What do many wealthy people have in common? One of several habits that the majority of wealthy people have is reading. Let’s pause for a moment. Highly successful people don’t just read anything – they are very selective. Did you know that there are literally thousands of books available for you to learn what they know to include money management, wealth creation strategies, and personal development?
Below are just 5 (of many books) that have shaped my financial independence strategy and wealth building philosophy.
Think and Grow Rich by Napoleon Hill
Reading Think and Grow Richwill change how you view money and wealth creation. Before reading this book, I didn’t consider that everyone could be wealthy, including me. I thought it was reserved for a few. If you are open to understanding how you can use your mind, thoughts, and relationships to create wealth, this book is for you. This book requires multiple readings to fully grasp the fundamental concepts outlined, but it’s worth it.
Rich Dad, Poor Dad by Robert Kiyosaki
This book is the first of two books on the list authored by Robert Kiyosaki. This book will challenge your belief in the traditional route to retirement and highlight the different philosophies between the wealthy and middle class.
Whose plan are you subscribing to – the Rich Dad or Poor Dad? Spoiler alert, if you are not already wealthy, you have probably subscribed to the Poor Dad’s philosophy. Why? Because it’s the mainstream message. The mainstream message is that you go to school to get a good education, get a job that pays a decent wage, and buy a car and house with all the other trinkets of a consumer driven lifestyle. You continue working until 65 to sustain your liabilities, then live off your 401K and social security. Lastly, you then enjoy the golden retirement years. Sound familiar?
There is another way and this book outlines it.
Kiyosaki’s Rich Dad also argues that your primary house is not an asset but a liability. This is the complete opposite of traditional financial advice. His philosophy is that if the item is not making you money, then it is not an asset. While homeownership is not discouraged, he is clear about what is considered an investment and what is simply nice to have.
For those looking for instruction, this isn’t a how-to book, but rather a book that will challenge you to think outside the box and question the traditional financial guidance. This continues to be an all-time favorite for real estate investors, but I highly recommend it for everyone. For the content to resonate, just substitute real estate for another business that you enjoy.
The Ultimate Secrets of Self Confidence by Dr. Robert Anthony
This is not a money book, but it can make you wealthy. True wealth, as presented in many other books, comes from within. This book provides a formula on how to develop the self-confidence to make it a reality. This book should be referenced a couple times a year to truly manifest the concepts.
Dr. Anthony challenges the limits you place on yourself and outlines how to overcome them. He states that you are exactly where you are because that is where you want to be. Let that sink in.
If you aren’t actively doing something to change your situation, you have chosen comfort rather than the discomfort of stepping outside your comfort zone.
This book is one of my favorites; and therefore, I highly recommend it if you are ready to challenge your current thought patterns and truly change your situation.
Multiple Streams of Income by Robert Allen
This book is probably the Godfather of side hustling and as the title implies, it helps you envision multiple streams of income as a lifestyle. This book introduced the concept of building wealth through three major revenue streams. Get this – not one of the streams is a job!
In the book, Allen outlines three money mountains: Real Estate, Investing, and Marketing. Within each mountain top, he walks through the various income streams within the mountain.
Here are some of the streams within each category:
- Real Estate – Buy and Hold, Tax Liens, Flips
- Investments – Index Funds, Options
- Marketing – Infopreneuring (i.e. Digital Products), Licenses (i.e. Courses, Affiliates)
Retire Young, Retire Rich by Robert Kiyosaki
Rounding up number 5 is another book from the Rich Dad, Poor Dad series, entitled Retire Young, Retire Rich. This is the essence of the FinancialIndependence, Retire Early (FIRE) movement that has now gained traction. Like the Rich Dad, Poor Dad book, Robert debunks the notion of working 40+ years to experience the good life when you are 65 or older. Your golden years are now and you don’t have to choose the traditional route. There is a fast or slow route – you decide.
Robert and his wife Kim retired in their 40s using one key principle – leverage. They used leverage to purchase rental properties, develop a product-based business, and an online business that consistently generates passive income.
If you believe you must save your way to retirement, Robert states that you are choosing the slower route to wealth and financial independence. Leverage (other people’s money) is the key.
Final Thoughts
Which of these books have you read or plan to read soon? What are some books that have shaped your financial philosophy?
Drop a comment below and let me know what you think about this list or what other books you are using on your financial journey.
Are you (FIRE)D up yet? Pun intended.