The Best Books On Personal Finances Ever Made

Personal finance is a very important matter. Whether you take care of your finances or not, you have some degree of personal finances. As with most people, the goal is to have more money later (than less) and to have it sooner (than later). Personal finance is a journey that is not just about the accumulation of wealth. It is also about charitable giving and other acts of giving.

Building wealth and your personal finances requires a whole new set of skills that will allow you to transform and change your money habits to the better. These books are not perfect. In fact, there are some aspects that I do not completely agree with. As a whole, they lay the foundation of becoming a better handler of money.

1) The Total Money Makeover by Dave Ramsey
2) Rich Dad, Poor Dad by Robert Kiyosaki
3) The Richest Man in Babylon by George Clason
4) The Millionaire Next Door by Thomas Stanley and Richard Danko
5) Think and Grow Rich by Napoleon Hill
6) Acres of Diamond by Russell Conwell
7) The Science of Getting Rich by Wallace Wattles
8) The Greatest Salesman in the World by Og Mandino
9) Financial Peace by Dave Ramsey
10) The Automatic Millionaire by David Bach

Upon reading and practicing the principles in these books, I incorporate it into my family’s life as much as possible. Also, I see it being practiced by my mother-in-law for many years especially the concept of using envelopes to properly allocate money in every day expense such as groceries, charitable giving, etc. In my book, Nanay: Lessons from a Mother, I wrote about how she lived on that principle her whole life without using any credit cards.

Personal Finances and How to Manage Them

They say money can’t buy you happiness, but it provides you comfort in life. Worries over financial matters in the family can increase tension. Managing your personal finances can save you and your family from a lot of trouble. Here are areas you have to bear in mind and why you should manage your personal finances:

  • Necessities of the family. You have to save money so that you can buy groceries and other personal necessities of yours and your family, and to be able to tend to other things such as water and electricity bills, maybe school tuition of your kid, school supplies, fixtures, fixture repairs and the like.
  • Unforeseen Casualties. One should be prepared when it comes to floods, accidents, death, failing health and the like. Acquire insurance for these. There are some cases in which these casualties are self-insurable; however most require that you sign an insurance contract.
  • Tax. Taxes are one of the expensive expenditures that occur in the household. When your income rises, you will have a much higher tax payment. The government may give incentives, like tax deduction, that may lessen tax burden.
  • Retirement Planning. How much expenditures would occur when one lives after retirement? Can the household income support it?

With these in mind, you cannot sleep peacefully or think clearly, can you? Here are ways on how to manage your finances:

  • Save. Allot a portion to your income as your savings. A large amount of savings will make you be prepared for any unforeseen events and casualties. Ten dollars a week seems a good start. If you can go any higher than that then it’s good. But don’t deprive yourself and your family of necessities.
  • Budget. Create a simple guide or a list as to what will you be spending and how much money you can afford to spend. Stick to it. Sticking to your budget will lessen your burden from other personal finances you may deal with later. When shopping or simply going to the grocery store, why not write a list or simply remind yourself that you should only max your expenses on a certain amount?
  • Set priorities. Carefully plan your finances. Prioritize what should be needed at first than settling on what you want. Choose: A new bag or paying the electricity bills? Setting priorities first can eliminate consequences that will tear your family apart. Overcome your splurging habit – this will make it easier for you and your family.
  • Don’t “play” with your credit card. Exceeding your card limit and paying it late will cost you an enormous sum. Credit Cards have limits. Control yourself and don’t be impulsive when it comes to buying.
  • Make yourself aware of the present interest rates. When borrowing money from financial institutions or having your jewelry pawned, pay attention to the payment terms and conditions. Pay before or within the deadline date and you will save yourself from any problems that will happen.
  • Deposit your money in the bank. Know your bank – whether they’re trustworthy or the bank is not that reliable. You can choose from a variety of accounts available – savings account, time deposits, etc. Savings accounts have rates that can raise your deposits a little higher.