How to Learn Personal Finance Basics

How to Learn Personal Finance Basics

Personal finance basics is perhaps the most valuable self help topic you could study. It’s one of the few topics in life where easy, basic process improvement can directly impact your monetary resources. Books on the subject are specifically designed for anyone serious about personal finance. Also, they can help those with a large income get a much better handle on their finances. However, personal finance basics can be very difficult for many people to follow because it’s such a broad topic.

personal finance basics

If you’re serious on how to get rich slowly, then learning about personal finance is a must. There is no other way around it. It really is that important of a topic and must be studied, practiced, and applied from all financial experiences. The steps are simply too numerous to name them all in a small article.

Read Books about Personal Finance Basics

Most good books for personal finance basics come in three formats; an easy read, a quick read, or a hard to digest book with lots of illustrations and diagrams.

Types of Books on Financial Tips and Tricks

Here are the types of books on personal finance for beginners:

  • Easy to Read Books

An easy read is designed to be read in short bursts, typically no longer than a single page. An example would be the Plainly Perfect Wealth Book by Anthony Marsh. This is an easy read with short sentences and terse descriptions. It’s not written in a language that a five-year-old could understand.

  • Quick to Read Books

The next level up in the quality of personal finance basics book would be the quick read, like the New York Times Bestseller Money Masters by David Norton. This is a wealth of information for a shorter period of time, and it is meant to be read rapidly. It’s also written in a very compact way that a younger person can easily understand and follow. A young person interested in personal finance might find this a great introduction to the subject, and they may continue to read other books on the subject based on the lessons learned in this one.

  • Long-term Investment Type of Books

The final category of book is the long-term investment type. These are the kind of books that teach how to save money over a long-term period. These are often required reading for financial success professionals who need to teach their own children how to save money over a long-term basis. They might be required to get their own mortgages or even loans set up, or they might need to help their children get loans on their own. Regardless, a good book on long-term savings strategies should be at least a single page, single column, and have a basic story to tell about setting up a plan, following through, and maintaining a long-term savings goal.

Best Books on Personal Finance for beginners

A good book should help a reader understand both how to spend money wisely and how to spend money more efficiently, saving more money, and even making money with his or her excess.

  • Uses Multiple Perspective

A good author uses multiple perspectives to explain concepts and uses examples from his own life to explain things like how to use rewards from a credit card with balance transfers to pay for unexpected entertainment costs, or how to use pre-paid cards from Visa or MasterCard to buy groceries instead of buying them in-store. He might also use an example of a person who has been saving all along to show how a change in spending habits can be made profitable. He might even show how managing money by setting limits for expenses and income can lead to a lifestyle of affluence.

  • Illustrate concepts

A good financial book about saving and spending should not be too theoretical or too practical. It should have a story that makes the reader think. If the author used real people to illustrate certain concepts, then the reader will have a personal experience to relate to. Otherwise, the information provided might just be generalized and not helpful in one’s efforts to save money and achieve financial independence.

Readers should feel that the advice given in any given book about achieving long-term financial goals is based upon sound principles of personal finance.

  • Offer Realistic Guidance

A good financial book offers realistic guidance to help people understand what it takes to get to the next level financially. It doesn’t try to solve every financial problem with the least amount of effort or use complex mathematical formulas. Rather, it gives the reader realistic expectations about where they are going and how they can get there. That kind of personal approach makes it more likely that readers will be encouraged to put the advice they learned into practice.

 

Related Topics:

5  Management Tips For Your Personal Finances

Solutions To Trim Expenses and Save