Juggling your finances is one of the most important things you must do as an adult. For instance, making credit card mistakes that can cost you a great deal of money is the last thing you want to happen while our economy is recovering from the pandemic.
While it’s understandable to not have a deep knowledge of financial management, arming yourself with essential lessons and examples to successfully do it is critical to your success.
And you don’t have to wait for the New Year to get started on financial management. There is plenty of literature that can teach you everything you need about financial freedom as more Filipinos become interested in gaining financial stability.
In this post, we’ll let you in on the best books that can help you get started on your journey to financial security. We’ll also provide you with pointers for managing your finances better.
6 Best Financial Books to Read Before 2021 Ends
- Rich Dad Poor Dad by Robert Kiyosaki
You’ve probably encountered Robert Kiyosaki’s name at least once in your life. His highly popular book Rich Dad Poor Dad is considered one of the most important financial literacy books that you can read, and for good reason. The lessons the American businessman learned from the different approaches his father and his friend’s dad helped him in his adult life.
Pick up this book if you want something relatable to get you started on your financial freedom journey.
- Investing 101: From Stocks and Bonds to ETFs and IPOs by Michele Cagan
One of the most important aspects of financial freedom is making sound investments. With multiple options ranging from stocks to cryptocurrencies and NFTs, it’s critical to at least have an operating knowledge of how investments work before you make a move.
Michele Cagan’s Investing 101 is the perfect guide to get you started on investing. While it’s not the end-all-be-all cheat sheet to investments, it provides you a clear picture of what you can expect when you get into the world of investments.
- MONEY Master the Game: 7 Simple Steps to Financial Freedom by Tony Robbins
If you want to get concrete steps that you can apply right away, this book by Tony Robbins is the right place to go. The American life coach interviewed various investors like Warren Buffet to create a seven-step strategy to controlling your finances.
- Broke Millennial by Erin Lowry
You can read this finance book that’s more relatable to the younger generation. Using witty language and hashtags like #GYFLT (read: get your financial life together) to send the message across, Erin Lowry aims to help you and other young professionals get your finances sorted.
- Dollars and Sense: How We Misthink Money and How to Spend Smarter by Dan Ariely and Jeff Kreisler
Sometimes, a cerebral approach can help you understand the finer nuances of finance. While it’s hard to be pragmatic about your finances, Dollars and Sense aims to help you get over the emotional hump and make smarter decisions about your money.
Dan Ariely and Jeff Kreisler engage the topic with the right mix of science and entertaining examples to help explain the concept. This is a must-read to help you understand your spending habits and control your cash flow.
- The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel
Morgan Housel’s The Psychology of Money reveals how our emotions and ego can push us to make certain decisions about money. This book offers another scientific foray into finance through 19 short stories. These stories will expose the psychological aspects that come with handling your finances.
Managing Your Finances: Credit Card
After reading these six books, it’s time to put your learnings to practice. One of the things you must take special care of is your credit card use. While these cards can help you maintain your finances in a bind, careless usage can lead to unnecessary debt.
Take control of your credit card finances by practicing constraints with your credit card use. Here are some tips that can mitigate the amount of money that you will pay via credit card.
- Pay off your balance every month. When possible, pay the total amount owed to your credit card company to avoid paying interest on your card every month, which is what happens when you only pay the minimum monthly payment.
- Never skip a payment. Make sure to pay your bill every month if you don’t want to get punished with late fees on top of your interest rates.
- Use your card for your needs, not your wants. It can be tempting to swipe your credit card on devices and things that you want. However, having full control of your finances means using your card for the most necessary purchases.
- Stay below your credit card limit. If you can’t avoid using your credit card, make sure that you spend below the limit of your card. You’ll be paying the bank more if you go over your credit cap.
Achieve Financial Freedom Today
Gaining full control of your finances is something that everyone deserves, regardless of their age or status. Reading relevant books and applying what you learned from them are effective ways of securing your financial future.