Let’s face it; we don’t budget the way our parents did. Budgeting sounds like a boring, tedious task that limits us from enjoying and experiencing the things we want in life. That’s why it’s not surprising that over 40% of Americans don’t have a budget that they can consistently stick to. Furthermore, unexpected costs such as home repairs, automobile repairs, and other surprising events can completely cripple your financial plan. In this article, we review the 7 best budgeting books for 2021.
In 2020, we experienced the highest unemployment rate since the Financial Crisis of 2008. Instantly, millions of people lost their jobs, several of them living paycheck-to-paycheck with only unemployment payments to get by. If anything, this serves as a lesson that having a budget plan ready, is essential to prepare for the rainy day, month, or year.
Total Money Makeover – David Ramsey
This is one of our favorite budgeting books. It’s ideal for beginners and helps pave the path towards financial freedom. Total Money Makeover was written in 2003 but is still wildly popular as it has been on the New York Times bestseller list for over 500 weeks with over 5 million copies sold.
The Total Money Makeover is all about making over your financial situation. This is all based around Dave Ramsey’s baby steps that will help you get out of debt, stay out of debt, and do great things with your money.
Regardless of how old the book is, it provides a practical approach to managing your finances that are still very much applicable today. These steps include: Saving for an emergency fund, planning for retirement and saving for kids college.
If you’ve been questioning where to start, this is a great book to read.
Broke Millennial – Erin Lowry
Broke Millennial offers a refreshing perspective on budgeting. This book was written for millennials by a millennial. The author goes beyond the standard debt and savings topics. she also covers subjects such as:
- Understanding your relationship with money
- Managing student loans
- Having a frank conversation about finance with your partner.
These are scenarios that happened in real life and are rarely written about. Specifically, student loans’ burden can be very daunting for someone, especially straight out of college and trying to plan their financial future. Broke Millennial provides a funny no non-sense approach to budgeting and is well worth the time to read
The Everything Budgeting Book – Tere Stouffer
Are you looking for practical ways to stretch your paycheck? Between working and maintaining a home, saving money can be difficult; you’ll learn to use your money wisely today and prepare for tomorrow.
The Everything Budgeting Book provides a step-by-step guide that shows you how to:
- Improve spending patterns.
- Save on everyday expenses.
- Keep finances in order.
- Prepare for unexpected events.
- Plan for the future.
Overall, this book a good plan of action on addressing spending and savings while planning for the future.
The Financial Diet – Chelsea Fagan
Marketed as the personal finance book for people who don’t care about personal finance, Chelsea Fagan, has a sarcastic and tough-loving but humorous tone. She interviewed many powerful women in writing this book and provides wonderful summaries of each individual’s unique advice.
The Financial Diet gives you tools to make a budget, understand investments, and deal with your credit. More than just looking at your money, the book takes a look at your lifestyle and the social factors that play into your financial situation while covering a variety of topics that include: Budgeting, investing, career advice, cooking and food tips, home, love, and relationships as they relate to your finances.
Why Didn’t They Teach Me This at School? – Cary Siegel
Why do high schools and colleges require students to take English, math, and science courses, yet have absolutely no requirements for students to learn about personal money management? Why Didn’t They Teach Me This in School? was initially developed by the author to pass on to his five children as they entered adulthood. As it developed, the author realized that personal money management skills were rarely taught in high schools, colleges, and even in MBA programs.
Unlike many of the personal money management books out there, Why Didn’t They Teach Me This In School is a quick, easily digested read that focuses more on the qualitative side than the quantitative side of personal money management. The principles are not from a textbook. Rather, they are practical principles learned by the author as he navigated through his financial life.
How To Manage Your Money When You Don’t Have Any – Erik Wecks
Unlike many personal finance books, How to Manage Your Money When You Don’t Have Any, was specifically written for people of all income levels who struggle to make it every month. It provides both a respectful, no-nonsense look at the difficult realities of life after the Great Recession and a hope-filled, easy-to-follow path toward better financial stability for even the most financially strapped households.
Created by a financial expert who hasn’t struck it rich, the book offers a first-hand story of financial survival in the face of rough times. Rather than emphasizing wealth creation, How to Manage Your Money When You Don’t Have Any teaches readers to do the best they can with their income no matter its size. Content-rich, personal, and jargon-free, the book is opinionated and, at times, humorous. It is meant to be a quick read full of current everyday references, which will appeal to the average reader just struggling to make ends meet.
Your Money or Your life – Vicki Robin / Joe Dominguez
Your Money Or Your Life is different than other personal finance books because it emphasizes choice, freedom, and fulfillment rather than deprivation and discipline. You’ll learn that money is life energy and how to become conscious of your money’s movement, so it provides you maximum fulfillment. Whether you’re just beginning your financial life or heading towards retirement, this book will show you how to:
- Get out of debt and develop savings
- Save money through mindfulness and good habits, rather than strict budgeting
- Declutter your life and live well for less
- Invest your savings and begin creating wealth
- Save the planet while saving money
7 Best Budgeting Books for 2021 – Final Thoughts
The toughest challenge with budgeting is getting started with the process. Getting clarity on this path should be the first priority. While everyone’s situation is different, by choosing anyone of the 7 Best Budgeting Books for 2021, at a minimum, you will have a starting path to help guide you to financial freedom.
