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Financial books are the self-help literature to your bank account. Giving you a strong understanding of various financial concepts to help you manage and grow your finances all while maintaining a healthy bank account.

 

To assist in improving financial literacy, we read 5 famous finance books and identified some of the key points each offers to help you become more financially savvy*.

Rich Dad Poor Dad - Robert Kiyosaki and Sharon Lechter

For many, retirement is a celebration as it marks the end of working life. However, retirement can also bring a heavy dose of anxiety and stress. It is because many people do not have enough money to support their lifestyle after retirement.

 

As the saying goes, failing to plan is planning to fail. The key to making retirement a celebration is early planning. Some of the early preparation stages you can start now are paying down debt, updating your estate beneficiaries, arranging for your medical needs, and planning for your post-retirement lifestyle.

 

The Total Money Makeover - Dave Ramsey

Although it is necessary, education comes with a big price tag. But learning has no age limit. Whether it’s for you or your children, setting up a university fund will significantly reduce the financial burden when the time comes. By doing this, you can avoid taking up student loans that will increase your debt over time.

 

But, what is a strategic way to save up for university? Start by opening a savings or money market account that pays interest on your deposits. Although most savings accounts offer small interest rates, they are a terrific place to keep your budgeted funds while you consider other options. Many banks offer automated transfers that send money from your checking account to your savings account to assist you in saving.

 

Don't be daunted by the amount you may have to save. Small sums of money can grow significantly through compounding and wise planning if committed early.

The Psychology of Money - Morgan Housel

We can’t know what tomorrow will bring. While emergencies can’t always be avoided, having emergency funds can take some of the financial sting out of dealing with these unexpected events.

 

An emergency fund is a separate savings account that is used to pay for unexpected expenses. It shouldn't be viewed as a nest egg or included in a long-term savings strategy for paying for university expenses, a new car, or a trip. Instead, this money acts as a safety net that is only used in times of emergency.

A Beginner's Guide to the Stock Market - Matthew R. Kratter

 

The amount of money you'll need to cover a large expense, such as paying for a wedding, a down payment on your first home, or a car loan, might be overwhelming. Calculating how much you will need to save each month to reach your goal is an excellent place to start.

 

Say, for instance, that you want to have RM10,000 saved up to cover some of the wedding costs and that you want to get married in 18 months. RM556 per month results from dividing RM10,000 by 18 months. That surely sounds like a substantial sum of money, and in a sense, it is.

 

Regardless of the product, setting aside a bit of money for it every month will ensure that your cash flow is not disrupted when you make the purchase. 

Your Money or Your Life -  Joseph R. Dominguez and Vicki Robin

 

Working long hours with little savings at the end of the month is a situation many Malaysians find themselves in, but what if there was another way? This is where the duo who wrote Your Money or Your Life comes in. 

 

The authors speak of 3 key concepts: 

 

  • Financial Intelligence - knowing what money is, how it functions in your life, and how much you bring in and spend. 
 
  • Financial Integrity - learning the impact of your earning and spending habits to help you identify what is your peak fulfilment and what is simply excess.
 
  • Financial Independence - gaining sufficient cash flow for your wants and needs, helping you get to the point where you no longer feel guilt or regret about your financial decisions. 

 

The book aims to help you create a new financial road map. 

 

Your Money or Your Life will improve your financial literacy and give you a new perspective on money to help you live your best life!  

 

Want to learn more about managing your finances? Visit one of CIMB's branches today to speak with one of our experts and put yourself on the road to financial independence or click here for more related articles!

 

*The tips offered in this article are shared in goodwill, we neither endorse nor are associated with the writers

 

 

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.