5 Best Personal Finance Books in 2020
I've read a LOT of personal finance books over the past few years and I wanted to share with you some of my favorites. You'll notice that some of the commonly recommended books aren't on here. It's not that I didn't read them (I did). Rather, the books I have included are much better at teaching money basics without piling on shame, resorting to one-size-fits-all solutions, or telling you to make extreme lifestyle changes. The books on this list offer solid financial advice and many of them walk you through the process of figuring out what is important to you so you can create your best life ever.
1. The One Page Financial Plan: A Simple Way to Be Smart About Your Money by Carl Richards
In The One Page Financial Plan, Carl Richards walks you through the process of identifying why money is important, what your goals are, and how to achieve those goals. His way of looking at the bigger picture requires some emotional/thought work up front, but ultimately makes it easier to make financial decisions. Making decisions about the smaller things becomes much easier once you know what's important now and in the future.
I also love this book because Richards never makes you feel bad about financial mistakes you've made in the past. He's made plenty of his own. Learning to manage money is a process where you forgive yourself for the past and gradually develop better financial habits. If you can't save the entire amount you are "supposed to" for college or retirement, you just start by saving what you can. It's about baby steps.
2. The Index Card: Why Personal Finance Doesn't Have to Be Complicated by Helaine Olen and Harold Pollack
In The Index Card, Helaine Olen and Harold Pollack have simplified personal finance into ten, easy to understand principals (that fit on an index card). Although the advice is fairly basic, The Index Card does a fantastic job of helping one sort out good advice from all the noise one hears on popular radio/tv shows and on the internet. As indicated by the title, Olen and Pollack believe that most people don't need complicated advice and would do well to focus on these essential principals.
3. I Will Teach You to Be Rich, Second Edition, by Ramit Sethi
Ramit Sethi makes some pretty bold claims in the title of his popular book and similarly titled website, but his information is good. In I Will Teach You to Be Rich, Sethi walks readers through specific money management steps. What's great is that he even provides you with scripts for when you want to call your credit card company and negotiate a lower interest rate or when you want a raise. Despite his sort of "in your face" approach, he never shames people for their spending and encourages people to make intentional decisions about the things that are important to them. If lattes make your life better, get the latte!
4. Personal Finance For Dummies 9th Edition by Eric Tyson
I don't usually go for the "For Dummies" series, but Helaine Olen (see #2 above) say that she used this book when the newspaper she worked for asked her to start writing about personal finance makeovers. So I decided to check it out and have found it to be a solid reference guide on everything from improving your credit score to understanding investment options. Personal Finance for Dummies is great for those who aren't interested in learning how things actually work instead of just having a list of things to do.
5. Broke Millennial: Stop Scraping By and Get Your Financial Life Together by Erin Lowry
Broke Millennial Erin Lowry has transformed personal finance advice in both content and style. She covers all the basics without "preaching and finger-wagging," and includes more information for the millennial audience on things like paying off student loans and merging finances with a partner. If the language of personal finance makes you fall asleep before you can get any useful information from it, this book is for you. Lowry has a talent for making personal finance much more entertaining and accessible. Those ready for the next step can check out Broke Millennial Takes On Investing: A Beginner's Guide to Leveling Up Your Money.
