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Top 5 Books on Financial Literacy You Must Read

April 21, 2023

Here’s your personal checklist of the top 5 books on financial literacy. To achieve financial freedom, educating yourself is the right way to start.

“The single biggest difference between financial success and financial failure is how well you manage your money. It’s simple: to master money, you must manage money.” - T. Harv Eker.

The way to financial success is not a rosy one, but nor is it unfeasible.

What you need is proper guidance - something that our schools and colleges don’t generally provide but top books on financial literacy might help.

How you manage your money, how you save, where you invest, how much you spend, etc., all decide your financial position.

No matter what amount you study in school/college, if you won’t put those money skills to practice or wouldn't know the potential that your money holds, you will always remain financially illiterate.

This makes financial literacy the only way to get out of the weak-finances cycle.

So, where to start your financial journey? Educate yourself about money first. Understand wealth generation, money management, budgeting, savings, and investments

You might opt for various ways to help yourself financially.

Here, we bring to your attention the top 5 books on financial literacy that you wouldn’t want to regret skipping! 


1) Stop Acting Rich - And Start Living Like A Millionaire (by Thomas Stanley)

The best thing about this book is that it gives a very clear and straightforward message to its readers.

To give you a hint, it talks about how lasting wealth and happiness are rarely achieved by buying high-end expensive items.

The real way lies in achieving financial freedom.

For people looking for inspiration or guidance to grow and generate wealth, this book is exactly what you’ll need.

This is an important financial literacy book for young adults in their initial years of career as it provides valuable insights on financial literacy, helping them prevent potential financial mistakes, redefine wealth, and break the cycle of lavish spending


Some crisp takeaways: 

  • Understand the concept of being rich versus acting rich.
  • Wealthy are those who invest money with the long-term stability mindset.
  • How non-millionaires try to act like ultra wealthy people and end up being financially devastated.

Preview the book here: Stop Acting Rich - And Start Living Like A Millionaire


2) The Millionaire Next Door - The Surprising Secrets of America’s Wealthy (by Thomas Stanley)

This book on financial literacy cracks the code for getting rich and, hence, wealthy. Writers Stanley & and Danko created this book in the form of extensive profiling of some of America’s millionaires.

While busting the myths related to super rich people, this book focuses on the path to financial success.

Tracing the millionaires’ paths, you will get your hands on some life changing insights that you can use to transform your own financial health.

Some crisp takeaways: 

  • Belief in financial independence > showing off top social status
  • The perfect strategy to allot your precious time, energy, and money into generating wealth.
  • Grabbing the right market opportunities.
  • How a proper occupation can set the stage for your financial freedom. 

Preview the book here: The Millionaire Next Door - The Surprising Secrets of America’s Wealthy

3) Think And Grow Rich (by Napoleon Hill) 

This is one of the best-selling books on financial literacy of all times.

This is for the finance philosopher in you! This book is based on the belief of ‘helping yourself’ and how this mindset and approach turns the tables for your finances.

Hill, in this book, says that with just your innovative thinking and the ‘help yourself’ philosophy, you can succeed in ANY line of work. How? Read the book to find out:)

Some crisp takeaways: 

  • Mastering the ‘science’ of success and the subtle art of growing your wealth/net worth.  
  • Deciding your financial goal and staying flexible with your related plans.
  • Projects not working? Feel free to change/stop them.  

Preview the book here: Think And Grow Rich 

4) The Richest Engineer - A Story That Will Unravel the Secrets of the Rich (by Abhishek Kumar) 

This book on financial literacy explains personal finance in a way that is best suited for the Indian audience.

The main outline of this book by Abhishek Kumar lies on a simple question which must have crossed your mind at least once:

‘Have you ever wondered why some people get rich easily while others have to struggle financially all their lives?’

To answer this core question, Abhishek tells a story and shares a conversation between two friends - Vinay and Ajay.

As we get closer to the solution, we get exciting and useful insights on how an individual should use his/her income to invest properly and generate wealth.

Plus, he has shared some basic principles that you, as a seeker of financial independence, must follow to achieve your desired goals. 

Some crisp takeaways: 

  • ANYONE can become rich with just the right approach.
  • How to change the wrong mindset towards money that we have been taught all our lives.
  • Tips on how to maintain your current standard of living while dealing with increasing your income and decreasing your taxes and expenditures. 

Preview the book here: The Richest Engineer - A Story That Will Unravel the Secrets of the Rich

5) From the Rat Race to Financial Freedom (by Manoj Arora) 

In case you are looking for a nice and simplified meaning and concept of ‘financial freedom’, this is a must- read financial literacy book.

Manoj mentions how each one of us is in an unnecessary self-acclaimed rat race - where all that happens is a fierce competitive struggle to learn more and MORE about money.


And that is not really meaningful. 


In this book, he talks about the importance of constructing a personal financial plan in achieving your financial goals. With sharing how to get out of that rat race, this book on financial literacy teaches you to take charge of your money. 


Some crisp takeaways: 

  • Your social status or net worth is not the reflection of your financial freedom.
  • Your level of earnings actually doesn’t matter - all that matters is how you take charge of your money and save & invest it. 

Preview the book here: From Rat Race To Financial Freedom 


Books on Financial Literacy for Beginners

1. The Simple Path to Wealth

Yes, "Simple Path to Wealth" is suitable for beginners in the realm of personal finance. The book is written in a clear and accessible manner, making it easy for individuals who are new to financial concepts to grasp the information

Collins demystifies complex financial concepts, offers practical advice on portfolio allocation, and shares personal anecdotes to help readers develop a clear understanding of how to attain financial security. 

This book on financial literacy promotes a long-term, passive investing approach and advocates for financial independence through smart decision-making and living below one's means. 

Some crisp takeaways: 

  • Embrace the power of index fund investing
  • Prioritize saving and living below your means
  • Have a long-term perspective

Preview the book here: The Simple Path to Wealth

‍2. The Psychology of Money


"The Psychology of Money" by Morgan Housel is a highly suitable financial literacy book for beginners as it provides valuable insights into the psychological aspects of money management. 


It explores the complex relationship people have with money and how our emotions, biases, and behaviors can impact financial decision-making.


The book delves into various topics, including the concept of financial success, the role of luck in wealth accumulation, the influence of personal values and beliefs on money-related choices, and the importance of long-term thinking. 


Some crisp takeaways: 

  • Financial success is driven more by behavior and mindset than by intelligence
  • Emotions and biases can greatly impact financial decision-making and should be recognized and managed.

Preview the book here: The Psychology of Money

There are hundreds of financial literacy books out there, and you must find the one that sits well with your level of understanding and sets the path clearly for you. Here is a small takeaway from us too: ‘The more focused you’ll be on generating wealth and using your income the right way, the faster you will achieve financial freedom’. 

To become rich, you do not have to be born rich! Just get your goals straight, believe, work, and achieve. Remember that anyone can become rich - all that you need is the right inspiration.