If you're looking to change your financial situation, it's important to start with your mindset. A positive money mindset is key to manifesting wealth and success.
You need to believe that you are capable of great things. You need to ignore your doubters and haters. You need to construct a clear plan and execute, despite people telling you you can't.
We need to find reasons we can make it, not reasons we can't.
These books embrace this mindset.
The Best Money Mindset Books
In this blog post, we'll list five of the best money mindset books for you to read.
Rich Dad, Poor Dad
We're going to start with our number one pick, the grandaddy, or rather, the daddy, of all personal finance books: Rich Dad, Poor Dad by Robert Kiyosaki.
Rich Dad, Poor Dad is really the closest you can get to a literal manual for the positive money mindset. Rich Dad, Poor Dad is packed with financial advice.
Rich Dad, Poor Dad makes many lists of top personal finance books, and there is good reason why.
Rich Dad, Poor Dad teaches us that the key to financial freedom and escaping the rat race is financial education and financial intelligence.
Gaining financial intelligence means you need to pursue financial education through books, seminars, courses, videos, podcasts, webinars, or any other medium to constantly improve your financial literacy and financial IQ.
Rich Dad Poor Dad says that we are always learning and need to constantly study and improve.
Rich Dad Mentality
Kiyosaki tells the story of his "rich dad" (his friend's dad) and his "poor dad" (his dad).
The poor dad says things that poor and middle class people say, which is "I can't afford that."
The rich dad says things with a positive attitude of manifestation, like "How can I afford that?"
Assets vs. Liabilities
Rich Dad buys assets that continue to generate more income for him, while Poor Dad works so he can afford another liability that just ends up costing him more.
Rich Dad is picking up another asset, like a rental property, that generates cash flow while Poor Dad is picking up another liability, like a car.
Rich Dad is building wealth with yet another asset, while Poor Dad is working to pay his bills and buy more liabilities.
Rich Dad's mentality is characterized by the idea of investing in real estate as an asset to generate wealth. Poor Dad's mentality is working to get a raise so he can make his mortgage payment.
Make Money Work For You
Kiyosaki tells us to think of our money as an employee. If you invest in, for example, a real estate opportunity, Kiyosaki tells us to think of each dollar as working for you to make more.
Profit is profit. Your original investment is actually your team working for you to generate passive income.
Kiyosaki's Poor Dad thinks he has to work for money. His Rich Dad is making money work for him.
Make Tax Code Work For You
Robert Kiyosaki gives financial advice and explains tax code and learning how to make it work for you.
One code Kiyosaki highlights is Tax Code 1031. This has to do with taxes on real estate capital gains.
According to the IRS,
"Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free."
Implementing Your Financial Education
So, if you knew this and it was part of your financial IQ, and you just sold a property, you may choose to reinvest the proceeds in a similar property so you could defer paying taxes on the capital gains.
See, success isn't all about making money, but how we then make our money work for us.
So, I Need to Invest in Real Estate to Create Wealth?
Although Kiyosaki is a proponent of real estate as an excellent cashflow creator, he does emphasize that if you are not interested in it, then it's not for you.
Do you love spending time in different neighborhoods looking for real estate investment opportunities?
If that doesn't sound like your cup of tea, don't worry.
There are many other passive income ideas that Kiyosaki's book gets into.
Kiyosaki also has the Rich Dad Radio Show, a website, a newsletter, and many other ways you can learn about his newer investment ideas.
Look to Others For Advice
Kiyosaki writes how getting out of the rat race is not enough, you need to stay out of the rat race by finding others who have done the same and surround yourself with them.
Robert Kiyosaki sees financial education as an ongoing work in progress.
He continues to take courses, go to seminars, and meet with other successful people from whom he can learn.
The Millionaire Fast Lane
The Millionaire Fast Lane by MJ DeMarco is about OUR CHOICE: the path of mediocrity or the path of wealth.
You deserve a remarkable life where your dreams come true, not slaving away at a job you hate for most of your life until you can retire.
The book is about choosing the millionaire fast lane, which is a road less traveled.
It's about those who choose to be extraordinary and live life on their own terms.
Carsen argues that most people are driving in the slow lane.
Changing your mentality from "consumption" to "production" can generate wealth.
If you see something being sold, instead of buying it, why not think of a product or service that compliments that item already in demand that you can produce and sell.
The Millionaire Fastlane 'Mentality'
The Millionaire Fast Lane has been criticized for its "YOLO" (you only live once) mentality.
Critics say that the book is about making as much money as possible without regard to the consequences.
Some may find it a bit of a risky mentality, but if you're going to go for it as an entrepreneur, friend, mom, business owner, career woman, homemaker, employee, or any other role or roles, you probably want to go big or go home.
The Secret by Rhonda Byrne is the authority on manifesting your dreams, whether they be related to money, your social or family situation, health, career, or anything else.
It really belongs more in the self help category than the financial literacy category, but manifesting and believing in yourself is a huge part of developing your financial intelligence and the confidence to succeed.
Whether you are trying to pay down a credit card, get out of debt, are completely starting over, creating cashflow, starting a business, becoming a real estate investor, or taking your business to the next level, you have to believe you can do it, right?
That's the core message in the Secret.
If you can believe it, you can achieve it.
We need to educate ourselves, have a plan, and execute, but first we need to believe our goals are even possible.
You Are a Badass at Making Money
You are a Badass at Making Money by Jen Sincero is about how wealth begins with mindset.
This book is all about helping you change your relationship with money for the better.
Sincero starts by talking about how our parents, society, and the media have programmed us to think about money, which has led to a lot of self-sabotage when it comes to our finances.
Sincero goes on to say that making money is not about working hard, it's about aligning yourself with the energy of money and attracting it into your life.
She talks about how our beliefs around money shape our reality, and how we can change our beliefs to attract more money.
Think and Grow Rich
Think and Grow Rich by Napoleon Hill is a classic personal finance book that really captures the wealth and success mentality of some of history's top entrepreneurs and investors.
The Mentality of Winners
The most successful entrepreneurs throughout history, from Andrew Carnegie to Henry Ford, have core similar traits.
1. Unwavering courage
3. A keen sense of justice
4. Definiteness of decision
5. Definiteness of plans
6. The habit of doing more than paid for
7. A pleasing personality
8. Sympathy and Understanding
9. Mastery of Detail
10. Willingness to assume full responsibility
These entrepreneurs also faced doubt from others.
Think and Grow Rich tells you how to stay the course and ignore others who doubt your ability to make money, break out of the rat race, and become a true boss.
Empower Yourself With Financial Education
These are just a few of the great money mindset books out there – make sure to add them to your reading list!
Rich Dad Poor Dad is our number one pick, but all of these books will help you change your relationship with money for the better.
If you're looking to manifest wealth and success, read one (or all!) of these books today.
There are so many resources for improving our financial IQ and taking control of our financial health, many free.
Absorb as much financial knowledge as you can so you can arm yourself you need with the tools to be financially free, live with peace of mind, and excitement for, rather than fear of the future.