The key for us to build a million dollar net worth was to start our savings and then investing journey off early.
I started saving money as soon as I left high school and had a part time job during my university years. It was around this time that I got interested in investing. A big part of my education in this area was to read a lot of books.
I have compiled the list of the 5 books that had the most influence on me in terms of creating the right mindset around money. As well as giving me a starting foundation for how to manage my money better.
The books are a little bit dated now, as I did most of my learning about money back in the early 2000’s. Most of them have been updated since then with newer editions, but even if you have an older version the lessons are still quite relevant today.
Whilst the book is based on 20 years of research of American families the findings from this book still apply here in Australia.
It details how real people become millionaires and that most of them are not living the extravagant lifestyle you may expect to be associated with someone with a high net worth.
The main things that contribute to people being millionaires is that they live below their means, they have a partner who is on the same page financially and they focus time and energy on accumulating wealth.
The key lesson that I took out of the book is that it is achievable to be a millionaire and it is something that someone who grew up in a middle class family like I did could reach if I made some smart choices along the way.
I had heard great things about this book, so I borrowed it from the library to read. As I first started reading it I found it a little tricky to follow along with the writing style. It is written in an ancient style of writing as ten parables.
Once you get used to the style the lessons you will learn from this book are invaluable. There are 5 key themes in the book that are taught via the storytelling throughout the book. These 4 themes are saving, avoiding debt, investing, wisdom (or always learning) and the value of hard work.
If you can grasp these 5 themes then you are well on your way to having the right mindset for financial success.
This is up there to be one of the best money books I have read. What I love so much about it is that it does not focus on managing your money which is what most books in the finance space do.
Instead it is all about the psychology of money, and is perfect for anyone who wants to change their relationship with how they view money.
The book is broken down into nine steps which are there to make us think about if what we are currently doing aligns with how we want to live our lives.
I truly believe everyone out of school before starting their job should had a read of this book.
If you do a few Google searches you will see that at times this book can get a bad wrap. But the reason it has been included in my list, is that at the time I read it for the first time it did inspire me.
So whilst these days it might not be the best book out there, it did for me serve a purpose to teach me a few lessons.
In particular it taught me that you should save money so that you can accumulate assets that will replace your income. So this was one of the first places I learned about the power of passive income.
This book is pretty short so I have actually read it a few times and I can often come out with new nuggets of wisdom with each read.
To me this was just the starting point for me to explore the concepts of the power our thoughts have, as well as realising our own potential.
What I also loved about this book is that it touches on the power of purpose. For me this was not just a book about money, but a book about mastering ourselves so that we can be more successful in all facets of our lives.
Why I love these books is that they are not specific to teaching you how to budget or how to invest. They don’t tell you what bank account to open our what to invest in.
Instead they are books that help you to think differently about your money. I have a real interest around the psychology behind our money mindset so I think that is the reason these books appealed to me the most.