💥 Powerful Lessons from the Best Books on Money
💥 Before age 40, you need to read these books.
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📬 In today’s issue, we discuss:
1. Why are These Books Important?
2. Most Important Lessons from These Books
3. Actionable Advice from These Books
4. 100 Lessons from the Best Books on Money
5. Where Should YOU Start?
6. Your 2025 Money Plan
7. Final Thoughts
8. Commonly asked questions on MoneyBefore we get into it, 3 quick announcements!
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Money matters. Yet, many of us never learn about money in school.
In fact, a lot of people struggle with money simply because they never learned the right lessons.
But you can change that. Reading the right books can fill in the gaps.
Reading personal finance books is one of the best ways to learn practical tips that you can use every day. Financial education is an investment in yourself that pays lifelong dividends.
In this issue, I’ll share powerful lessons from the best money books, show you why they are important, and give you an easy plan to follow for financial success in 2025 and beyond.
🤔How do you feel about your money?
1. Why are These Books Important?
They can help you change your life. Here’s how they work in the long term:
Knowledge is Power: The more you learn, the better decisions you can make. Financial education is a lifelong process.
Mindset Matters: Understanding your money mindset can help you avoid common pitfalls like overspending or fear of investing. When you know why you act a certain way with money, you can change for the better.
Planning Leads to Freedom: With clear goals and a solid budget, you take control of your life. Financial independence is not about earning the most money; it is about making smart choices with what you earn.
Small Habits Build Big Wealth: Even saving a little bit each day can lead to a large retirement fund. The power of compound interest is a simple math trick that works wonders over time.
Debt is a Burden You Can Overcome: Following a step-by-step plan to tackle debt will free you from financial stress. When you eliminate debt, you can invest more in your future.
Investing is for Everyone: Even if you are not a finance expert, simple investing strategies like index funds and automatic investments are designed to work for ordinary people.
A Balanced Life is Key: Money is a tool. When you spend wisely and invest smartly, you can enjoy a rich life without the stress of financial uncertainty.
2. Most Important Lessons from These Books
Building wealth takes time and smart choices. You don't need fancy tricks or complicated plans. Start simple, stay consistent, and focus on the long term. Here are the key points to keep in mind:
Money is more than just numbers. It's about your habits, your mindset, and even a bit of luck. Understanding the psychology behind money helps you make better decisions.
Investing doesn't have to be complicated. Stick with low-cost index funds and let your money grow over time. Automate your savings and investments to make it easy and stress-free.
Live below your means and save regularly. This is the secret of many millionaires. Every small step counts, so start today and stay consistent.
Get out of debt as soon as possible. Use methods like the debt snowball to pay off your smallest debts first and build momentum. A debt-free life is the first step to financial freedom.
Education is key to financial success. Read books, learn from experts, and stay updated. The more you know, the better decisions you can make.
Financial freedom is a journey, not a destination. Enjoy the process, celebrate your wins, and keep learning. Every step forward brings you closer to your goals.
3. Actionable Advice from These Books
Here's what you can do right now:
Write down your financial goals. Be specific about what you want to achieve. Do you want to save for a house, retire early, or travel the world? Put it on paper and make it real.
Create a budget. Track your income and expenses. Find areas where you can cut back and save more. Use budgeting tools or apps to make it easy.
Start saving and investing today. Open a low-cost brokerage account and set up automatic transfers to your savings and investment accounts. Even small amounts add up over time.
Pay off your debt. Start with the smallest debt and work your way up. Use the debt snowball method to build momentum and stay motivated.
Read one personal finance book. Pick a book from the list and start reading. Apply what you learn to your own financial situation. Share your insights with friends or family to stay accountable.
Review your progress regularly. Check your budget, savings, and investments every month. Adjust your plan as needed and celebrate your successes.
4. 100 Lessons from the Best Books on Money
The Psychology of Money by Morgan Housel
The Psychology of Money shows us that money is more than numbers—it is about our feelings and habits. Morgan Housel explains that smart money choices come from understanding how we think about money. He teaches that small savings grow over time and that our behavior matters more than complex math.
Important Lessons from "The Psychology of Money"
Money is More Than Numbers: Understanding money is about understanding yourself. Your habits, emotions, and past experiences shape how you handle money.
No One's Crazy: Everyone has different money goals and fears. What seems crazy to you might make perfect sense to someone else.
Luck and Risk: Luck plays a big role in financial success. Be humble about your wins and prepared for losses.
The Power of Compounding: Small savings can grow into big money over time. Start early and be patient.
Behavior Matters: How you act with money is more important than knowing all the fancy terms.
Save Money: The key to wealth is saving. The more you save, the more you can invest and grow.
Avoid Comparisons: Don't compare your financial journey to others. Focus on your own goals and progress.
Plan for the Long Term: Think about money in decades, not days. Long-term planning leads to better decisions.
Freedom is Key: Money should buy you freedom and options, not just stuff.
Stay Flexible: Be open to changing your mind when new information comes along.
The Simple Path to Wealth by JL Collins
The Simple Path to Wealth makes investing easy. JL Collins shows you that you don’t need a fancy plan to build wealth—just a simple one. The book tells you to save, invest in low-cost index funds, and think long term. It is a friendly guide that breaks down the idea of investing so anyone can do it, even if you are new to money matters.
Important Lessons from "The Simple Path to Wealth"
Investing is Simple: You don't need to be a genius to invest. Simple strategies work best.
Index Funds are Powerful: Invest in index funds for steady, long-term growth. They're easy and effective.
Start Early: The sooner you start investing, the more time your money has to grow.
Stay the Course: Don't panic when the market goes up and down. Stick to your plan.
Avoid Debt: Debt can hold you back from investing and growing your wealth.
Live Below Your Means: Spend less than you earn and invest the difference.
Automate Investing: Set up automatic investments to make saving easy.
Diversify: Spread your investments to lower risk. Don't put all your eggs in one basket.
Ignore the Noise: Don't get distracted by daily market news. Focus on your long-term goals.
Financial Independence: The goal is to have enough money to live the life you want without working.
The Millionaire Next Door by Thomas J. Stanley
The Millionaire Next Door reveals that many wealthy people live simple lives. Thomas J. Stanley shows that true wealth comes from careful habits, not from flashy spending. Millionaires often save more than they spend, live modestly, and invest wisely. This book teaches that by being smart with everyday choices, anyone can build wealth quietly over time.
Important Lessons from "The Millionaire Next Door"
Millionaires Aren't Flashy: Most millionaires live simple lives and don't show off their wealth.
Live Below Your Means: Wealth comes from spending less than you earn and saving the rest.
Focus on Assets: Millionaires invest in things that grow in value, not things that lose value.
Budget Wisely: Track your spending and cut out unnecessary costs.
Invest Smartly: Put your money in safe investments that grow over time.
Avoid Status Symbols: Don't waste money on fancy cars or big houses to impress others.
Work Hard: Most millionaires are self-made. They worked hard and saved a lot.
Teach Your Kids: Pass on good money habits to the next generation.
Plan for the Future: Think long-term and prepare for retirement.
Stay Humble: Wealth is about freedom, not showing off.
Get Good with Money by Tiffany Aliche
Get Good with Money is for anyone starting on the path to financial freedom. Tiffany Aliche explains how to budget, pay off debt, and save for the future using clear, step-by-step methods. The book is packed with worksheets and real-life examples that show you how to take control of your money.
Important Lessons from "Get Good with Money"
Budgeting is Key: Create a budget that works for you and stick to it.
Pay Off Debt: Tackle your debts one by one, starting with the smallest.
Build an Emergency Fund: Save money for unexpected expenses.
Invest Wisely: Start investing with simple, low-risk options.
Set Financial Goals: Know what you're saving for and why.
Automate Savings: Make saving money easy by automating it.
Celebrate Wins: Every small victory counts. Celebrate your progress.
Educate Yourself: Learn about money and investing. Knowledge is power.
Build a Dream Team: Surround yourself with people who support your financial goals.
Stay Motivated: Keep your eyes on the prize and stay motivated to reach your goals.
I Will Teach You to Be Rich by Ramit Sethi
I Will Teach You to Be Rich offers a 6-week program to automate your finances, save money, and invest smartly. Ramit Sethi breaks down complex ideas into simple steps. He tells you to automate your savings, spend freely on what you love, and cut back on the things that do not matter.
Important Lessons from "I Will Teach You to Be Rich"
Automate Your Finances: Set up your money to save and invest automatically.
Spend on What Matters: Cut costs on things you don't care about and splurge on what you love.
Invest Smartly: Choose low-cost funds and stick to your plan.
Negotiate Bills: Save money by negotiating lower bills and fees.
Focus on Big Wins: Make changes that have the biggest impact on your finances.
Create a Conscious Spending Plan: Know where your money goes and why.
Save for Retirement: Start saving for retirement early and often.
Build an Emergency Fund: Have money set aside for unexpected expenses.
Pay Off Debt: Tackle your debts with a clear plan.
Invest in Yourself: Spend money on things that improve your skills and earning potential.
Your Money or Your Life by Vicki Robin
Your Money or Your Life teaches you to see money as a tool to live a happy life. It shows you how to match your spending with your values and how to change your habits to save more. This book helps you understand that money is not just for buying things—it is for creating a life that matters. It also offers practical steps for tracking your income, cutting waste, and planning for the future.
Important Lessons from "Your Money or Your Life"
Mindful Spending: Spend money only on things that truly matter to you.
Value Your Time: Understand your real hourly wage and use it to make smart choices.
Track Your Money: Know where your money goes and why.
Reduce Expenses: Cut out unnecessary costs and save more.
Invest Wisely: Put your money in safe investments that grow over time.
Align Money with Values: Spend on what matters most to you.
Build an Emergency Fund: Save money for unexpected expenses.
Plan for the Future: Think long-term and prepare for retirement.
Achieve Financial Independence: Have enough money to live the life you want without working.
Live Simply: Focus on experiences and relationships, not stuff.
The Automatic Millionaire by David Bach
The Automatic Millionaire shows you how to build wealth without having to work hard on it every day. David Bach explains that setting up automatic systems for saving and investing can lead to a secure future. This book makes money management easy by teaching you to pay yourself first, so your money grows on autopilot. It is perfect for those who want a stress-free way to build wealth.
Important Lessons from "The Automatic Millionaire"
Pay Yourself First: Save money before you pay any other bills.
Automate Savings: Set up automatic transfers to your savings account.
Invest Wisely: Put your money in safe investments that grow over time.
Avoid Debt: Debt can hold you back from saving and investing.
Live Below Your Means: Spend less than you earn and save the rest.
Build an Emergency Fund: Save money for unexpected expenses.
Invest in Real Estate: Owning a home can be a good investment.
Retire Rich: Save and invest for a comfortable retirement.
The Latte Factor: Small savings add up to big money over time.
Stay Consistent: Make saving and investing a habit.
The Total Money Makeover by Dave Ramsey
The Total Money Makeover is a clear, step-by-step plan to get out of debt and build wealth. Dave Ramsey offers a simple plan that many people have followed to improve their finances. He teaches you to list your debts, pay them off using the debt snowball method, and then build an emergency fund.
Important Lessons from "The Total Money Makeover"
Debt Snowball: Pay off your smallest debts first to build momentum.
Emergency Fund: Save $1,000 for unexpected expenses, then build a larger safety net.
Budget Wisely: Create a budget that works for you and stick to it.
Pay Off Debt: Tackle your debts with a clear plan.
Save for Retirement: Start saving for retirement early and often.
Invest Wisely: Put your money in safe investments that grow over time.
Live Below Your Means: Spend less than you earn and save the rest.
Avoid Debt: Debt can hold you back from saving and investing.
Build Wealth: Focus on long-term financial goals.
Stay Motivated: Keep your eyes on the prize and stay motivated to reach your goals.
The Bogleheads’ Guide to Investing
This book teaches the simple and smart investing philosophy of John C. Bogle, the founder of Vanguard. It's all about low-cost index funds, diversification, and long-term investing.
Important Lessons from "The Bogleheads’ Guide to Investing"
Index Funds Build Wealth: Invest in low-cost index funds for steady, long-term growth.
Diversify: Spread your investments to lower risk. Don't put all your eggs in one basket.
Stay the Course: Don't panic when the market goes up and down. Stick to your plan.
Avoid High Fees: Choose investments with low fees to keep more of your money.
Invest for the Long Term: Think long-term and prepare for retirement.
Rebalance Your Portfolio: Adjust your investments regularly to stay on track.
Ignore the Noise: Don't get distracted by daily market news. Focus on your long-term goals.
Save Regularly: Make saving money a habit.
Invest in What You Know: Stick to simple, safe investments.
Plan for Retirement: Save and invest for a comfortable retirement.
The Little Book of Common Sense Investing by John C. Bogle
The Little Book of Common Sense Investing explains why investing in index funds is the best way to grow your money. This book makes investing very clear and simple—even if you are just starting out. It's the "common sense" way to build wealth.
Important Lessons from "The Little Book of Common Sense Investing"
Index Funds are Key: Invest in low-cost index funds for steady, long-term growth.
Stay the Course: Don't panic when the market goes up and down. Stick to your plan.
Avoid High Fees: Choose investments with low fees to keep more of your money.
Diversify: Spread your investments to lower risk. Don't put all your eggs in one basket.
Invest for the Long Term: Think long-term and prepare for retirement.
Ignore the Noise: Don't get distracted by daily market news. Focus on your long-term goals.
Save Regularly: Make saving money a habit.
Invest in What You Know: Stick to simple, safe investments.
Rebalance Your Portfolio: Adjust your investments regularly to stay on track.
Plan for Retirement: Save and invest for a comfortable retirement.
5. Where Should YOU Start?
You might wonder, "Where do I start?" Your answer depends on your personal money journey:
Changing Your Mindset
"The Psychology of Money" and "Your Money or Your Life" help you understand the emotional and behavioral side of money. They teach you to set clear goals, live below your means, and focus on what is truly important.
Advice:
Write down what “rich” means to you. Think about freedom, happiness, and security—not just a big bank balance.
Building a Simple Investment Strategy
"The Simple Path to Wealth," "The Bogleheads’ Guide to Investing," and "The Little Book of Common Sense Investing" show you that you do not need complex strategies to invest. A simple plan—such as putting money in low-cost index funds—is often the best.
Advice:
Decide on a fixed monthly investment in an index fund. Automate your investments so you never miss a payment.
Getting Out of Debt
"The Total Money Makeover" provides a step-by-step plan to eliminate debt and build an emergency fund. Reducing debt is a critical first step before investing.
Advice:
List all your debts and start with the smallest one. Follow Ramsey’s baby steps to build a safety net and eliminate debt.
Budgeting and Smart Spending
"Get Good with Money" and "I Will Teach You to Be Rich" help you create a budget and manage your money wisely. They show you how to spend on what matters while cutting costs on what doesn’t.
Advice:
Use a budgeting worksheet to track every dollar. Identify expenses you can cut, and redirect that money to savings or investments.
Automation and Consistency
Automation is a recurring theme in these books. Setting up systems so that savings and investments happen automatically is key to long-term wealth.
Advice:
Set up automatic transfers from your checking account to your savings and investment accounts. Review your accounts every few months to stay on track.
6. Your 2025 Money Plan
Now that you know which books to read, here is a simple plan to guide you through your financial journey in 2025:
Set Clear Money Goals
Begin with clarity: Write down what financial success means to you. Do you want to retire early? Buy a home? Travel the world? Be specific—say, “I want an emergency fund of $10,000 by the end of 2025” or “I want to invest $200 every month.”
Create a Realistic Budget
Make a plan for every dollar: List your income and track your spending. Identify areas where you can cut back. Use tools like worksheets or budgeting apps to keep things simple and organized.
Tackle Debt
Focus on one debt at a time: List your debts from smallest to largest. Pay off the smallest debt first while making minimum payments on the rest. Once the smallest is gone, roll that payment into the next debt. This will build momentum and clear your debts faster.
Automate Investments
Let technology help you: Set up automatic transfers from your checking account to your savings or investment accounts. This ensures that saving happens without you having to think about it every day.
Invest Regularly and Smartly
Stick to a plan: Choose low-cost index funds and invest a fixed amount every month. Avoid the temptation to time the market. Over time, the power of compounding will grow your wealth.
Learn and Adjust Continuously
Keep learning: Read one personal finance book at a time. Take notes, set small action items, and share what you learn with family and friends. Review your progress every month and adjust your budget and savings goals as needed.
Celebrate Your Wins
Every step counts: Even small victories are important. Celebrate each debt paid off, each milestone reached, and each new habit formed. This positive reinforcement keeps you motivated for the long run.
7. Final Thoughts
Top Lessons:
The Psychology of Money: Learn to control your emotions about money, save early, and understand your own money story.
The Simple Path to Wealth: Invest simply in index funds and think long term.
The Millionaire Next Door: Live modestly, track your spending, and invest wisely.
Get Good with Money: Create a clear budget, cut waste, and take small steps to pay off debt.
I Will Teach You to Be Rich: Automate your finances and spend on what matters most.
Your Money or Your Life: Align your spending with your values and plan for a stress-free future.
The Automatic Millionaire: Set up automatic systems that let your money grow on its own.
The Total Money Makeover: Follow a clear, step-by-step plan to eliminate debt and build wealth.
The Bogleheads’ Guide to Investing: Keep your investments low-cost, diversified, and simple.
The Little Book of Common Sense Investing: Invest in index funds, keep fees low, and stick to your long-term plan.
These books teach us that money is not about flash or instant riches; it is about making smart, steady choices over time.
The lessons are simple: save a little, invest regularly, and keep your spending in check. It is about transforming your mindset, setting clear goals, and taking control of your future.
Small habits lead to big changes. Every small step you take today will help build a better future. It’s not about being perfect today but about making progress every day.
Financial freedom is a marathon, not a sprint.
8. Commonly Asked Questions on Money
Why is understanding the psychology of money important?
Understanding the psychology of money helps you make better financial decisions. It's not just about numbers; it's about your habits, emotions, and mindset. By knowing how you think and feel about money, you can avoid common mistakes and build wealth more effectively.
What is the power of compounding?
Compounding is like a snowball rolling down a hill. It grows bigger and faster over time. When you save and invest money, it earns interest. That interest then earns more interest, and so on. Even small amounts saved regularly can grow into a large sum over time.
Why should I live below my means?
Living below your means is the key to building wealth. Spend less than you earn and save the difference. This habit allows you to save more, invest more, and prepare for the future. It's a simple but powerful way to achieve financial independence.
What is the debt snowball method?
The debt snowball method is a way to pay off your debts quickly. Start by paying off your smallest debt first, while making minimum payments on your other debts. Once the smallest debt is paid off, move to the next smallest, and so on. This method helps you build momentum and stay motivated.
Why are low-cost index funds a good investment?
Low-cost index funds are a smart and simple way to invest. They allow you to own a small piece of many companies, spreading your risk. Index funds have lower fees than other types of investments and are designed to grow over the long term. They're a great choice for beginners and experienced investors alike.
How can I automate my finances?
Automating your finances makes saving and investing easy. Set up automatic transfers from your checking account to your savings and investment accounts. This way, you save money every month without even thinking about it. Automation helps you stay consistent and build wealth over time.
What is financial independence?
Financial independence means having enough money to live the life you want without having to work. It's about freedom, security, and peace of mind. To achieve financial independence, you need to save, invest, and manage your money wisely. It's a journey that takes time, but it's worth the effort.
Why is it important to set clear financial goals?
Setting clear financial goals gives you a roadmap to follow. It helps you stay focused and motivated. Whether you want to save for a house, retire early, or travel the world, having specific goals makes it easier to achieve them. Write down your goals and review them regularly.
How can I create a budget that works?
Creating a budget helps you control your money. Track your income and expenses to see where your money goes. Look for areas where you can cut back and save more. Use budgeting tools or apps to make it easy. Review your budget regularly and adjust it as needed.
What is the best way to pay off debt?
The best way to pay off debt is to start with the smallest debt and work your way up. Use the debt snowball method to build momentum. Make minimum payments on your other debts, and focus on paying off one debt at a time. Once a debt is paid off, move to the next smallest.
Why should I invest in index funds?
Index funds are a simple and effective way to invest. They allow you to own a piece of many companies, spreading your risk. Index funds have lower fees and are designed to grow over the long term. They're a great choice for beginners and experienced investors alike.
How can I stay motivated to save and invest?
Staying motivated is key to building wealth. Set clear goals, track your progress, and celebrate your wins. Share your journey with friends or family to stay accountable. Read books, learn from experts, and stay updated on personal finance trends.
What should I do if I face a financial setback?
Financial setbacks happen to everyone. Stay calm, review your budget, and adjust your plan as needed. Look for ways to cut expenses and increase your income. Remember that setbacks are temporary. Stay focused on your long-term goals and keep moving forward.
How can I educate myself about personal finance?
Education is key to financial success. Read books, attend seminars, and follow personal finance blogs. Talk to friends, family, and financial advisors. Stay updated on the latest trends and strategies. The more you know, the better decisions you can make.
What is the first step to financial freedom?
The first step to financial freedom is to get out of debt. Use methods like the debt snowball to pay off your smallest debts first and build momentum. Once you're debt-free, start saving and investing for the future. Financial freedom is a journey, so enjoy the process and celebrate your wins.
How can I align my spending with my values?
Aligning your spending with your values helps you live a more fulfilling life. Think about what truly matters to you. Cut back on expenses that don't add value to your life. Spend more on experiences and things that bring you joy. Review your budget regularly and adjust it as needed.
What is the biggest mistake people make with money?
The biggest mistake people make with money is not having a plan. Without a plan, it's easy to overspend, take on too much debt, and miss out on opportunities to save and invest. Set clear financial goals, create a budget, and review your progress regularly. Stay focused on your long-term goals and avoid impulsive decisions.
How can I build wealth over time?
Building wealth takes time and smart choices. Start by living below your means and saving regularly. Invest in low-cost index funds and let your money grow over time. Automate your finances to make saving and investing easy. Stay consistent, review your progress regularly, and celebrate your wins.
What is the key to financial success?
The key to financial success is consistency. Make saving and investing a habit. Automate your finances, review your progress regularly, and stay focused on your long-term goals. Educate yourself about personal finance and stay updated on the latest trends. Celebrate your wins and enjoy the journey to financial freedom.
💬 What else would you add? Comment below and share your opinion!
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Any book recommendations to read before 60? I have four years to go. 😬
https://nynewspress.com/substack-ceo-chris-best-bans-journalist-richard-luthmann-proving-his-free-speech-claims-are-a-fraud-writers-beware-substack-isnt-safe/