When it comes to personal finance, the greater your financial literacy, the better you will be at making wise financial decisions for your long-term stability and security. But, how do you gain this financial literacy? It certainly doesn’t come built-in and life may not offer lessons to everyone in the same manner. In such a scenario, the best way to build financial literacy is to read books. Yes, you read it right. Read more and learn more. As with life, so with personal finance.

Books written by financial experts will go a long way in helping you make your way through life successfully at least when it comes to managing your finances. In 2021, make it a goal to read some great books on personal finance to arm yourself better. 

But how to choose which books to read? Walking into a library or a bookstore will leave you face-to-face with a plethora of titles you will have a hard time distinguishing between. A great start to finding the right book for you would be to look for titles that are in line with your requirements.

For instance, if you are looking to make a start in investing, look for titles that offer a basic guide. However, still, you will be faced with a number of titles. To make your task easier and help you become more financially knowledgeable, we have picked a list of some of the best personal finance books you should read by the end of 2021.

  • Rich Dad, Poor Dad by Robert Kiyosaki and Sharon Lecter

One of the most highly recommended books in personal finance, Rich Dad, Poor Dad by Robert Kiyosaki and Sharon Lecter, is a must-read for anyone looking to get knowledge on financial literacy, financial independence and building wealth.

This book, which is supposed to be based on experiences Kiyosaki gained in his own life, makes for an interesting read more because of its writing style which is in the form of a parable, or a story that is supposed to impart valuable financial lessons. In the book, Kiyosaki attempts to educate readers on personal finance by discussing anecdotes from the lives of two men, a ‘poor dad’ supposedly his own father, and a ‘rich dad’ who is supposed to be a friend of his father’s.

Through these anecdotes, Kiyosaki tells his readers that the difference between being rich and being poor is due to the difference in the nature of financial decisions taken by the two. In essence, rich people become rich because they let their money work for them, that is, they invest their money and watch it grow. For this, they make use of financial education so they can make wise decisions about their money.

The key takeaway from the book is Kiyosaki’s reiteration that one needs to change their mindset about money and instead of hoarding it, invest it wisely for wealth creation. If you are someone who is unsure about investing their money, this book will motivate you to take the plunge.



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  • Your Money or Your Life by Vicki Robin

Your Money or Your Life by Vicky Robin is another highly recommended personal finance book for you to read in 2021. This book discusses some pathbreaking ways to deal with and manage money.  One of the best books to read on personal finance, through this book, Vicki Robin ranks among the first to inspire readers to create a roadmap to align their life and finances with their plans and goals. 

The premise of the book lies in a simple question, put forth in the title and the conclusion––how much money are you willing to trade for your life. The book motivates readers to evaluate their short-term as well as long-term goals. The book also throws light on some methods to save money and the best methods to achieve one’s goals through simple strategies. It also discusses how much inflow of money you will require to achieve your goals or conversely, how much you need to save to get there.

Your Money or Your Life is a good introduction to financial independence and lets you understand smart ways to invest and live freely without any burden too. For instance, when you are working, you are trading your life and energy to get that money by the end of the month. So, what does that mean? Once you are clear on why you are working to earn, save and spend, making financial decisions about your plans, goals, investing and budgeting becomes very easy.

  1. The Total Money Makeover by Dave Ramsey

If you are someone who is constantly worried about rising debt and no clear path in sight to end this situation, one of the best books for you to read is The Total Money Makeover by David Ramsey, considered a legend of personal finance for decades.

The Total Money Makeover, released in 2007, features incredible stories of people’s transformations to pay off thousands of dollars in debt. Using the stories as engagement, Ramsey offers a complete guide to saving funds, investing, and getting out of a mortgage. The author then shares 7 simple steps of moving through finances which can come very handy to understand your daily needs.

The book covers basic fundamentals of writing your goals and budget, why debit is better than credit, and how you can spend on each of the categories with the budgeted amounts. The book further features step-by-step information on how you can get out of debt and other useful tips for surviving mounting debts, including building your wealth after paying off your debt. Ramsey also provides extensive chapters on investments and types of funds you can invest in based on the latest trends.

  1. The Millionaire Next Door by Thomas Stanley and William D. Danko

Another great book to consider adding to your list of personal finance books to read by 2021 is The Millionaire Next Door by two profound authors, Thomas Stanley and William D. Danko. This book is particularly a must read for those who have just come started learning about personal finance because it covers the basics of finance with simple and consistent instructions.

The title is highly suggestive of the content of the book which is essentially a highly statistical exploration of America’s ‘millionaires’ who have a net-worth of $1 – $10MM. The chapters of the book are focused purely on this cohort of people who today represent over 90% of the millionaire population of the world.

Highlighting aspects of the lifestyle of a millionaire in America lives in terms of what kind of cars they drive, how much they save and spend, their financial planning methods and how much they allocate towards their goals to build their massive wealth, this book can be an interesting read for you if you want to follow the steps of a millionaire and draw some insights.

Finally, the book concludes with some statistical information to determine people in an “Under Accumulator of Wealth” (UAW), or “Prodigious Accumulator of Wealth” (PAW) and how one can find themselves in the category through daily routine.

Overall, this book is very helpful to develop some good financial practices from the very beginning. So if you intend to become a millionaire sometime in the near future, this book will definitely help you get the habits to make you successful.

  1. Why Didn’t They Teach Me This in School? by Cary Siegel

If you thought your school education was inadequate when it came to teaching you practical lessons about managing your finances, then do read Cary Siegel’s Why Didn’t They Teach me This in School? Highly recommended by eBay, Forbes and Lifehacker, this is one of the most read and the top graduation gifts you can receive as college graduates or even gift to young adults. The book discusses 99 useful money hacks and lessons that will set you up towards

building a healthy financial life. This book by Siegel features ideas on money management and how simple basic steps can help you save money and handle the budgets well. One of the easiest books to read on personal finance, grab your copy to learn the art of earning and saving money at the same time.

While not all 99 tactics and lessons may be applicable to your particular situation or agree with your life plans, a large portion of this book gives some effective advice that should be read if you are looking to improve your daily finances.

  1. Secrets of the Millionaire Mind by T. Harv Eker

If you are someone who aspires to be a millionaire (like most people), you can learn how millionaires think and handle their finances in T. Harv Eker’s path breaking book Secrets of the Millionaire Mind. An insightful book into personal finance, it essentially makes the argument that an individual is poor because they think like a poor person and they are rich if they think rich.

It is all about your mindset. Delving into his own experience and sharing how he became a multi-millionaire after a modest beginning, the author suggests to readers how they can use their mindset with the resources available to them in life to build a massive corpus of wealth. 

  1. The Science of Getting Rich by Wallace Wattle

A book that was written at the turn of the 20th century but continues to hold relevance even in the 21st century, Wallance Wattle’s The Science of Getting Rich is a must read for you in 2021 if you are on a wealth-building journey.

One of the earliest proponents of the idea that how you think determines your ability to create wealth, Wattle provides a framework in 17 chapters on how to overcome a ‘mental barrier’ to create wealth. The author advises his readers to focus on creating their own wealth instead of trying to beat the competition.

This will lead to a mindset where one will see the abundance of resources available and use them to their advantage. If you are looking to read a book that will motivate you to change the way you manage your personal finances, this is definitely the book for you.

Here you are then –7 best personal finance books you must read in the year 2021 so you can well be on your way to achieving your short- and long-term goals and achieve financial security in the near future.

Aahna Gandhi

Aahna Gandhi is an enthusiast traveller, writer and a PR Professional. She likes sharing memorable moments from her travels and inspire others to live a life full of wonder. Known for her content, she has worked for travel, technology, lifestyle, health sectors as well as finance.

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