These five wealth mindset books quite literally changed the way I approached investing. Each one had its own unique effect on my mindset.
Some showed me what it takes to become wealthy. Others taught me how to be the kind of person that takes those necessary actions. And still others have explained the details of making taxes work in my favor.
I’ll share the five most important books in shaping my wealth building mindset, then I’ll share five books I want to read over the next year.
5 Wealth Mindset Books I’ve Read
I’ve used books to increase the average of the five people I spend the most time with. These five books all changed the way I thought about money and about investing.
They are listed in the order I read them in.
1. Rich Dad Poor Dad
Sure, I’d read some investing books before, but Rich Dad Poor Dad was the catalyst that changed me from a person interested in investing to an investor.
I think this was the first book I read that effectively highlighted the issues in how the middle class thinks about money. I grew up in the U.S. in the middle class, and between my friends, family and schooling, I came to believe that the best way to become wealthy was by getting the highest paying job. And you get the highest paying job by getting the best education.
The problem is that’s not how you get rich. Another book that’s not on my list (The Millionaire Next Door) shows through case studies and numerical analysis that your base income level is not correlated with your ability to accumulate wealth.
Rich Dad Poor Dad shows that the middle class path leads to financial mediocrity. This book will not only change the way you think about wealth, but it will light a fire in you to actually start taking action.
2. Tax Free Wealth
After reading Rich Dad Poor Dad, I immersed myself in real estate investing. I probably read 8-10 books about fixing and flipping, analyzing deals and managing long term rental properties. None of those books significantly changed my wealth building mindset.
About a year after buying my first investment property, Kate came across Tax Free Wealth and told me to read it.
This book seriously changed how I thought about investing. When you work a full time job you’re well aware that large chunks of your paycheck will go to paying taxes. But Tax Free Wealth showed me that the government creates tax laws to specifically rewards certain types of investing.
As you become a more seasoned investor, taxes should start to shape your investing decisions and Tax Free Wealth is a great book to get you started on the right foot.
3. Think and Grow Rich (and The Miracle Morning)
I’m not sure where I read or heard this, but there’s this idea that you won’t be successful until you become the type of person who attracts success. I’ve completely bought into that idea, and these two books map out the path to becoming that person who attracts success.
Think and Grow Rich is a compilation of the thoughts of the most successful people of the early 20th century. The author Napoleon Hill interviewed people like Henry Ford and Andrew Carnegie to create this list of habits and mindsets that lead to success.
The Miracle Morning is a practical guide to carving out the time and creating the habits that help you change your thinking over time.
4. The Total Money Makeover
Dave Ramsey is a polarizing figure. I decided to read The Total Money Makeover so I could feel better about hating on his methodologies. I ended up re-evaluating my thoughts on using debt in investing.
I’ll be honest, I still disagree with a lot of the takeaways from The Total Money Makeover. But what I loved about this book was the relentless attacks on the misconceptions most people have about money. There are a lot of habits that people buy into without thinking that straight up make them poorer. This book points out just about every one of those.
I think this could be a great book to read before you really dive into investing.
I still fully believe in the value of debt in investing, but this book also changed the way I thought about my long term investing strategies and use of debt.
5. The E-Myth Revisited
One of the rites of passage for cash flow investors is the point where you run out of time in the day. Kate and I both had full time jobs, and we also had four investment properties and a 1 year old daughter. We started running out of time and we were having trouble keeping up with the work required by our three Airbnb properties.
The E-Myth Revisited showed me the magic of the franchise model. It walks through what allowed companies like McDonald’s to grow so effectively and how you can use those same techniques to create a business that runs without you.
This book is an essential read for anyone starting a business, running a business or finding themselves without enough time in the day to do it all.
5 Wealth Mindset Books I Want To Read
These next five books are on my list to read. They may not appeal to every investor, but I thought I’d share to give you all a taste of how I choose my books.
1. The Website Investor
The Website Investor is a book about buying websites as a form of investment. Thus far, Kate and I have really only invested in real estate, but the best cash on cash returns can be found investing in business.
I’m planning to purchase a website in the next 12 months, so naturally I want to start learning from people who have done it successfully. And the author of The Website Investor purchases websites full time.
Apparently the book focuses on the auction side of buying websites, which is where the best deals can be found. This is in contrast to purchasing through web brokers, where the website has already been vetted and it can be much harder to find online businesses at great prices.
Either way, I’m eager to start reading this book so I can feel better informed about my future website investment.
2. Buy Then Build
Buy Then Build is another book I’m targeting to increase my knowledge for a website acquisition.
There are two primary paths to entrepreneurship. The first is the path of the startup company. A person or group of people have a business idea and work tirelessly to bring that idea to life, and hopefully make it profitable. The second path is that of the acquisition entrepreneur.
An acquisition entrepreneur skips the startup phase and simply purchases businesses that are already profitable. Buy Then Build explores the path of the acquisition entrepreneur and shows how purchasing profitable businesses can be just as lucrative as startups, but much more stable.
3. Awaken the Giant Within
Tony Robbins is a household name in the personal development and wealth mindset world, and I bought his book, Awaken the Giant Within, for Kate last Christmas. My intention was to get her a personal development book that could support a jump to the next level of success.
Maybe you reach that level by identifying fears or the life shaping experiences of your past. Awaken the Giant Within addresses the huge task of mastering yourself, and that’s what I hope to get closer to by reading.
4. The Value of Debt in Building Wealth
Carrying debt is a huge part of my approach to investing. There isn’t a lot of material out there talking about debt as a means to building wealth. As long as I’m carrying significant amounts of debt in my investing, I want to continue to learn more about the goods and the bads.
The Value of Debt in Building Wealth is a book specifically addressing the problem of debt in our financial lives. So naturally, it’s getting added to my reading list.
5. The Compound Effect
Honestly, I want to read this book because I love the title. I’ve long believed that success is a result of years of focus and action towards the same goal(s).
The Compound Effect should help me reaffirm that belief. I’m all for being aware of your personal biases, but there’s also nothing wrong with building self confidence by affirming your biases.
I like to read books sometimes that give me the assurance that I’m on the right path, because that path is long and difficult.
The Book I’m Reading Right Now
I try to always keep a book on my bedside table that will increase my investing knowledge.
I worked in a marketing department for two years, but I worked on the company’s website. I never really learned the ins and outs of marketing.I believe understanding human nature and what compels people to buy things makes us better investors.
It helps business owners sell more of whatever they’re selling. It’s helps real estate investors find the right long term tenants and book more short term guests. And it helps us understand ourselves so that we can make more logical decisions about what is a good investment or a bad one.
I believe reading is an important part of any path to success. Of course your knowledge of your trade will increase the more you read, but I believe there is an equally important use.
You can increase the average of the five people you spend the most time with by reading. You can effectively “spend time” with these successful authors by absorbing their thoughts.
I hope the books on my list will help you create more wealth in life and in your finances.