There’s a TV program on Showmax called I Blew It. The show is centred on people who in one way or another suddenly received millions of Rand (hundreds of thousands of US dollars) and quickly spent the money and before long were left with nothing or were in debt. It’s easy to watch a show like that and think that would never happen to me. If there’s one thing I’ve learned, it’s that it’s quite possible to find yourself in a situation you thought would never happen to you.
Whether you’re already making money or learning to make it or on the way to your freedom amount (known as FU Money in some circles) it’s important to educate yourself on the subject of money because it’s easy to have it and lose it all. Not because you didn’t want it but because you didn’t know enough to be able to make it, keep it and grow it. If like me you’re not already making the kind of money you want to, you need to be ready for when the money starts coming in. Don’t wait until you have it to start wondering what you should do with it because chances are you’ll spend it and before you know it you’ll be on an episode of “I blew it.” Nobody wants that.
The following books are especially important for people like me, who have no money management background or any formal financial education. But thank God for books and the internet, now anyone can learn all they need to know on the subject of money and investing. Here are the books:
- The richest man in Babylon by George S Clason.
This is a timeless classic that is a great introduction to learning about money and saving. It’s told in the form of a story that anyone can understand. It was a good start for me when I read it a few years ago because I had zero financial education. It’s a 1926 book, meaning it’s in the public domain so you can find it online for free.
- Rich dad, poor dad by Robert T. Kiyosaki and Sharon Lechter
This book is on the basics of money, the importance of saving, investing and wealth building. Robert T. Kiyosaki discusses money through the lens of two different men, one an intellectual and the other an entrepreneur and how they handle the making of and management of money. It’s done in a way that makes you think about how you can apply the lessons from the book in your own life. I think it’s a good read if you have no idea where to begin when it comes to dealing with money.
- The psychology of money by Morgan Housel
The psychology of money by Morgan Housel is on investing and money behaviour. I read it a couple of months ago and it’s the one that sparked me writing this. It’s filled with great insights on how we behave around money and how it’s a personal thing rather than a one size fits all. This books helps you figure out the investing game tailored to you specifically, not just generally. I’m so glad I read it because it shifted the way I looked at money and investing. Even if you’re in the middle of the investing game, this book will have you thinking about money and investing in ways you may not have considered. I discovered the book through Morgan Housel’s interview on the Tim Ferriss Show Podcast, which I’ll link to below.
- You are a badass at making money by Jen Sincero
You are a badass at making money by Jen Sincero is on the mind-set around money and making money. It’s filled with practical exercises and success stories. I loved it because I could relate to her story and what she was talking about. She’s also funny and real. I found myself laughing out loud at some points where she was describing her thoughts about money that mirror mine. The book leaves you feeling like no matter what situation you’re starting from, you can start to make money in your life and have an idea of where to begin.
- MONEY Master the game by Tony Robbins
Although this book is rather on the long side, it covers all things money, saving and investing and gets practical in a way that I truly appreciated. It debunks a number of myths about money that we tend to believe to be true without questioning them. This book was eye opening in many respects and one that I believe you can’t afford not to read.
I intend to keep coming back to these books until I reach my FU money and even after that. If you choose to read any of these books, I hope they help you with making money, saving and investing it.
