I’ve Read 39 Personal Finance Books—These 7 Lessons Changed My Life

Sandip Das

So many personal finance books dominate top book review sites and bestseller charts. But do they all really offer something unique? I read 39 personal finance books in 2024, and here’s what I found.

What if there are some basic truths, but hundreds of writers need to churn out new books on the same subject? What are they going to do? Exactly! They’re going to present old wine in new bottles. This is precisely what happens in the personal finance space.

Personal finance doesn’t need to be something super complex. And you definitely don’t need to read 20 books or 10 blog posts to put your finances in order.

I read for a purpose. I read with the outlook of a seeker who’s always searching for the most fundamental areas of a subject. Experts call it “First Principle Thinking.” (For the sake of keeping this post to the point, I am grudgingly avoiding the temptation to unleash my philosophical side.)

So, last year I read 39 personal finance books (I’ll share the list in the next post), and here are the 7 fundamental points that cover everything you need to know to never worry about money again.

Let’s dive in.

Lesson 1: Yes, you CAN attract money, but there’s a catch

I know, I know, manifestation is a hot new social media trend. People are manifesting—teaching others to manifest tons of money, swanky sports cars, supermodel life partners, and holidays in the Bahamas, all while lying on their couches in polka-dotted pajamas.

I hate to break the bad news to you. Manifestation doesn’t work that way.

Yes, you can attract money and wealth and everything you desire. But here’s the catch: You cannot simply WISH for wealth and win the lottery the next day. (Another spoiler: Most lottery winners lose their money and go into debt within a few years!)

The only way you can attract money is by creating value and selling it to someone who needs it. That’s the basic, and it will always remain the same.

Know a language well? Teach it to beginners for a fee.

A fitness enthusiast? Start an online training program.

Have a flair for convincing people? Earn sales commissions by selling digital or physical products for companies.

Good with words? Write for individuals or companies who are willing to pay.

Understand math well? Teach online.

Here’s the formula that encapsulates the idea:

When you have value to offer, you need to explore ways to sell it to the highest bidder! Trust me on this—I’ve been there, and done that.

And never rely on just one income. No matter how secure your job feels, it helps to build one or two additional streams of income, especially passive ones (stuff that requires minimal involvement but keeps paying every month).

Once you’ve started generating income, you’ve gotta learn how to keep it.

Lesson 2: Saving is not a factor of income, it’s a matter of habit

There are two types of people: people who save, and people who have an excuse.

The first set saves regardless of their income. The second set doesn’t save, regardless of their income!

Which group do you find yourself in? Well, for most of my life, I belonged to the second group until very recently. Now that I’m a new member of the first group, let me tell you how to join this elite club.

One thing I learned about saving is that it has almost nothing to do with how much you earn. Underline it, read it aloud, print it, and paste it on your desk: Saving is not a factor of income; it’s a matter of habit.

So, like every habit, you need to start small to build it. Focus on the process, not the outcome. Start with the tiniest amount you can save today. It could be $5, $10, or even $1.

Now, transfer that amount to a separate bank account and repeat the process every week or month. At first, it doesn’t matter how much you’re saving—or how slowly your savings are growing. In fact, your savings might grow at the pace of a snail on vacation.

But what really matters is that you’re building a habit. It’s like brushing your teeth after waking up or taking a shower before leaving for work—simple, automatic, and something you do without even thinking about it. Eventually, you’ll be so used to it, that you’ll wonder why you didn’t start saving earlier.

Now, let’s talk about the big elephant in the room.

Lesson 3: An emergency fund is not just for emergencies

Most personal finance books talk about building an emergency fund for unexpected medical bills or last-minute gifts for weddings you weren’t invited to.

Yes, emergency funds help you deal with all sorts of uncertainties in life. They come in handy when you have expenses you weren’t anticipating. If you have an emergency fund that covers 3-6 months of your expenses, it’ll help you handle everything from a flat tire to a job you’re not too fond of.

But above all, emergency funds help you sleep better. According to the Mind Over Money survey by Capital One and The Decision Lab, 77% of Americans suffer from varying levels of anxiety about their finances.

An emergency fund creates minimal financial security and helps calm your mind. With everything going on in the world—wars, AI replacing jobs, and the cost of living skyrocketing—you don’t want money woes to add to your anxiety.

But despite knowing the need for an emergency fund, why aren’t we all able to build one? Here's a potential reason.

Lesson 4: Do you really need that stuff?

Look at all the small and big purchases you made in the last 30 days, starting with that cool pair of socks and ending with the overpriced avocado toast you grabbed at brunch."

Now, how many of those purchases were based on real needs?

Everything?

Look again. Look closer. Look like Sherlock Holmes inspecting a suspect’s sleeve for a single speck of dirt.

How much of your hard-earned money went to things you could live without?

Did those $50 deserve to go toward that cute pink top you bought just because it was on sale?

Did you really need to spend that much on coffee, dining out, salon visits, or concert tickets—especially when your emergency fund is itself in an emergency?

I know, I know. We often swipe the card first, then think, which is the complete opposite of what experts recommend. So, how do you fight the impulse to hit “buy now”?

Having committed all the ‘crimes’ I’m warning you about in this post, I know two tricks that work well:

First: Keep track of your expenses and categorize them into: 1. Things you need (rent, food, transportation, and internet bills) and 2. Things you buy for 10292020 other reasons (someone you love bought something, something’s on sale, or someone recommended it).

Second: Have a 15-day cool-off period before making a purchase. If you’re desperate for those cool new sneakers, wait 15 days and see if you’re still alive. I, without a medical degree, can confidently say you will survive without them.

But once the cool-off period is over and if you still think you need them, go ahead and buy them. Now you’re sure it’s not an impulse purchase. So, buy it guilt-free!

Lesson 5: There are no good and bad debts

All debts are bad. Period.

In fact, there are three types of debt: 1. Bad debt (student loans and mortgages), 2. Very bad debt (credit card debt), and 3. Suicidal debt (payday loans).

Many money gurus talk about how mortgages or student loans are "good debt" for various reasons.

Here’s my take on it:

You need to avoid all debt at any cost. Before taking out student loans, exhaust all scholarships, grants, and financial aid. Look for cheaper colleges/universities that offer comparable quality at much lower fees.

Before taking out a mortgage, ask yourself: Do you really need to buy that house right now? Or can you rent or live in a more affordable place?

It’s easy to get caught up in the idea of homeownership as a sign of success, but too many people stretch their finances too thin just to own a house. Instead, focus on saving aggressively, building wealth, and only buying a home when you can do so without massive debt.

The peace of mind that comes with a debt-free life is incomparable to the comfort of a bigger house with a mortgage hanging over your head for decades.

Having debt means being tied to a job you hate, but you can’t leave because the next installment is two weeks away.

Debt means missing out on big career moves, taking risks, or starting the business you’ve always dreamed of.

One thing you MUST do with any type of debt is: Simply AVOID it.

Avoid debt like your dog avoids the vacuum cleaner—running in the opposite direction at full speed, tail between its legs, and pure terror in its eyes.

Lesson 6: Don’t talk to your neighbor, literally...

Okay, maybe not literally. But take it with a pinch of salt (and paprika, if you like). We all know that one neighbor, always showing off their new car, fresh patio furniture, or exotic vacation. Meanwhile, you’re just figuring out if you can afford guacamole on your taco tonight.

It’s easy to fall into the comparison trap—“Wait, they have a new 4K TV, and I’m still rocking my 2008 flat-screen that cuts off the top of every Netflix movie?”

But here’s the thing: Your neighbor’s financial choices are like their Instagram feed—curated to perfection and probably not as glamorous as they make it seem. Focus on your own path, build your own wealth, and stop trying to outdo someone who’s likely stressing over their own debt. Keep in mind: The Joneses? They’re probably just a couple of people trying to keep up with the Smiths.

So, while they’re out buying the latest gadgets, you could be sipping coffee, laughing at your savings account, and feeling way less stressed. And you know what? That’s priceless.

Lesson 7: What does it have to do with consciousness?

Here’s the key: Money isn’t everything—it’s just a tool. It’s like a car. You don’t buy a car for the sake of having a car. You buy it to get you where you want to go. Same with money.

Living consciously means being aware of how you earn, save, and spend. Don’t get caught up in what others are doing. Do you really need that shiny new gadget or that fancy dinner? Probably not. Focus on what you actually need—your essentials, your goals.

Money worries can distract you from achieving your bigger, more meaningful goals. And trust me, the peace of mind that comes from solving your money problems allows you to focus on what matters most: your dreams, passions, and life’s true purpose.

So first, fix the money woes, then live consciously. Spend consciously. The rest will follow.