Ever thought of playing chess without knowing the rules? Doesn’t really make sense, does it?
And that’s what you also need to know to keep your finances organized and to optimize them in order to reach your goals.
But there’s what some people get wrong and actually prevents them from taking action: money doesn’t really need to be that complicated.
There are a lot of amazing resources you can take advantage of, in very different styles, that can do wonders for your money management regardless of the situation you are in right now.
Here are 6 that you can pick up to start taking action or just make a better plan.
To get started: Rich Dad, Poor Dad - Robert T. Kiyosaki
A classic in the financial space, it is written from the author’s point of view, telling us about his two dads: “poor dad” is his own, while “rich dad” refers to one of his friend’s father.
While there is some debate as to whether the “rich father” character actually exists, and how much of the narrative is true, the fact remains that the lessons in this book are unquestionably useful.
Key points talk to the matter of financial literacy, the real difference between rich people and poor people, and to understand how you should actually think about money and the human mind.
To set systems in place: I Will Teach You to Be Rich - Ramit Sethi
Admittedly with a bit of a fishy title, it is nothing of the sort.
With a very in-your-face style, Ramit has become a force to be reckoned with for quite some time. Starting out exclusively on financial blogging, he has grown his operations to teach people on psychology, launching businesses and, in his words, have a rich life.
The book consists of a 6-week program, step-by-step, through which he intends you to not find yourself in one of these situations: not thinking about money, leading to disaster, and obsessing about money, leaving you in a permanent state of life on the spreadsheet.
A big defender of automation, being mindful of your invisible scripts (views that you have internalized without being aware) and focusing on big wins so you can enjoy yourself more are a few of the ideas you can find here. And bonus points for being a genuinely fun read.
To uncomplicate money: The Simple Path to Wealth - J.L. Collins
A great example of great advice not needing to be complex. You can start completely from scratch as you tackle the basics of really understanding money. And you need to. As it is put, “If you choose to master it, money becomes a wonderful servant. If you don’t, it will surely master you.”
From there, you steer away from complexity when it comes to investing and the simplest money rule you need to know (hint: it relates to spending less than you earn).
And you end up with realising that investment is not only reserved for the select few, but that it is actually at the reach of everyone that takes some time to understand the actual nature of investing.
To reflect and connect the dots: The Richest Man in Babylon - George S. Clason
Another classic in its own right, the book tells us a series of tales of a fictional Babylonian - Arkad. Originally released as a series of pamphlets distributed by banks and insurance companies, its many stories serve as a means of delivering financial lessons.
Famous key lessons include the “Seven Cures for a Lean Purse”: start thy purse to fattening, control thy expenditures, make thy gold multiply, guard thy treasures from loss, make of thy dwelling a profitable investment, insure a future income, increase thy ability to earn.
And since this book is in the public domain, you can access freely in many places, including here.
To keep your mind in check: The Psychology of Investing - John R. Nofsinger
Do you think that you act mainly rationally when it comes to money? Traditional economy seems to be based on that idea too, but think again.
We are all human beings, after all, and there are a lot of other elements that factor in when it comes to making any decision, and that includes financial decisions.
This book is vastly rich when it comes to exposing all kinds of cognitive traps we are all vulnerable to, particularly applied to investing.
From overconfidence to considering the past in making investment decisions, and with not forgetting the role emotion plays, you may well consider this to be an eye opener that can help you keep your human faults at check.
To stop panicking and get it together: Broke Millennial - Erin Lowry
Millennials are a generation famed for much. One of them being facing one of the biggest financial crises we have memory right in their early-career stages.
Having grown up in an environment that promised nothing but opportunity, reality was not so forgiving.
In a language tailored to this generation’s culture, Lowry sets down a roadmap to be followed by the titled “broke millennial”, along with entertaining stories and tips for day-to-day situations they might find themselves in.
Are you ready to start?
Or do you just seek to tweak your money patterns? Whatever stage you are in, a good primer on financial wisdom may be just what you need. And if you know someone that should get started, remember to share good opportunities.