5 life-changing books about money everyone should read in 2021

books about money

Photo: Unsplash/Syd Wachs

Most people want to be rich but not many educate themselves on how to do this. I decided to be more intentional about financial education this year, so I’m reading more books about money. Reading classic books will first of all work on your mindset and get you started on the journey to building wealth. 

Here are 5 top books about money I believe everyone should read: 

1. The Richest Man In Babylon

I’ve read this book five times, it’s that good. I love the fact that it teaches life lessons through stories. It’s a really enjoyable read and if you apply the principles within, you will start your journey to wealth.

The major lessons that stood out for me in the book are that you need to live within your means and save part of your income to invest. You should also do what it takes to improve your skills and increase your earning capacity.

My favourite quote from the book is “Opportunity is a haughty goddess who wastes no time with the unprepared.”

2. Rich Dad, Poor Dad

This classic book is a winner for many reasons. It also uses the power of storytelling to explain that wealth is connected to life choices. Poor people expect the government and their employers to take care of their financial obligations and they complain when they get disappointed. Rich people on the other hand take their destinies into their own hands and take the risks necessary to build wealth.

The major highlight for me was finding out the difference between an asset and a liability. An asset makes you money and a liability costs you money. I always thought a house was an asset, but I realized that it can be a liability if you don’t have the means to fund it. It’s best to gather assets first and then use the income from them to fund your liabilities. 

For example, instead of buying a 5 bedroom house as my first home, I’ll acquire property I can rent out and then use the income from my tenants to pay for and maintain my home. 

My favourite quote from the book is “There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.”

3. You’re a badass at making money

This book isn’t as popular as the others but it’s life-changing all the same. The biggest takeaway for me is that many people are broke by choice. They believe they don’t have what it takes to make money, so they spend their lives complaining and justifying why they’re poor. They claim they don’t want money and attack those who make it. 

The author, Jen Sincero, used to be like that until she had a mindset shift. The core message of the book is that we all have what it takes to create wealth. You’ll need to take responsibility for building a new life and dump your excuses, but you’re just as capable as anyone else. Accept that you need money and then figure out what you need to do in your own unique way to get it.

My favourite quote from the book is “Time wasted rationalizing the mediocre could be time spent creating the magnificent.”

4. Think and grow rich

Think and Grow Rich is based on the principle that if you desire wealth strongly enough and take the necessary steps, you’ll get it. It’s all about cultivating the right mindset, thinking the right thoughts and taking the right actions.

The author, Napoleon Hill, believes that if you have enough clarity about your goals and are obsessed with attaining them by a specified time, you will be unstoppable. 

His six steps for acquiring wealth are:

1. Be specific about the exact amount you want

2. Decide what you’ll do to get the money

3. Choose a definite deadline 

4. Create a plan and take action at once

5. Write out a statement with the steps above

6. Read your statement twice a day, when you wake up and before you sleep.

As you read it, imagine how your life would be when you have the money and believe you already have it.

My favourite quote from the book is: “Wishing will not bring riches.”

5. The science of getting rich

What stood out for me in the science of getting rich was the author, Walter Wattles’ argument that nobody can live a full life without wealth. 

The book is very similar to Think and Grow Rich but it’s worth a read as well.    The author talks about the need to think like a rich person in order to attract physical wealth. So according to him everything that will be created must first start in your thoughts. 

He also encourages readers to avoid competition and focus on creating value instead. This is based on the abundance mindset. If you believe there’s more than enough wealth to round you won’t try to compete with others or cheat them out of their own money. When you create, you add value, and money flows in the direction of value. 

Just like Think and Grow Rich, he talks about the importance of desire as a catalyst for creating wealth. He also emphasizes the need to take action and use your willpower to make your desires a reality. 

My favourite quote from the book is: “Whatever may be said in praise of poverty, the fact remains that it is not possible to live a really complete or successful life unless one is rich.”

The major learning from all these books about money is that wealth starts in the mind. Rich people think a certain way and those thoughts lead them to behave in a different way. So the first place to start if you want to create wealth is in your mind. 

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