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5 valuable finance Books to grow your wealth

To create a mindset that benefits our lives having a money mindset is valuable to progress in life. Whether you like it or not money is needed to live the minimum standard of living to an unlimited lifestyle. That’s why getting your money right is an important part of anyone’s journey. My 5 valuable finance books to grow your wealth will help you in my many areas of finance. I hope one of these books can give you as much help as it has me.

I’ve been told to read a finance a book a year as a minimum to progress myself with the understanding of finances. So far I’ve been able to read at least 1 per year. This has helped me greatly to build up my financial IQ.

My favourite 5 Finance Books Beginners

1. Rich Dad Poor Dad

This is a popular book in the financial world. Written by Robert Kiyosaki. Rich Dad Poor Dad helps you to understand the different mindsets from the poor to the rich. It allowed me to see the mindset I would need to transform my wealth to a rich standard.

He states that 95% of the world are either employees or self-employed and 5% are either businessman or investors. With this 95% of the worlds, wealth lies with the businessman and investors and 5% with the rest.

This was a real eye-opener and amongst a lot of his teachings, he helps you to understand that you can form better methods to grow your wealth. Here are just 4 of his wisdom when it comes to money mindset.

Most people work for money —rich people have money work for them.
It’s not how much money you make that matters — it’s how much money you keep.
Rich people acquire assets — not liabilities they think are assets.
Working all your life for someone else can lead to financial struggle

2. I Will Teach You To Be Rich

I read the second edition revised by Ramit Sethi. This book I will teach you to be rich describes itself as a 6-week program to a rich life. After reading this it was great to see a lot of the information I was already applying. If this was the first financial book I read this would have given me a major headstart in life. After learning about a rich mindset with think and grow rich this book will teach you all there is to get your money right in simple steps. He breaks downs everything from setting up your bank account, avoid or get out of debt to building your wealth within the stock market. For any novice to finances from start to finish, this was a clear and enjoyable read.

3.The Intelligent Investor

This book is all about being an intelligent investor where you learn so much about investing and what strategies are right for you. This book is highly recommended by Warren Buffet and when reading I can see why. It’s a hard read at first if you know nothing about this world but after a while, you start understanding it a lot clearer.

A massive bonus is after every chapter Jason Zweig translates Benjamin Graham’s message into a clear understanding for the modern age. Because of this, my wealth transformed tenfold all because he translated it clearly.

4. Think And Grow Rich

Think and grow rich doesn’t teach you about how to beat the market or how to get out of debt. The most important teaching is having the mindset you need to grow rich. This book has changed so many countless lives with its valuable lessons and continues to be relevant today. This is a must-read for anyone who wants to get in the right mindset to grow there life personally and financially.

5. The Richest Man In Babylon

This book compiles many stories from the Babylonian era. The lessons within these stories still stand up today in the 21st century. It a very small book in comparison to others but effective none the less. This book helps with understanding and teaches you 7 valuable lessons.

Pay Yourself First.
Live Within Your Means.
Put Your Money to Work.
Keep Your Money Safe.
Be a Homeowner.
Insure Your Future Income.
Improve Your Skills to Earn More Income.

Every one of these lessons can help you become wealthy and a quote I loved in this book was “Men of action are favoured by the Goddess of good luck” Which mean that you create your own luck in life and if you want to be wealthy you have to take the right action to get there.

Final Thoughts

For now, these are my favourite books that have transformed my money mindset and overall wealth to this date. It has allowed me to have things in place where my money works for me not the other way around and established systems to allow my money to grow automatically. This has allowed me to focus more on family, travelling, living a life of purpose and giving back without worrying about money.

Let me know what you think of these 5 valuable finance books to grow your wealth or whats your favourite finance book that changed your life. I would love to hear.

By Adam Smith

What’s It All About

The blog post today is The Importance Of Investing Your Cash For Returns which cannot be understated. After reading you will know what i did when it came to invested and who and where i learned this from. These Experts have helped me get my money right which is another part of having a future mindset.

What do you know about investing?

The question you have to ask yourself sometimes is what do I know about a subject. Are the beliefs I’ve had my whole life holding me back? I asked this same question when it came to my finances.

One question I asked was what do I know about investing in the stock market? My answer was it’s risky and complicated. It was proved right at first during brief research where new words like bear market, index funds or yield made it hard to understand at first. I could see why many people stay clear of investing their money in the stock market for this reason.

It came to me that It’s just the same as chess or any sport that people don’t understand. They stay way clear of it but when you understand how it works that’s when the enjoyment of it skyrockets. This is the same with finances when you know how to make it work in your favour. It’s an enjoyable experience.

Research Is Important

The first thing I needed to do which everyone reading this should do is to understand everything you possibly can about finances and how to invest your hard-earned money. I did this through books like The Intelligent Investor, I Will Teach You To Be Rich and Rich Dad Poor Dad. Podcasts where a great help as well and one, in particular, was the podcast I Am So Money by Farnoosh Torabi who had countless guests on about investing in the stock market and how it helped them retire and brought them great wealth.

All these platforms I used helped me to gain the information I need on investing. From everything, I researched there was one way that stud out and that was investing in an index fund. A low-cost way of investing your money not just into one company but a numerous amount is done by a computer system with the sole intention not to beat the market but to match it to get a return. For example, the S&P 500 which has the 500 biggest companies in America has averaged between 10% to 11% yearly return since it’s inception. This compared to banks who offer less than 1% on current accounts and less than 3% at best on savings accounts which is a lot effort to keep changing bank accounts every year if there is a good deal.

Why You Should Invest?

On paper, this is no brainer of where to put your money to gain the biggest returns. Unfortunately, we are not taught this in conventional education. The main reason why anyone should invest is that if you were to leave your money with the bank you will lose money through inflation. The banks themselves know investing is important as they will use your money to invest in the stock market without you knowing. So investing your money where you can receive a return is an important step to gain the biggest return and make your money work for you.

Compound Effect

The earlier you start the better as the compound effect is a major impact on how much you will have in the future.

For example

Oliver invests £6,000 per year beginning at age 20. At age 30, she stops. She has invested for 10 years and £60,000 in total
Harry invests the same £6,000 but begins where Oliver left off. He begins investing at age 30 and continues the annual £6,000 investment until he retires at age 60. Harry has invested for 30 years and £180,000 in total.
Amina is our most diligent saver. She invests £6,000 per year beginning at age 20 and continues investing until retirement at age 60. She has invested for 40 years and a total of £240,000.

When they all reach the age of 60. You have Oliver and Harry who have invested in an index fund with an average return of 8% per year and Amina who just left her money in the bank.

This is there final calculations of where their money would be with the actions they have taken.

Oliver who stopped investing at 30 would have £1,006,993

Harry who started 10 years later than Oliver but carried on investing until 60 would have £750,147

Amina who just saved in a normal bank account would still just have £240,000

This show how important saving and investing your money as early as possible can have big returns for your money.

Final Thoughts

Unfortunately, I am Harry in this who has started at 30 years of age but I’m still in a way better position than if I was just to save and leave my money to sit in the bank.

Hopefully, this is an eye-opener for someone reading this and I recommenced the books and podcast above to listen to first. The numbers don’t lie and when you get your money right, everything else in your life becomes that much easier.