3 Books That Will Make You Less Dumb on Your Finances
The more you know, the more money you can make.
“Books are boring”, says the person who prefers other ways to entertain or educate themselves.
That was the line that stuck with me for a long time. I associated books with boredom. When I read, I fall asleep. What changed me?
When I finally accepted that I don’t know everything.
The more I read, the more I realize how much I don’t know lol.
And because of books, I became less dumb.
I’d love to share a story about how it all came about. But you only have a few moments to spare. So I’ll make it quick and get to the point…fast!
The Richest Man In Babylon by George Clason
This is a classic story on how to become rich. No, it’s not going to dive into investment fees, retirement planning and all that. But it’s the book that taught me about the importance of working your ass off and going somewhere with it.
It changed my view of “work”. Most of us dread Mondays because we feel stuck in our current situation. We would bet on the lottery here and there. Or sometimes with a group of people at work — the more tickets, the higher chances of winning.
In terms of statistics, that makes perfect sense. But then you still have to rely on Lady Luck to grant those wishes.
Well, lucky you, the book talks about how to charm Lady Luck. However, in most cases, she only rewards people who are not lazy.
Then you’ll say, “I work 80-hrs a week but seem like I’m going nowhere”. That’s probably because you’re too lazy to learn and manage your personal finance. Most of us associate the word “lazy” with physical activity. But it also applies to efforts to improve your knowledge (mental) and relationships (emotional).
The book also introduced to me the idea to pay myself first before anything else. It’s its own way of teaching the importance of saving.
There’s obviously more to the book. But those are my main takeaways.
This is the book that will inspire you to get started with managing your finances.
I Will Teach You To Be Rich by Ramit Sethi
I bought this book because I want to be rich haha. Or should I say, “I don’t want to stay poor”?
As scammy as that book sounds, it’s actually one of the best books I’ve read on personal finance. It teaches you the basics of managing your finance in a “not-so-technical” way. It’s written in a way such that it’s not wagging its finger at you, but more like showing you peep-holes of how the financial industry is becoming richer and richer from you.
But the most important take away I got from it is the idea of automating your finances.
Automation is powerful because it permits you to become passive about it. I’ve been passive with my finances for a long time. It is still my default management style. I know it’s bad, but automation makes it less bad.
You know how CPP is automatically deducted from your paycheck and you never paid much attention to it? Well, same idea. The only difference is that you are paying, saving and/or investing automatically. The less you manage, the more time you have for doing whatever you enjoy doing.
Long story short, get this book if you want to understand how the financial industry is taking advantage of you.
Most of the time, we’re unaware, which is why it feels ok to get screwed over. You can change that today.
Unshakeable by Tony Robbins
Before the whole work-from-home arrangement happened due to the pandemic, I use my commute time to listen to podcasts and audiobooks. This is one of those books I listened to on those commutes.
Like Ramit’s book, Tony Robbins also talks about how the financial industry is becoming richer and richer from the average people.
The biggest one I can remember is how they use a “Trojan horse” known as fees to significantly reduce the growth of our investments. Ramit talks about this in his book as well.
It is these fees most of us are unaware of simply because they don’t look much from the surface. One percent fee may sound ok but it can gouge your investment earnings over time.
The main takeaway is that you look for an investment with the least amount of fees. It’s less likely that you’ll see these fees shown in public. So instead of Googling your way for an answer, talk to your financial advisor instead.
The book also re-emphasized the importance of getting a life insurance policy. I haven’t had life insurance for years! Why not? Simply because I didn’t understand why I needed it or why it’s best to get it as early as possible.
It’s mandatory to have insurance for your car or house mortgage. Ask yourself why this is the case. It’s not really to make the insurance companies rich but because a lot of people have struggled due to sudden unfortunate events. It wouldn’t be a business if it wasn’t a need.
Now, ask yourself if those things require insurance, why wouldn’t you do the same with your life?
The insurance is not for you — it’s for your family.
If you’re super-rich, you probably wouldn’t need a life insurance policy because your family’s wealth can handle the financial loss. But if you’re an average individual (like me) who’s trying to work a little harder to pay off the debts, then you would need it.
There’s more to the book. It puts you in the right mindset to handle the changes in life that affect your finances. So if you want to get your (financial) mind right, this is the book for you.
Conclusion
These are just some books I read in the past that had a significant impact on how I handle my finances. I hope they can help you the way they helped me.
Books to me are the cheapest investments that provide immeasurable growth. “Immeasurable” because you can’t really put a price to insights or aha moments.
Invest in yourself.
Start educating yourself today.
Your future you will thank you for it ;)
