and maximize our chances of becoming rich.
5. ”The 4-Hour Workweek” — Tim Ferriss
In his book “Rich Dad Poor Dad”, Robert Kiyosaki gives you the keys to wealth by highlighting the difference between assets and liabilities. He explains that you should focus on assets while minimizing liabilities.
Robert Kiyosaki’s approach is totally true but remains very theoretical.
It doesn’t tell you how to make money to get rich and then focus on assets.
With “The 4-Hour Workweek”, Tim Ferriss fills this gap by showing you in detail how to create a business that serves your life. Tim Ferriss invites readers to ask themselves questions and shows them how to leave the famous Rat Race in a practical way.
He presents all the tools you need to learn how to create your own passive source of income.
By following Tim Ferriss’ approach, you will be able to lead a wealthy life now by building a business that serves your life.
This last notion is essential because many entrepreneurs create businesses that work well but at the cost of their well-being because they are very time consuming.
This book will teach you not to fall into the trap of those who put their life in the service of a business in order to become rich and then have no time to enjoy their life.
6. “The Simple Path To Wealth” — JL Collins
JL Collins is a practice-oriented man who invites you to discover how to establish a financial strategy adapted to your profile in “The Simple Path to Wealth”.
JL Collins recommends saving 50% of your income in the first place. The sooner you save, the better for your future.
By following this advice, you will accumulate wealth again and again while continuing to work. JL Collins advises you to define the amount of money you need to live on a monthly basis when you retire.
You should then save and invest to reach that amount each month. Investing your money in one or more index funds is the best solution for him.
The book “The Simple Path to Wealth” will help you build a detailed plan towards wealth taking into account your personal situation. The efforts you need to put in place to achieve this plan will depend on your personal goals.
7. “How To Stop Worrying And Start Living” — Dale Carnegie
The road to becoming rich is made of ups and downs. You must therefore be prepared for failure. The difference lies in how you will react after failure. You must realize that failure is an opportunity to learn what doesn’t work.
By using failure to improve and move forward, failure will be a stepping stone to your future success.
You probably know how afraid you are of failing in your quest to become rich. This is a good thing because without this fear, you won’t be able to move forward in life.
You simply have to learn to transform this fear of failure so that it serves you rather than you.
Dale Carnegie’s book “How to Stop Worrying and Start Living” will be your best ally in helping you stop worrying and start living for real.
Dale Carnegie pushes you to make the best decisions by and for yourself.
By following his approach and advice, you will have no regrets because your decision to invest or not on certain opportunities will be solely yours. Under these conditions, you will really be able to fully assume the positive or negative consequences.
Becoming rich is within the reach of anyone who really gives himself the means to do so. To achieve that, you must never lose sight of your goals and remain in a process of continuous improvement throughout your life. The 7 books you must read to become rich presented in this story will be your best allies in your quest.
Indeed, some of these books will teach you how to make the best decisions on how to invest your money. Then, others will show you how to define a personal financial strategy in line with your profile.
Finally, Tim Ferriss’ book “The 4-Hour Workweek” will help you create passive sources of income. All this while putting your business at the service of your life and not the other way around.
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