Must read books for better financial management and what they teach you

Warren Buffett has probably never read a book on how to grow your wealth. But hey, not everyone is Buffett! We all need a helping hand, sound advice and a bit of motivation to help us understand money and how it works, and how we can better manage our lives financially.

Books like “The Millionaire Next Door” and “Rich Dad, Poor Dad” have been on our shelves for several decades now, but there’s a new generation of personal finance books that don’t just tell you to avoid the debts, track your spending and live below your means. New age money management books aim to build a solid foundation of financial psychology and include things like your financial mindset and how you can make your money work better for you. We’ve selected a few of these 21st century guides to financial nirvana that can help you realign your finances with your life goals while showing you how to make prudent investment decisions at every stage of life.

# Why didn’t they teach me this at school?

These 99 personal money management lessons to follow in the 2017 book “Why Didn’t They Teach Me This In School?” Offerings were developed by Cary Siegel to pass on to his five children as they entered adulthood, once he realized that schools teach everything under the sun except life management. personal money. Drawing on his own experiences during his financial journey, Siegel covered topics such as budgeting, spending, credit cards, investments, mortgages, insurance, in plain language and infused it with a practical and concrete wisdom.

He offers advice such as “Just spend an hour a week learning about personal finance”, “Approach your work by following the three Ps: passion, politeness and perseverance” and “Don’t invest your time and money in multi-level marketing programs”. , while dwelling on the benefits of getting insurance to make sure you’re covered and leave no one behind at any stage of life. Siegel’s sound advice for the uncertain times we live in fits perfectly into a savings insurance plan like HDFC Life Sanchay Morethat guarantees the security of your family’s future while ensuring that your wealth continues to grow.

Very much in line with Siegel’s musings on the importance of having a “savings rather than spending mindset”, Sanchay Plus is a plan that not only gives you life cover, but an income of stable pension and guarantees the payment of benefits! It’s an easy to understand plan that gives you 4 plan options –

  • Guaranteed maturitywhich provides a guaranteed maturity benefit payable in a lump sum at the end of the contract term,
  • Guaranteed incomewhich offers guaranteed regular income for a fixed term of 10 or 12 years,
  • income for lifewhich provides guaranteed regular income to age 99 plus a return of premium at the end of the payment period, and
  • Long term incomewhich provides long-term guaranteed regular income for 25 or 30 years plus a return of premium at the end of the payment period.

An added benefit is that you can pay the premium annually, semi-annually, quarterly or monthly, always following Siegel’s advice for understanding the “time value of money”.

Siegel’s principles such as “Get rich slow and set short-term (realistic) financial goals” are sure to resonate and are easy to digest, understand and emulate. This is a book that offers qualitative rather than quantitative advice on personal money management and can be a good friend to turn to when in financial doubt!

Siegel’s Golden Words-

Don’t try to follow the Joneses; they go bankrupt

Don’t underestimate the cost of ownership

Prioritize your expenses

Stay away from “bargains” that really aren’t

Stay away from “little things” that really aren’t

# Let’s talk money: you’ve worked hard for it, now make it work for you

Vicki Robin’s “Your Money or Your Life” sold a million copies in the 1990s, with her easy-to-follow nine-step plan to help readers change their relationship with money. Closer to home, Monika Halan’s 2018 book is simpler with her plain language about saving, spending and lifestyle. One of India’s most popular personal finance writers, she gives everyday examples and talks about concepts you and I easily understand – fixed deposits, tax issues and the issues of identifying the right insurance policies to to buy. She talks about stories of people she knows and how they overcame their financial problems, and weeds out the financial terms that most of us cower under. Halan’s advice comes in small, simple doses, like –

You’re doing well if…

  1. you have a three-account system that separates your income, expenses and savings;

  2. your living expenses do not exceed 45-50% of your net income;

  3. your EMI payments do not exceed 25-30% of your net income;

  4. your savings represent at least 15-20% of your net income.

  5. The best part? The book is available to read right here.

# The Simple Path to Wealth

JL Collins is often considered the godfather of modern financial literacy, and for good reason. Collins apparently wrote this 2016 book “The Simple Path to Wealth” for his daughter and, avuncularly, advises readers to stay away from toxic debt and complicated, confusing investments. On the other hand, it illustrates how money, when used correctly as a tool, can buy you the freedom you desire, and he affectionately calls it “F– You Money.”

This is a book for the FIRE aficionados among us, those who believe in the credo of “financial independence, early retirement”. While describing the simple path to wealth, Collins talks about the easy investment strategy that made him wealthy enough to retire early! With Collins’ help, you’ll walk away with a handy toolkit to achieve financial freedom with minimal effort.

Here is a sample-

“Complex investments only exist to benefit those who create and sell them. Moreover, not only are they more expensive for the investor, but they are less efficient.

Needless to say, prudent saving to protect your family’s future is a cornerstone of these authors’ advice to anyone looking to embark on a healthy financial path. A Savings Insurance Plan which offers you to secure the future of your family as Sanchay More from HDFC Life, fits perfectly with the sage advice given by most of today’s financial gurus. Sanchay Plus allows you to live your life on your own terms, while covering you for the unexpected and helping you build a corpus for your children and your retirement.

So make room on your shelves for these invaluable books to guide you on the path to financial freedom, but also remember to grow your wealth prudently by investing wisely in HDFC Life Sanchay Plus today!

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Geraldine L. Melton