We all want to be happy and rich. While everyone sees happiness differently, most people see wealth in the same way. A rich person is someone who owns a lot of property, is a millionaire or simply has an income higher than their costs. Each of us needs a different amount each month, and that is what it is all about.
A person who has enough material resources and means to meet their needs and wishes without cutting back. Some people, however, spend lavishly, so even with a high income they end up poor after a while. Earning money and building wealth are two completely different skills!
Becoming rich, however, is not so easy. But it is not impossible. Below you will find tips on books about financial literacy that can bring wealth closer to you too.
Financial literacy
What is financial literacy? You have probably come across this term already. So let us explain what it is.
Financial literacy means a set of skills and knowledge that allow a person to understand finances and manage them. These skills include, for example, the ability to manage your personal finances, create a personal budget or invest.
A lack of financial literacy can lead to heavy debt, enforcement (exekuce), personal bankruptcy and other problems.
The books mentioned below can help you improve your financial literacy.
Learn to Invest (Naučte se investovat) by Daniel Gladiš
As one of the few truly Czech books on investing, this book focuses on telling investments apart from speculation. The author also aims to help the reader understand risk, estimate the intrinsic value of a share and learn to distinguish between investment strategies. The author also gives concrete examples of investing that will help you master both the investment process and the psychology of investing. The book also discusses how to avoid fear and greed and how to take taxes on investing into account.
The advantage of this book is that the author is Czech, so it focuses on the Czech environment.
The Intelligent Investor by Benjamin Graham
A book that Warren Buffett called “by far the best book about investing ever written”. It is considered a classic book on investing and personal finance. The author was an American economist and professional investor. He is considered the first advocate of value investing. In the book, the author explains how to avoid serious mistakes as an investor and which strategies are successful in the long term. The book is written in a style that even beginners will understand. It is considered a cornerstone of investing and one of the most valuable books on investing you can read. Of course, it needs to be read with the time when it was written in mind.
The Richest Man in Babylon by George S. Clason
Probably the most famous book on the subject of wealth. The book is written as a series of stories from ancient Babylon. The author offers a guide to earning money, keeping it and then growing it through investing. The Richest Man in Babylon is an essential book on investing and understanding its principles. The book also contains valuable advice on dealing with debt problems. It is written in a simple way, so even a beginner will understand it. It was first published in 1926 and is still relevant.
Rich Dad, Poor Dad by Robert T. Kiyosaki
The aim of this book is to show the difference between the mindset of rich people and poor people. The author grew up under the influence of 2 father figures, his own father and the father of his childhood friend. The book talks about how important financial literacy is in everyday life and how to become financially independent. The author also encourages readers to create a source of passive income. The book deals more with the psychology of making money than with real examples, but it is still considered very valuable in the world of investing.
The Essays of Warren Buffett: Lessons for Corporate America
There is probably nobody who has never heard of Warren Buffett. Warren Buffett is an American billionaire, investor, businessman and philanthropist. Forbes magazine listed him among the 100 most influential people in the world in 2007. In 2008, according to the Forbes ranking, he was the richest person in the world. The book of essays by Warren Buffett is a collection of letters that Warren Buffett wrote to Berkshire Hathaway shareholders over several decades. It provides very valuable information, is written simply and covers the basic principles of sound business practice. The book was compiled by Lawrence Cunningham. Unfortunately, the book has not yet been published in Czech, so you need English above a basic level to read it.
The Psychology of Money by Morgan Housel
In this book, the author Morgan Housel teaches readers how to have a better relationship with money. According to him, what matters is not what people know but how they behave. Instilling the right behaviour patterns in people, however, is certainly not easy. Reading about the stock market crash of 1929 is one thing, and watching your shares fall to their lowest depths while still holding them and not selling is another. Many people approach finance as if it were an exact discipline and expect books to tell them exactly how to act. In reality, however, many stimuli and factors influence decisions, and the decisions themselves are usually different from those described in a book. In the book, the author offers 20 short essays on how people think about money.
Your Right to Be Rich by Napoleon Hill
The author was one of the first writers of personal development literature. His best-known book is “Think and Grow Rich”. This book of his does not limit the idea of wealth to fortune or fame. It also explains how people deserve to be rich in areas related to their physical and mental health. The book contains transcripts of the author’s most important speeches and lectures and is the first to bring them together in such a complete form. It therefore focuses on all aspects of wealth and connects them with each other.
All of these books can help give you the push to start investing. They can also lead you to wealth.
If you would like more useful information, take a look at our article on how to easily invest even small amounts or on how to manage your money properly.