The Top 5 Financial Literacy Books Every Black Person Should Read

what is that black world today we're gonna discuss the top five financial books you need on your shelf stay tuned [Music] what is up your black world welcome you here with your host Chris and today we're gonna talk about the five financial books you need on your bookshelf now I did put these in a particular order going from least to greatest yes I like to save the best for last so if you're interested in what I think is the best you can go ahead and skip to end always make sure to LIKE and subscribe it helps my channel greatly we'll have further ado let's go ahead and get into it the first book that I'm gonna recommend is a financial book that's for those who are just starting out I wish I would have got this in high school but even in the beginning of high school or a college student can use it the book is called the Wall Street Journal is the Wall Street Journal's guide to starting your financial life so like I say this is a very basic book but there's some things that I really like about this but first and foremost you can read this book all the way through if you like but honestly the book is made to be like more of a hand guide and this is basic financial literacy so we're talking about how to establish your checking account how to establish your savings account which credit cards to choose if you decide to go that route how the source of student loan how to get a mortgage how to finance a vehicle different things like that oh also how to finance your retirement account I wish I would have stumbled across this book when I was 18 years old it is extremely easy to read and extremely easy to understand so with this book in mind I'm gonna roll over to the next book now the next book is also an entry-level financial literacy book geared more towards the younger crowd but if you're just starting out with financial literacy it's a great book to have on your bookshelf for both you and your kids the next book I'm gonna recommend is written by DK okay that's the publisher it's called how many works now this book is not just focused on personal finance it's focused on economics and Finance in general when you have you ever turned on the news and what stocks and bonds going up and down means to you have you ever wondered how does a recession happen have you ever wondered what really is money these are key concepts that you need to learn in managing you not only your finances but knowing how to maneuver through the financial landscape this book is great for teaching children it has lots of pictures in it it's a bare-bones book what I mean by that is that it tells you what you need to know why is it important for you write a couple of these chapters with my son now he's not he's only eight so he's not ready for a lot of the things in this book but it's never too early to get him started some things that I want to highlight in this book is uh government finance so what do recessions come from if you were like me and lived through 2008 you were kind of scratching your head why well how money how can money this dryer also how financial institutions create profit there's a good chance that either you're gonna want start your own business or to work for another business so it's important to know how these businesses generate a profit it talks about money basics where did money come from how do we go from a bartering system where we used to trade for things to a system in which we spend paper currency to now a digital system where most of the currency in circulation is digital lastly it touches on personal finance how to accumulate wealth how to maximize your IRA how to invest for the future how to start a college fund so be sure to check this out it's something that you can share with your children and it never hurts to have it on your bookshelf so you can skim through it if some if you hear something on the news that you quite don't understand it's mostly gonna be covered in this book in terms of finance alright now we're gonna get into the meat and potatoes the next book that I'm gonna recommend is called The Millionaire Next Door now this book opened my eyes to a lot of things this book is written by Thomas Stanley and William D Danko what this book gave to me frugality is the cornerstone of wealth and what I what they mean by that is not being a hyper not going out and spending your whole paycheck what the book does it takes you into the homes of millionaires when the book talks about millionaires they're talking about 1 to 10 million system majority of millionaires in United States fall in that category the cool thing about that is that you can make 1 to 10 million dollars in your lifetime so the book likes to take you into the household and really talks about how do millionaires spend their money do they buy custom custom suits or do they buy off the rack what's the most of most millionaires have ever spent on a pair of shoes you will be surprised how do millionaires choose to our house what do they look for what is important to most millionaires and we're talking about millionaires who not only have the millions on paper their house and assets but also have the capital so this is a really good book if you're into studying about how millionaires live and what they do with their time and money so this is the millionaire next door I'm gonna recommend this book go ahead and pick it up and see if you like that now we're gonna get into the next book and this is one of my favorite books I've mentioned it in other videos and this book is called dollars and cents so if you watch my last video I talked about dollars and cents but we're gonna go a little bit more in depth so this book discusses the psychology of spending ideally why do we feel like we're getting a better deal when we see a markdown price so have you ever went into the store and saw 59.99 and then it gets marked down and now it's $39.99 or the MSRP and what you're actually getting that out that's a psychological trick that suppliers do to get consumers to purchase their goods and even though some of us may know that it still works pretty well or us they still wouldn't be doing it the book also talks about why it's easy to tack on an extra hundred dollars when we've already spent a thousand dollars let me give an example of that so let's say you make a purchase you bought a new TV and the TV is a couple thousand dollars and you feel really proud about your purchase but then the salesperson says you need a new HDMI cable for that TV how much does the cable 50 bucks 100 bucks now normally if you were just going into the store to buy that cable you normally wouldn't spend that much money on the table but since you've already makes a thousand dollar purchase for the TV it's easier to shell out that extra $100 for that added accessory that's a psychological trick so pay attention to that a real important thing that the book is talking about is prolonging pain so with prolonging the pain of spending we're talking about using credit cards and what it does do is psychologically when we use credit cards to pay for something versus when we pay for cash I'm not gonna go too in depth but imagine this if you want something let's say you're making a consumer purchase when you buy that consumer when you buy that product you're gonna spend that money right then in there and you're gonna look at your bank account that night and you're gonna feel that pain however credit card companies when you use a credit card you don't feel the pain right away because one it takes a couple days for that expenditure to hit your account and then two you have time to pay that off so you still have the capital but you also went to debt buying that consumer purchase so that's something that it's a psychological trick that we do to ourselves and this book makes you all too aware of it the next book that I'm gonna discuss is certainly one of the greatest books that I think I have in my library by reading the book and implementing the things inside of this book I was able to get myself out of over $10,000 in debt plus another eight thousand dollars in caught vehicle deck I was able to build an emergency fund and I was also able to fully finance my IRA for the first year start an IRA and then raise my credit over 200 points just by using the things in this book now this book is Dave Ramsey's the Total Money Makeover now if you watched a couple of my past videos you know that I'm a fan of Dave Ramsey watches watch him on YouTube I watched some of the stuff that he says and you know he was tell you I love his bluntness he will tell you straight up that you are wasting your money now none of us are perfect with this money stuff okay we're all learning but Dave Ramsey is one of the best people to learn from if you are just starting out in your financial voyage so I'm gonna touch on some key highlights from this book I'm not gonna go into each and every one of them but I'm gonna give you a little tidbit so it'll whet your whistle and get you to go out and actually go purchase this once again I'm gonna put all the links to pry these books in the description down underneath this video so you can go on Amazon and read a sample of the book and actually buy the book and get it into your library so the first thing the zero balanced budget now the zero balanced budget saved me in a number of ways so balancing its creating a budget and accounting for every dollar you spend all the way to zero so you're not gonna have an extra two hundred dollars laying around that you can do whatever you want with it's gonna be accounted for you're gonna put that budget into it you're gonna put that money into a category so you can actually spend it and not go over it okay next is how to save $1,000 this is one of the most key things I took away from the book is building that first emergency fund it was hard for me to put a thousand dollars away when I first started next is the debt snowball this is one of the most powerful methods to get out of debt and pay off all the things that you owe whether you have things in collection or you currently have debts that you need to settle the next one is finishing actually finishing your emergency funds so we're supposed to have three to six months preferably even nine months of emergency savings so that's what you need to survive per month times three six or nine next the books discusses maximizing your IRA or maximizing your retirement whether it's a 401k or an IRA a traditional Roth now by all means I'm no financial guru I'm not any of that but at the same time this book has helped me to start my own IRA and also it helped me to invest when I was in the military also the college fund so what book I've started a five to nine for my children to try to get them a leg up so when they go to school they're gonna have some change to play with and then they can make better decisions they won't have to go as in debt or hopefully if not a not into any debt at all to go to college lastly the book talks about paying off mortgage so if you're a homeowner and you're looking at how do I pay off my mortgage I have a 30-year mortgage you don't want to spend the next 30 years of your life paying that off through strategic budgeting you can put more into your mortgage to help you pay off that house a lot sooner so this book has financially changed my life in more ways than one it helped me start budgeting and like I said I'm not perfect with this financial stuff I'm still learning just like you are this book has given me the most out of any financial book on my bookshelf I go back and I read it often when I feel like I'm slipping or I look at my when I look at my budget and something is not quite meeting I like to go back and say hey where did I slip up so this is the best one if you don't have this book I'm gonna put the link in the description so you can go down and get it and make sure that you added to your library collection okay so this is Dave Ramsey the Total Money Makeover so those are my recommendations for the top five financial books that you need on your show whether you're just starting in your financial journey you're coming from a bad place like I did where your credit score was really low and you had a lot of debt and you didn't have any savings and you were going from paycheck to paycheck or you just need to retune some things to get right back on track those books will get you going in the right direction be sure to hit like and subscribe to my videos it helps my youtube channel out if you would like to see me read another financial book drop that title in the comments I'll do my best to read the book and then I'll share what I think about the book and what I don't like about the book alright thank you and as always live deeply in smile

Channel: Chris Coursey

Views: 5,820

Rating: 4.972477 out of 5

Keywords: Black book review, Top 5 books, Every black person should read, Financial Literacy, Black Finance, African American Finance, Black Scholars, Black readers, How to save money, Black people saving money, Credit repair, Black book recommendations, Black books, African American Book Reviews, Top 5 Black Books

Id: 4j0wbAbSLlU

Length: 12min 49sec (769 seconds)

Published: Sun Jan 12 2020