Money, health, and well-being are all interlinked.
With sky-high property prices and everything costing more, money skills are 21st-century survival skills.
The good news is that a high income is not necessary for achieving financial security. Whether you are a recent graduate or a retiree, these three personal finance books will teach you key money skills.
These books won’t tell you how to find the next high-growth stock or predict where the economy is heading. It’s personal finance after all, and it starts with you and understanding what is important to you.
At the same time, you will learn about budgeting, investing, mortgages, insurance, and other financial concepts in a jargon-free and, dare I say, fun way.
Invest in yourself. Knowledge (with action) yields results. It could be the best investment you will ever make.
The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness (by Morgan Housel)
This book will lay a strong foundation for your money skills and mindset. It is available on Amazon Audible if you struggle to find the time to read.
My favourite quotes from the book:
Doing well with money has a little to do with how smart you are and a lot to do with how you behave.
Using your money to buy time and options has a lifestyle benefit few luxury goods can compete with.
Growth is driven by compounding, which always takes time. Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence, which can happen in an instant.
The hardest financial skill is getting the goalpost to stop moving.
The One-Page Financial Plan: A Simple Way to Be Smart About Your Money (by Carl Richards)
Carl Richards is a US financial planner and writer. He simplifies the complex and will walk you through the exercise of creating your One-Page Financial Plan.
This book is available in print and digital editions.
My favourite quotes from the book:
The best financial plan has nothing to do with what the markets are doing, nothing to do with what your estate agent is telling you, nothing to do with the hot stock your brother-in-law told you about. It has everything to do with what’s most important to you.
People who understand interest earn it. People who don’t pay it.
Budgeting isn’t just about numbers. It’s about awareness. In fact, budgeting equals awareness. Its purpose isn’t to punish ourselves for spending money; it’s to become very aware of how we’re spending our money so that we have enough for the things that matter most.
Enough? How Much Money Do You Need For The Rest of Your Life? (by Paul Armson)
This book explains the idea of life-centered financial planning. In essence, it explains what we do at Thornton Chartered Financial Planners.
The author notes that there are three types of clients:
“Not Enough”
“Got Too Much”
“Just Right”
Do you know which one you are? How much is “enough” for you? A life-centred financial planner can help you answer these questions.
My favourite quotes from the book:
When you know what you are aiming at it becomes much easier to hit.
Life is not a rehearsal, so do not make unnecessary sacrifices and ensure you still have some fun. Tomorrow is not guaranteed.
Life is for living! It’s not about being the wealthiest man or woman in the graveyard. It is about lying on your deathbed with a mischievous grin on your face, while you giggle to yourself: That was so much fun!
If you want a copy of “Enough?” Let us know. We will send one to the first five people to ask!
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