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4 Books That Will Change the Way You Think About Money

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It is important to continually improve your understanding of your finances, and how to best manage them. If you are looking for a way to change your financial habits, change the way you think about money and achieve financial freedom, you need to understand basic principles about money. You may need to change just one or things that are holding you back. These four books challenge the traditional view of money and start you on a path to achieving true financial independence. They can help you determine the financial goals you need to set.

1. "The Millionaire Next Door"

This book challenges the assumptions that most Americans have about being well off. It looks at the habits of the average millionaire, and their assets. It points out common mistakes that most Americans make while trying to build wealth or when they want to act as though they are wealthy. This is a must read if you want to understand the difference between the truly wealthy and most other Americans. The majority of millionaires that they look at are self-made millionaires.

2. "The Total Money Makeover"

Dave Ramsey challenges the way that you look at your money. It provides an excellent plan that will help you to get out of debt so that you can truly begin to build wealth. He has a seven step plan that will lead to your financial independence. This plan does require sacrifice and hard work, but it does work. If you take the time to apply the principles with a real intensity you can get out of debt quickly. Dave Ramsey then takes you through the rest of his steps that will help you manage your money, so you do not end up in debt again. The plan can help you retire comfortably and leave a legacy for your children.

3. "Rich Dad, Poor Dad"

This book challenges the views that most Americans view money. The author explains how he learned from his best friends dad how to look at money in a different way. He talks a lot about earning income from more than one source, and he talks about using real estate to build wealth. He also talks evaluating things to see how much they are costing you. For example he points out that a house may not be an asset, if it is costing you money each month. This is a good book if you are looking to build wealth and become financially independent. You will need to carefully follow the precepts and move carefully so that you do not end up in debt that you cannot pay back.

4. Your Money or Your Life: Transforming Your Relationship with Money

This book will challenge the way that you value your money, your things and your time. The exercises that it takes you through give you the chance to see if your life goals are being met through your current job and financial situation. It contains a plan that can help you to have your financial goals match your life goals. It will also help you to gain financial independence over time. Even if you do not fully embrace the principles in this book, the basic philosophy and investing strategies can help you to do better financially.

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