Best Books to Boost Your Financial Literacy

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Financial literacy is one of the most important knowledge to have in modern times. Before we get into the list of the books, let us get a background of what exactly do we mean by financial literacy and why is it so crucial.

What Is Financial Literacy?

Financial literacy is nothing but the knowledge and ability to understand the various concepts of financial management such as investing and budgeting etc. and use these concepts to make intelligent and informed financial decisions to attain the maximum return on investment in personal lives.

Why Financial Literacy Is Important?

There is a major misunderstanding when we talk about financial literacy that only people coming from developing and developed backgrounds face this problem but on the ground level, this is not the case. 

A large number of populations in developed countries also happen to be financially illiterate and in lack of information and knowledge, they make bad financial decisions that cause distress!

Financial literacy is something that can have a huge impact on any person’s future. If we know how to spend our money in the best possible way then that would make us more financially secure in the future.

Being financially educated will show us the significance of planning and saving. We will not simply squander our cash for over the top expensive devices, garments, vehicles, sacks, shoes, and different things that we do not generally require. 

We can all the more likely comprehend between our needs and needs and can organize things as indicated by their embodiment in our day-by-day lives.

Procuring an excess of debts can place us in a tough situation. On the off chance that we are monetarily educated, we can decide how much credit we can stand to pay, particularly if we have bills for home loans and protections. 

This will likewise prepare us to get ready for our youngsters' training and their future needs, just as for medical and emergency clinic bills, without loaning cash.

We may experience moments of crisis wherein we need money or cash to endure our financial and passionate emergencies. On occasions such as this, being monetarily educated will spare us the difficulty of getting cash loans and other debts that will simply bring us more issues.

Putting money into stocks and making salary streams other than our pay rates are aftereffects of budgetary proficiency. Depending on only one source of pay will generally keep us in a position where we make a decent living only without saving much. 

Making different pay streams will give us the certainty that we can endure budgetary emergencies while saving enough for future monetary requirements.

So here are some books you can use to boost your financial literacy.

1. From the Rat Race to Financial Freedom by Manoj Arora 

Mr.Manoj Arora is an engineer and a gold medalist from Aligarh Muslim University. This book has a very simple language and is written while keeping the common man in mind who has very little knowledge of core finance.

Your total assets or your economic wellbeing does not characterize success. It does not make a difference the amount you acquire, what makes a difference is money you can spare and invest shrewdly. The key to financial freedom is learning the fundamental ideas of good financial planning and having the right attitude. 

But how can one accomplish this? The book answers this question. A person who has no experience with finance and wants to start his journey in financial literacy, this book is a perfect fit.

2. Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter 

This book mainly talks about the thinking pattern of how two different people think and the effect those thoughts have on their financial condition. 

Rich Dad Poor Dad is Robert's account of growing up with two fathers — his genuine dad and the dad of his closest companion, his "rich father" — and the manners by which the two men molded their thinking about cash and savings. 

The book detonates the fantasy that you have to acquire a high pay to be rich and talks about the difference between working for money and having your money work for you. It is a great book that helps to develop one’s perspective.

3. The Intelligent Investor by Benjamin Graham 

It won’t be wrong to put this book in the list of one of the most popular books in the arena of investing and finance. 

INVESTOPEDIA, a popular website in the field of finance has said – “Serious physicists read about Sir Isaac Newton’s theories about gravity and motion. And serious investors read Benjamin Graham’s Books teachings about finance and investment.” 

This book was published in 1949, but the strategies and knowledge available in this book are relevant until date. This is one of the first books you should be reading while entering the field of investing and finance.

The Richest Man In Babylon by George Samuel Clason – This is another classic in this field, authored in 1926. It is focused mainly on personal wealth and personal achievements. Great lessons of financial planning have been taught in this book, which has helped many people. 

The concepts included in this book are still relevant today, even after so much change in the financial system of the world. This book has a simple language and you don’t need a finance background to understand it. Again, a great choice if you have begun reading in this area.

4. Stop Acting Rich by Thomas Stanley 

This book is focused on the buying patterns of people. This book revolves around the message “lasting wealth and happiness is rarely found through buying expensive things”. This book talks about what many people call ‘a defensive strategy for tough times.’ 

This book teaches us how to accumulate wealth and stop spending on unnecessary things. If you want to develop a good buying habit, which is an integral part of financial strategy, then this is the book for you. 

Written by - Chandan Kumar

Edited by - Rudransh Khurana

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