My Top 5 books about Personal Finances and Financial Independence

In 2017, a friend of mine sent me a link to an YouTube channel about personal finances, called Me Poupe. That made me change, for the better, the way I think about money, wealth and financial independence.

Since then, my husband and I have been budgeting, spending less and making more conscious financial choices, i.e., living below our means. For investing, we’ve been using WealthBar and we are also planning to try the Canadian Couch Potato method soon.

All of this was only possible because we have been continuously learning from other people’s experience. It’s not so easy to take control of your finances, so it was really important for us to had found some good materials along the way.

Because of that, I decided to write this post and share my top 5 best books that helped us change the way we manage our money. Here we go:

5. Rich dad, Poor dad

This was one of the first finance-related books that I read. It’s not an investments book, it’s rather a way to change the way you might perceive money and wealth. For me, it was super useful because that’s when I started to notice the difference between having a lot of money and building wealth. One of the best part of the book is when the author talks about the ‘Rat Race’: the more you spend, the more you have to work to maintain your lifestyle. It’s a short book but I guarantee you might get some insights from it.

4. One Million in the Bank: How to Make $1,000,000 With Your Own Business, Even If You Have No Money Or Experience

There are a lot of financial independent people these days writing blogs, creating courses, etc. The majority of them recommends investing as much as you can from your salary, right? But only a few of them points out that one of the fastest way to build wealth is to generate passive income from developing a Business. The main learning from this book is that you don’t need to go after creating the biggest company in the world nor you need to have a fancy MBA to have a successful business. Bonus: If you are in the Tech Industry, you might even want to check out the Indie Hackers community for some inspiration.

3. Thinking, fast and slow

This is not a finances book but it’s somewhat famous in the investing world. The author discusses the psychology behind some choices that we do, including Investing, Statistics and Probability. It’s a great book and reading more about how we think and do stuff is always interesting. Another great book is Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets but I haven’t read it yet.

2.The Millionaire Next Door: The Surprising Secrets of America’s Wealthy

I won’t deny that I used to think that rich people were the ones that had a lot of money, maintained a very expensive lifestyle, including travels every month, etc. Well, if you do all of that, that just means that you have less money in your bank account and therefore you need to work a lot more to maintain that (that’s usually the case, unless you inherited a big fortune or something).

But here is where things get interesting. According to the author, self-made Millionaires give a lot of value to their money, live a frugal life and therefore don’t have to worry about their future, because they make better financial choices. So, this idea that millionaires are millionaires because they spend a lot of money is not accurate. to summarize, I really like this quote:

Wealth, in fact, is what you don’t see. It’s the cars not purchased. The diamonds not bought. The renovations postponed, the clothes forgone and the first-class upgrade declined. It’s assets in the bank that haven’t yet been converted into the stuff you see. When most people say they want to be a millionaire, what they really mean is “I want to spend a million dollars,” which is literally the opposite of being a millionaire.

From The Psychology of Money – Collaborative Fund

So this book is my second one because it demystifies some of the common believes about Wealth.

1. Early Retirement Extreme: A Philosophical and Practical Guide to Financial Independence

As the title says, it’s a very Philosophical discussion about Financial Independence. It goes beyond saving everything you can, instead it makes you think of better choices you can make today that can make a huge impact in the next years of your life. Are you sure your spending habits make you happy? Yep, be prepared to face some personal questions along the reading.

It is one of the best books that I’ve read. I would say that you have to read it first to make sure you want to follow a FIRE movement, because it takes a lot of commitment, but you can also check it out the 21-Day makeover for free first. I’m not a strict FIRE adopter, but following some of the ideas that the author presents have made a huge impact in my life.

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And that’s it! I would love to know if you have a suggestion or comments. You can also check it out my reading list here. See you next time!

How to apply your coding skills to turn yourself into a self-made millionaire

Before you start to read, I have some things to say. I am not a millionaire *yet*. I like coding and studying investments. And lately, I’ve been reading a lot about Business and how to create a product in order to generate passive income that will help me achieve financial independence faster.

I have been following some people from Indie Hackers and what I really like about this community is that you don’t need to create the next revolutionary startup (unless you want it) to be in business. There’s a lot of people who solved a problem they faced for months or years until they saw there was an opportunity to start a small business and make some money.

Eventually, your business can get big or not. And that’s okay if that’s okay with you. You don’t need to be the next Google, the next Uber in order to be successful, and you don’t even need investors. Startup life is something that you really should get to know well before jumping in because it can be (stressful).

I was reading Stephanie Hurlburt blog another day and I found this great article about software development and Business :

I know many developers who are essentially making products and giving them away for just a salary or throwing them out because they don’t truly understand their worth. Next time you work on a project, really think about what your work is worth and get creative about how to get at that.

This reminds me that, as a developer, I have a feeling that almost everybody I know don’t believe they can run a business, so they don’t even try. Of course, for us, marketing and dealing with clients isn’t something that we would usually bet our money on. Sales and software development are totally different things, and it’s hard to sell something to a client that wants something you know it’s impossible to do build as a developer.

But that’s worth trying. Do the math: let’s say your product generates a recurring monthly revenue of $ 1,000. Multiply that for 12 months (1 year) and for 60 months (5 years). That’s a nice amount of extra money, right? That money could be put into investments. When you get the taste of making more passive income I don’t think you’re gonna settle for less.

Think about being financially independent. Don’t get me wrong, I know that will not be easy. But wouldn’t that be great if you had to work only on what you love and not because you have to pay your bills? Wouldn’t that be great if you had the time (the most expensive thing in this world) to live your life the way you want it? That’s the spirit. Set your goals and don’t settle for less, my friend.

Let me know how many of you already have a business and how many of you are interested in having one. Cheers!