In the journey to financial success, knowledge is power. Self-made millionaires often attribute their achievements to the wisdom they’ve gained from books. While many of these texts are available to everyone, they’re frequently overlooked by the average reader.
Let’s explore ten influential books that have shaped the mindsets and strategies of self-made millionaires. Some inspired business building, and others inspired the construction of seven-figure investment portfolios, but these books have all been quoted as inspirations by self-made millionaires.
Here are the ten books that self-made millionaires read that the average person ignores:
1. Rich Dad Poor Dad by Robert Kiyosaki
Robert Kiyosaki’s “Rich Dad Poor Dad” has revolutionized people’s thoughts about money and investing. The book contrasts the financial philosophies of Kiyosaki’s biological father (the “poor dad”) with those of his best friend’s father (the “rich dad”). Kiyosaki challenges conventional wisdom about money, assets, and liabilities through this narrative.
The core theme of “Rich Dad, Poor Dad” is the importance of financial education. Kiyosaki emphasizes that true wealth comes from understanding how money works and using that knowledge to build passive income streams. He encourages readers to think differently about assets, defining them not as things you own but as things that put money in your pocket.
This book has particularly impacted young investors, helping them shift their mindset from working for money to making money work for them. Kiyosaki’s teachings have guided many on the path to financial independence by focusing on economic intelligence and the acquisition of income-generating assets.
2. The Intelligent Investor by Benjamin Graham
Often hailed as the “bible of investing,” Benjamin Graham’s “The Intelligent Investor” has influenced generations of successful investors, including Warren Buffett. The book introduces the concept of “value investing,” a strategy that focuses on identifying undervalued stocks with strong long-term potential.
Graham’s approach emphasizes rational decision-making in an often irrational market. He introduces the concept of the “margin of safety,” which encourages investors to buy stocks at a significant discount to their intrinsic value, providing a buffer against potential losses.
One of the book’s most famous concepts is the “Mr. Market” analogy, which personifies the stock market as an emotional and sometimes irrational entity. Graham teaches investors to take advantage of market fluctuations rather than being controlled by them.
The enduring popularity of “The Intelligent Investor” among millionaires stems from its timeless wisdom on risk management, long-term investing, and maintaining a disciplined approach to wealth building.
3. Think and Grow Rich by Napoleon Hill
Napoleon Hill’s “Think and Grow Rich” is a classic self-help book that has inspired millions since its publication in 1937. Hill based his work on extensive research, studying the lives of over 500 successful individuals, including Henry Ford, Thomas Edison, and Andrew Carnegie.
The book outlines 13 principles for success, including desire, faith, and persistence. Hill emphasizes the power of mindset, arguing that your thoughts and beliefs are crucial in achieving wealth and success. He introduces concepts like the “mastermind principle,” which highlights the importance of surrounding yourself with like-minded individuals to achieve your goals.
One of the book’s key teachings is the power of visualization and autosuggestion. Hill argues that you can program your subconscious mind for success by clearly defining your goals and consistently visualizing their achievement.
Despite being written over 80 years ago, “Think and Grow Rich” resonates with modern readers, including many self-made millionaires who credit the book with shaping their mental approach to goal-setting and achievement.
4. The Millionaire Next Door by Thomas J. Stanley and William D. Danko
“The Millionaire Next Door” challenges popular perceptions of wealth and success. Through extensive research, Stanley and Danko reveal that many millionaires live surprisingly frugal lives, often in middle-class neighborhoods.
The book’s central thesis is that wealth is more often the result of disciplined saving, budgeting, and investing rather than high incomes or flashy lifestyles. The authors identify several common traits among millionaires, including living below their means, allocating time and money efficiently, and prioritizing financial independence over social status.
One of the book’s most powerful insights is that many high-income professionals often have low net worth due to their spending habits; at the same time, seemingly ordinary individuals can accumulate significant wealth through careful financial management.
By demystifying the path to wealth, “The Millionaire Next Door” has inspired many readers to adopt a more disciplined approach to personal finance, focusing on long-term wealth accumulation rather than short-term consumption. This book gave me the right financial mindset to achieve a seven-figure net worth.
5. Everyday Millionaires by Chris Hogan
Chris Hogan’s “Everyday Millionaires” builds on the foundation laid by “The Millionaire Next Door,” offering a contemporary look at how ordinary people build extraordinary wealth. Based on a more recent study of over 10,000 American millionaires, the book debunks common myths about wealth and provides a roadmap for achieving millionaire status.
Hogan emphasizes that becoming a millionaire is not about luck or privilege but consistent financial habits and wise decision-making. He highlights key behaviors such as avoiding debt, living on a budget, and investing consistently over time.
One of the book’s most empowering messages is that millionaire status is achievable for people from all walks of life. Hogan shares stories of teachers, firefighters, and other everyday professionals who have built seven-figure net worths through discipline and smart financial choices.
Focusing on real-life examples and practical advice, “Everyday Millionaires” encourages readers to believe in their ability to build wealth and provides them with the tools to do so.
6. The Total Money Makeover by Dave Ramsey
Dave Ramsey’s “The Total Money Makeover” offers a step-by-step approach to achieving financial freedom. Known for his no-nonsense style, Ramsey provides practical advice for getting out of debt, building wealth, and securing a stable financial future.
The book introduces Ramsey’s famous “Baby Steps” method, a systematic approach to financial management that starts with building an emergency fund and progresses through debt elimination, retirement savings, and wealth-building.
One of the book’s key concepts is the “debt snowball” method, which encourages paying off debts from smallest to largest, regardless of interest rates. This approach provides quick wins that motivate people to stay on track with their debt repayment plans.
Ramsey also emphasizes the importance of living on a written budget, avoiding consumer debt, and investing for the long term. His straightforward advice and motivational style have helped millions of readers transform their financial situations and set themselves on the path to wealth.
I listened to Dave Ramsey when he got his start in radio in Nashville over 30 years ago, and his teachings put me on the right track in my personal finances, building the foundation for my later wealth building.
7. The 7 Habits of Highly Effective People by Stephen Covey
While not explicitly focused on finance, Stephen Covey’s “The 7 Habits of Highly Effective People” has been instrumental in shaping the personal and professional development of many self-made millionaires.
Covey’s seven habits provide a holistic approach to personal effectiveness, emphasizing principles like proactivity, beginning with the end in mind and seeking first to understand, then to be understood. These concepts can lead to more effective decision-making and goal achievement when applied to business and personal finance.
The book emphasizes personal responsibility and integrity and strongly resonates with successful entrepreneurs and investors. Covey’s concept of the “abundance mentality” – the idea that there are enough resources and success to share with others – has influenced many millionaires’ approach to business and wealth creation.
Focusing on character development and principle-centered living, “The 7 Habits” provides a foundation for success beyond mere financial strategies, contributing to overall life satisfaction and effectiveness.
8. Zero to One by Peter Thiel
Peter Thiel’s “Zero to One” offers a unique perspective on innovation and entrepreneurship, influencing many tech and startup founders. Thiel, a co-founder of PayPal and an early investor in Facebook challenges conventional business wisdom and encourages readers to think differently about creating value.
The book’s central thesis is that true innovation comes from creating something entirely new – going from “zero to one” – rather than iterating on existing ideas. Thiel argues that the most valuable businesses of the future will be those that create monopolies through unique technology or business models.
Thiel introduces concepts like the importance of proprietary technology, the power of network effects, and the value of being the first mover in a market. He also emphasizes the importance of having a clear vision for the future and working towards making that vision a reality.
For aspiring millionaires, “Zero to One” provides a framework for thinking about innovation and value creation that goes beyond traditional business strategies. It encourages readers to seek unique opportunities and build businesses that dominate their markets.
9. Good to Great by Jim Collins
Jim Collins’ “Good to Great” is a research-based exploration of what makes companies transition from average to extraordinary. While focused on corporate success, many of the book’s principles have been adopted by self-made millionaires in their wealth-building strategies. This book inspired Jeff Bezos in the early days of building Amazon.
Collins introduces several key concepts, including the “Hedgehog Concept,” which encourages focusing on what you can be the best in the world, and the “Flywheel Effect,” which describes how consistent effort in the right direction can lead to breakthrough success.
The book also emphasizes the importance of disciplined people, thought, and action in achieving greatness. Collins’ research shows that great companies (and, by extension, great wealth builders) focus on getting the right people “on the bus” before deciding where to drive it.
For millionaires and aspiring millionaires, “Good to Great” provides a framework for thinking about long-term success and the importance of consistency and focus in achieving extraordinary results.
10. The Little Book of Common Sense Investing by John C. Bogle
John C. Bogle, founder of The Vanguard Group, presents a compelling case for low-cost, long-term investing in index funds in “The Little Book of Common Sense Investing.” This approach has gained significant traction among self-made millionaires who appreciate its simplicity and effectiveness. This book has inspired many self-made millionaires to focus on building seven-figure portfolios in low-cost S&P 500 index mutual funds or the $SPY or $VOO ETFs.
Bogle argues that trying to beat the market consistently is a losing game for most investors. Instead, he advocates for capturing market returns through low-cost index funds that track broad market indices. This strategy minimizes fees and taxes, which can significantly erode investment returns over time.
The book emphasizes the power of compounding returns and the importance of staying the course during market volatility. Bogle’s approach appeals to many self-made millionaires because it allows them to focus on their businesses or careers while their investments grow steadily.
By promoting a disciplined, long-term approach to investing, “The Little Book of Common Sense Investing” has helped many readers build substantial wealth without the need for complex investment strategies or constant market monitoring.
Conclusion
These ten books offer knowledge that has guided many self-made millionaires on their path to financial success. Each book provides unique insights that can transform your approach to personal finance and success, from challenging conventional wisdom about money to providing practical wealth-building strategies.
While these books are readily available, they’re often overlooked by the average reader. However, by delving into these texts and applying their principles, you, too, can gain the knowledge and mindset that have helped create countless millionaires. The journey to financial success starts with education, and these books provide an excellent foundation for anyone aspiring to build lasting wealth.