{"id":322,"date":"2019-12-30T06:35:25","date_gmt":"2019-12-30T06:35:25","guid":{"rendered":"https:\/\/blog.tickertape.in\/?p=322"},"modified":"2021-02-25T18:06:06","modified_gmt":"2021-02-25T12:36:06","slug":"5-no-nonsense-personal-finance-books-to-read-to-safeguard-your-wealth","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/5-no-nonsense-personal-finance-books-to-read-to-safeguard-your-wealth\/","title":{"rendered":"5 No-nonsense personal finance books"},"content":{"rendered":"\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/can-we-have-an-sip-for-stocks\/\">Personal finance<\/a> books can be your best friends if you let them be. They are a treasure-trove of tried-and-tested best practices and can help you keep your finances sorted. From adopting healthy <a href=\"https:\/\/www.tickertape.in\/blog\/habits-to-fall-in-love-with-this-valentines-day\/\">financial habits<\/a>, managing your day-to-day monetary affairs and doing the dreadful money talk, these 5 <a href=\"https:\/\/www.tickertape.in\/blog\/personal-finance-significance-and-elements\/\">personal finance<\/a> books will help you live a secured financial life.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/5-no-nonsense-personal-finance-books-to-read-to-safeguard-your-wealth\/#1-Rich-Dad-Poor-Dad-What-the-Rich-Teach-Their-Kids-About-Money-That-the-Poor-and-Middle-Class-Do-Not-by-Robert-Kiyosaki\" title=\"1.&nbsp; &nbsp; Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert Kiyosaki\">1.&nbsp; &nbsp; Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert Kiyosaki<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/5-no-nonsense-personal-finance-books-to-read-to-safeguard-your-wealth\/#2-The-Richest-Man-In-Babylon-by-George-S-Clason\" title=\"2.&nbsp; &nbsp; The Richest Man In Babylon by George S. Clason\">2.&nbsp; &nbsp; The Richest Man In Babylon by George S. Clason<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/5-no-nonsense-personal-finance-books-to-read-to-safeguard-your-wealth\/#3-The-Intelligent-Investor-by-Benjamin-Graham\" title=\"3.&nbsp; &nbsp; The Intelligent Investor by Benjamin Graham\">3.&nbsp; &nbsp; The Intelligent Investor by Benjamin Graham<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/5-no-nonsense-personal-finance-books-to-read-to-safeguard-your-wealth\/#4-Money-Talk-by-Gail-Vaz-Oxlade\" title=\"4. Money Talk by Gail Vaz-Oxlade\">4. Money Talk by Gail Vaz-Oxlade<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/5-no-nonsense-personal-finance-books-to-read-to-safeguard-your-wealth\/#5-The-Millionaire-Next-Door-by-Thomas-J-Stanley-and-William-D-Danko\" title=\"5. The Millionaire Next Door by Thomas J Stanley and William D Danko\">5. The Millionaire Next Door by Thomas J Stanley and William D Danko<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-Rich-Dad-Poor-Dad-What-the-Rich-Teach-Their-Kids-About-Money-That-the-Poor-and-Middle-Class-Do-Not-by-Robert-Kiyosaki\"><\/span><strong>1.<\/strong>&nbsp; &nbsp; <strong><em>Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! <\/em><\/strong>by Robert Kiyosaki<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>That some people are filthy rich and others remain poor despite all\ntheir efforts has got a lot to do with their own minds. The mind, which is the\nsource of actions, controls everything that happens in life. This means, the\nrich do something very different from the poor, which is what the author Robert\nKiyosaki tells his readers in his book Rich Dad, Poor Dad. Mostly based on the\nstark differences between the approach that his biological poor dad and his\nbest friend\u2019s rich dad have towards finance, this book is a must-read if you\nare a beginner at managing finances and want to start off with a strong\nfoundation.<\/p>\n\n\n\n<p>Cutting to the core, Kiyosaki says that men are driven by two emotions: fear and greed that keep him from realising their potential to create wealth. Fear of risking and not fitting in with the world forces people to go to school and college, get a job, and secure their lives. Though this conventional way worked well in the past, it hardly fits in the present because formal education no longer guarantees job security. Further, greed makes people spend the hike in their income on living a higher standard of living, whereas, they should have been smarter and invested the difference in assets that generate cash flows.<\/p>\n\n\n\n<p>Kiyosaki also touches an integral part of human beings \u2014 \u00adthe mind \u2014\nthat directs the way you manage your finances. One particular excerpt that\nbrings out this essence is asking \u2018How can I afford something?\u2019 instead of\nsaying \u2018I can\u2019t afford it.\u2019 Says the author, while the question pushes your\nmind to think of ways to make more money and afford something you can\u2019t, the\nstatement shuts your mind altogether, not allowing you to explore your\npotential to look for ways to afford that which you want.<\/p>\n\n\n\n<p>Another pillar of personal finance that the book covers beautifully is the risk. Instead of avoiding risk, Robert asks the readers to manage it and says that it is the only way to earn returns and generate wealth. He substantiates the fact by pointing out that the rich are not afraid of taking on risks, and the result is that they accumulate wealth greater than the poor. Kiyosaki also reveals that understanding the difference between money and the source of money is paramount to accumulate wealth. While the poor concentrate on making money, which they get through a paycheck month on month, the rich, focus on finding a source of money that generates returns even when you are not around.<\/p>\n\n\n\n<p>The rest of the book is peppered with personal finance rules and best moves that the rich follow. The author also speaks of the significance of being financially literate and understanding the basics of risk, assets, and liabilities. Two notable lessons here are:<\/p>\n\n\n\n<ol><li>Genius is in knowing that everything is risky, you can never run away from it, but only manage it<\/li><li>An asset is that which generates cash flow and a liability is anything that eats into your earnings<\/li><\/ol>\n\n\n\n<p>All in all, in his book Rich Dad, Poor Dad, Kiyosaki writes that you only achieve what your mind allows you to. If you want to finish rich then think, act, and live as the rich do, but first <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> in your financial literacy. Doing this will help you make informed decisions and accumulate wealth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-The-Richest-Man-In-Babylon-by-George-S-Clason\"><\/span><strong>2.<\/strong>&nbsp; &nbsp; <strong><em>The Richest Man In Babylon<\/em><\/strong> by George S. Clason<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Written in 1926, The Richest Man In Babylon by George S. Clason is a\nmust-read book to access a treasure trove of knowledge on personal finance that\nfinds application even in today\u2019s modern era. The book is a compilation of\ninteresting parables based on life in the ancient city of Babylon, the richest\ncity at the time. The classic narrates timeless lessons on aspects of personal\nfinance like thrift, financial planning and awareness, wealth creation,\nmaintenance and multiplication, which form the foundation of financial literacy\nand gives valuable insights on how to manage money.<\/p>\n\n\n\n<p>George delves deeper and says that wealth creation results from saving\nbefore spending, embracing frugality, keeping expenses in check, providing for\nemergencies, investing savings in a diversified portfolio, and managing debt\nwisely. Besides core financial lessons, the author also throws light on the\npower of determination and how it paves the way to achieve what you wish. In\naddition, Clason also emphasises the role that the compounding power of money\nplays in accumulating wealth for retirement.<\/p>\n\n\n\n<p>Another noteworthy lesson that you can learn from this classic is the importance of investing in yourself, which increases your knowledge, value and employability, and thus enhances your earning ability. The lesson here is simple, the more you offer, the more wealth you seek. To round up, The Richest Man In Babylon not only teaches how to earn, but also offers lessons on how to grow your money and manage it smartly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3-The-Intelligent-Investor-by-Benjamin-Graham\"><\/span><strong>3.<\/strong>&nbsp; &nbsp; <strong><em>The Intelligent Investor<\/em><\/strong> by Benjamin Graham<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Written in 1949 by Benjamin Graham, the mentor of Warren Buffett, The\nIntelligent Investor is considered as the <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/\">stock market<\/a> bible that is a\nmust-read if you are looking to learn the basics of investing. In this book,\nGraham speaks extensively on <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-value-investing\/\">value investing<\/a>, a method that advocates investing\nin underpriced stocks, ditching the herd and instead basing your investment\ndecisions upon a sound financial analysis, and staying invested for a\nlong-term.<\/p>\n\n\n\n<p>Throughout the book, Graham has penned nuggets of value investing,\nstarting with the difference between a speculator and an investor. Knowing who\nyou are is the foundation to formulating an investment strategy that works best\nfor you and the reason is simple. Speculators mostly rely on market timing and\ninvestors on <a href=\"https:\/\/www.tickertape.in\/blog\/a-step-by-step-guide-to-fundamental-analysis\/\">fundamental analysis<\/a>. He then highlights 6 principles of\ninvesting, which are summarised in the following stanza.<\/p>\n\n\n\n<p>To realise gains, speculators time the market, but investors, on the\nother hand, should do fundamental analysis, formulate a long-term investment plan, pick\nfairly-priced stocks, maintain a <a href=\"https:\/\/www.tickertape.in\/blog\/margin-requirements\/\">margin<\/a> of safety, and follow the strategy\nirrespective of the market fluctuations.<\/p>\n\n\n\n<p>In elaborate words, as an investor, it is important to invest in businesses you believe in and whose stocks will grow in value and not just price overtime. This means that instead of considering a hike in the stock price as a gain, which may or may not happen in the future, it is wise to consider the dividends and profits as earnings. He also advises the readers to maintain a margin-of-safety to mitigate risk and preserve the capital and not run behind a rise in share prices. Lastly, he asks the investors to steer clear from following the <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-market-sentiment-and-how-to-analyse-it\/\">market sentiment<\/a> and instead have faith in their fundamental <a href=\"https:\/\/www.tickertape.in\/blog\/stock-analysis\/\">stock analysis<\/a> and stick to their strategy for a long-term.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4-Money-Talk-by-Gail-Vaz-Oxlade\"><\/span><strong>4. <em>Money Talk<\/em><\/strong> by Gail Vaz-Oxlade<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Personal finance is not only about earning money and accumulating\nwealth, but also talking about money with your loved ones. That is to say,\nkeeping them in the loop when it comes to financial matters. More often than\nnot, money and relationships don\u2019t go well together as it gives birth to\ncomplications.<\/p>\n\n\n\n<p>For instance, you were entitled to ask your parents for money when in\nschool, but seeking financial aid as a grown-up to pay your debts is rather\nundesirable. Similarly, seeking monetary help from children is not a simple\ntask for retired parents and asking your close bud to repay the money you lent\nis something you would last want.<\/p>\n\n\n\n<p>Other instances when \u201cmoney\u201d creates a tiff between people include\nasking your spouse to limit spending, asking your children to take care of\ntheir expenses and save. Such instances knock down the best of us, because the\ntoughest money problem, as the author says, is the people you love.<\/p>\n\n\n\n<p>At such times many questions like how to approach people, how to\ninitiate the talk, what questions to ask, and how to refuse knock down the best\nof us. Thankfully, Gail Vaz-Oxlade, the author of Money Talks, seems to have\nanswers to all your questions related to money talks.<\/p>\n\n\n\n<p>In her book, Gail has penned over 75 scenarios based on Canadians. Each of these anecdotes narrate how human traits like selfishness, fearfulness, tyranny, and laziness dominate a person during money talks and impact a relationship. To summarize, Gail points out that human behaviour and not money create tiffs. Through her book, Gail encourages you to compare your story with the ones in the book, reflect and draw inspiration to talk money with loved ones effectively. Read Money Talks to find answers to the most difficult questions relating to money talks and negotiate with your loved ones to get your desired outcome.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5-The-Millionaire-Next-Door-by-Thomas-J-Stanley-and-William-D-Danko\"><\/span><strong>5. <em>The Millionaire Next Door<\/em><\/strong> by Thomas J Stanley and William D Danko<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Some of the most flawed perceptions about millionaires are that they\ninherit riches from ancestors and accumulate so much wealth that allows them to\nspend lavishly without thinking twice. Nevertheless, most millionaires are\nself-made men and women who manage their finances outstandingly well. The\nMillionaire Next Door by Thomas J Stanley and William D Danko is an excellent\nbook that shatters various myths relating to millionaires.<\/p>\n\n\n\n<p>Based on the extensive research conducted by the authors, this book\ndoesn\u2019t teach you how to be a millionaire, instead, it gives you a tour of how\nAmerica\u2019s millionaires think and live. The authors have penned this book after\ninterviewing more than 500 millionaires and conducting over 1,000 surveys. The\nstudies, listed below, are surprising and contrast what an average middle-class\nperson perceives about a millionaire:<\/p>\n\n\n\n<ol><li>Millionaires live a modest lifestyle and put financial independence above social status<\/li><li>They are thrifty people who operate their household based on an annual budget<\/li><li>They save generously, invest it and capitalise on market opportunities<\/li><li>They are mostly self-employed (20% are employees) and do what they love and use time, energy, and finances efficaciously<\/li><li>Neither did they receive financial aid from their parents nor do they give any to their adult children<\/li><\/ol>\n\n\n\n<p>Read The Millionaire Next Door if you want to live in a millionaire\u2019s\nmind, understand their secrets of living and money, and implement them in your\nlife to be one of them.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>5 handpicked personal finance books that teach you to take control of your finances<\/p>\n","protected":false},"author":27,"featured_media":350,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[8,1735],"tags":[],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2019\/12\/Five-Books-to-Manage-Personal-Finance-1-scaled.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/322"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=322"}],"version-history":[{"count":11,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/322\/revisions"}],"predecessor-version":[{"id":2399,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/322\/revisions\/2399"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/350"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}