Money Blue Book

A balance transfer credit card can be a useful resource for a credit card debt elimination plan. It allows you to consolidate debt into a single account and may lower your overall interest rate, helping to reduce your monthly payments and pay off your debt more quickly.

Of course, opening a balance transfer credit card on its own won’t make your debt evaporate overnight and shouldn’t be an excuse to spend more–but if you understand what the balance transfer credit card is for and stay disciplined in your debt payments, it can be a very useful tool.

Ten Steps to Debt Reduction Using Zero Balance Transfer Credit Cards

1. Make a list of all of your debts–and add them up. This gives you a clear idea of how much you owe, how much the interest rate is on each debt, and what you are currently paying in monthly interest and minimum payments. Awareness is the first step toward being debt-free.
2. Review the terms of your current debt. If you currently pay little or no interest on at least some of your debt, you may not even need to transfer that part. However, if your existing low interest rate is for an introductory period that is ending soon, you may want to consolidate that debt with the rest.
   
3. Find a low interest credit card that can be used to transfer balances. If you don’t already have one that will work, apply for a new balance transfer card. If possible, select one with at least a 6- to 12-month introductory period, during which the card issuer charges reduced or even zero interest. Apply for a credit limit sufficient for all the debt you want to consolidate at this time.
4. Learn the fees associated with any balance transfer. There are two typical balance transfer fees: an upfront fee at the time of transfer, plus an interest rate to be charged monthly until the balance is paid off. Try to obtain a zero balance transfer credit card, if possible, which may charge only one type of fee during your introductory period–or possibly no fee during the intro period.
5. Read the fine print about your balance transfer terms. Many low interest transfer credit cards will charge you a higher-than-promoted rate if you make any late payments or otherwise violate their terms, especially during the introductory period. This can potentially cost you even more than before you transferred your debt–so be forewarned, plan ahead, and figure out a way to commit to paying on time.
6. Transfer your target debt to the low interest credit card, then review and update your list of debts. Create an overall debt repayment plan based on your budget and income, and commit to pay it all off within your chosen timeframe. Avoid adding new debt and making unbudgeted purchases–and use any unexpected income (a raise, overtime, a side gig) to pay it down even faster.
7. Pay more than the minimum required total payment. As long as you can pay more than just interest on all your debt, you can pay down your debt and eliminate it over time. But it will take more than just the minimum payment to pay off credit card debt within a reasonable timeframe. The Federal Trade Commission’s credit card calculator shows you just how much time you can save by paying down more.
8. Pay down any remaining higher interest debt first. If you were unable to consolidate all debt on your low interest credit card, pay only the minimum monthly amount on your lower interest rate debt, and then put the difference from your planned monthly debt payoff amount toward paying off your highest interest debt faster.
9. Don’t assume you can transfer debt balances indefinitely. When the interest rate on your consolidated debt goes up after the introductory period, you may consider a second balance transfer. While this strategy has worked for some, this usually means you’ll need to obtain a new zero balance transfer credit card. Be aware that too many new accounts can negatively affect your credit score, and that credit card companies may simply stop approving you for the new offers. Ideally, you should just select a decent zero balance transfer credit card with a low ongoing interest rate to begin with to avoid getting caught again in the cycle of perpetual new accounts and transfers.
10. Do something nice to reward yourself. Eliminating the burden of debt is a reward in itself–but don’t forget to find little ways to reward yourself inexpensively along the way. This will help you stay motivated and continue to enjoy life as you should. Once you pay off your debt, do something nice for yourself and your family–and pay cash! It took a lot of effort, but you’ve made it.

Debt Payoff: Keep Your Eyes on the Goal

The purpose of consolidating debt is to make it easier and faster to pay it off–instead of putting it off until it becomes overwhelming. Make paying off your credit card debt the number one priority in your financial life, after meeting your family’s basic needs and commitments. You’ll be relieved to finally live a life without overwhelming debt obligations.

Review Of The Balance Transfer Credit Cards I Use To Pay Off Debt

As a fan of balance transfers and zero percent credit cards, I’ve been feeling rather forlorn these past few months. With the recent enactment of new laws and regulations clamping down on how credit card issuers run their practices, it seems the era of 0% balance transfers and 0% APR deals has finally reached its apex and is now beginning its downward decent into the annals of credit card lore. Only a mere few years ago, one could effortlessly lighten the burden of high interest credit card debt with the assistance of balance transfer offers – lucrative deals that dangled everything from waived transfer fees to long term interest free durations that extended into perpetuity for the entire life of the loan. At its heyday, it was a common place to hear stories of those who were able to engage in balance transfer arbitrage and profit immensely from the 0% APR offers that credit card companies issued to attract new card members to the fold. Back then, the savvy and opportunistic card arbitrager could simply apply for a credit card, obtain a 0% balance transfer, pay no money up front, and immediately transfer the free funds into a remarkably high yielding (5.00 – 6.00% APY) online savings account – reaping what was essentially free interest profit.

Sadly for those of us who once depended on these types of offers for so long, those days are now sorely missed and all but gone, as such once abundant deals are edging ever closer to extinction. With the devastating credit crisis having made its presence keenly felt in all aspects of the U.S. economy, credit card issuers have pretty much pulled out their most lucrative balance transfer offers. Nowadays, balance transfer durations are getting shorter, the balance transfer fees are getting higher, and ordinary purchase interest rates at the conclusions of promotional periods are all witnessing substantial increases.

Compare These Factors When Reviewing Prospective Balance Transfer Cards

But while harder to find, balance transfer cards still exist, at least for the time being. For those who wish to take advantage of these limited time offers, it’s important to recognize the critical ways that today’s balance transfer offers have changed compared to years past. Here are the crucial balance transfer terms and conditions to always consider:

1) Length Of Time Of the Promotional Periods: Presently, zero percent balance transfer periods range from 6-12 months with only a few rare programs that offer terms beyond a year. Obviously, the longer the term the better, but even enjoying a 6 month promotion at 0% APR is less onerous of an interest penalty burden than enduring the same time period at a whopping 15-25% APR or more (which is what many credit card companies are gouging their customers with these days).

2) Balance Transfer Fees: While introductory 0% APR no balance transfer fee cards are still around, they are increasingly very difficult to find. Currently, the standard balance transfer fee for most cards is slated at 4% of the total amount transferred. While there are still a few offers out there that do offer the next best alternative – capped balance transfer fee charges at a maximum of $75.00 or so, those types of attractive offers are dwindling as well.

3) Credit Card Sign Up Bonuses: While 0% credit card promotions are dwindling, incentive rewards and sign up bonuses are still plentiful. It’s best to seek out cards that offer special sign up rewards whenever possible. There are actually quite a few offers out there that pay anywhere from $50 to $100 or more for new members. By taking advantage of these sign up rewards, one can greatly minimize the impact of the 4% balance transfer fee charges that many introductory balance transfer offers impose.

4) Annual Fees: Avoid credit card offers that levy annual membership fees if possible. There is simply no reason to pay such petty charges as there is a wide selection of no annual fee cards out there to choose from. The exception to the rule is if the card offers a special sign up bonus that pays for the annual fee altogether.

The Top Balance Transfers: 0% APR Credit Card Offers That I Use

While it’s presently no longer reasonably profitable to continue playing the credit card arbitrage game, balance transfer cards can still be a reliable method of debt reduction and a source of emergency funding for those drowning in debt or suffering from a bout of unemployment. While a host of alternatives to balance transfers have emerged, they still remain very effective and accessible solutions for individual and families looking to manage their debt.

If you’re looking for breathing space and extra time to pay down your existing credit card balances without the stifling pressures of the high interest gun pointed at your head, a balance transfer credit card that offers a 0% APR introductory rate may be right for you. But here’s a little warning. While 0% and low interest balance transfers are effective tools for reducing the burdens of existing credit card debt, if you aren’t diligent in ensuring that you follow the appropriate rules and conditions to the letter, you may unwittingly put yourself in a worse off position than before. When you obtain your balance transfer offer, you should never use your promotional credit card for additional purchases but instead focus exclusively on using the interest free grace period towards paying down existing high interest debt. Remember, you ought to engage in 0% balance transfers only if you’re serious about getting out of debt, not merely as a way to engage in delayed gratification by using the interest free funds to go on a self defeating shopping spree.

As I frequently get emails and requests from readers asking me for recommendations on what I believe are the best balance transfer offers available today for those looking to pay down debt, I’ve included a very short list below of my conclusions. The following is a list of what I would personally use for balance transfer purposes. Note that a few of the balance transfer cards below even offer zero percent rates on purchases along with the balance transfers to boot. A few even tout special sign up bonuses as well.

1) Discover More Card – No annual fee. Offers 0% APR on purchases for 6 months and 15 months on balance transfers, with a 4% balance transfer fee.  At the conclusion of the balance transfer period, the card reverts into a handy cashback rewards card of 5% and up.

2) Citi Platinum Select Mastercard – No annual fee. This very popular offer from Citibank offers 0% intro APR on balance transfers for 18 months and on purchases for 12 months. There is a balance transfer fee of 5%. As a non-rewards card, the Citi Platinum Select’s natural interest rate is also comparably lower than other reward based cards.

3) Citi Forward Card – No annual fee. This Citibank credit card offers 0% APR on purchases for 7 months and 12 months on balance transfers, with a 4% balance transfer fee. You can also earn up to 8,500 bonus points after you sign up for paperless statements and make $250 in purchases within the first 3 months of account opening.

4) Escape by Discover Card – “ This special Discover travel credit card promotion offers a 0% balance transfer and 0% purchase period for 6 months, with a 3% transfer charge. It also offers new card members the mile rewards– 25,000 Bonus Miles – 1,000 Bonus Miles each month you make a purchase for your first 25 months*.. The new bonus miles earned upon sign up can be exchanged for cash, gift cards, or other travel rewards.

5) Miles Card by Discover – No annual fee. Get a 0% APR offer on balance transfer and purchases for 6 months, with a 3% balance transfer fee. While there is no official cap on balance transfer fees with this offer, the Miles Card by Discover does offer a nice sign up bonus–12,000 Bonus Miles  - 1,000 Bonus Miles each month you make a purchase for your first year*– thus reducing your effective balance transfer fee burden.

6) Citi mtvU Platinum Select Card – No annual fee. 0% APR* on Purchases for 7 months, if you qualify, based on your application and credit history*.  The Citi mtvU card is one of the best, if not the best card for students looking to rack up lots of free money in the way of cash back rewards for purchases at the conclusion of the balance transfer period.

As the economic paddy wagon continues to hee and haw its way through the recessionary mud, once available avenues of emergency funds are steadily drying up. Credit card consumers and account holders across the nation may have noticed that they are receiving fewer credit card junk mail in their mailboxes these days. While this reduction in the volume of paper junk mail received may be counted as a blessing, it’s also a sign that the once bountiful availability of lucrative 0% APR credit card offers are slowly coming to an untimely end. Due to the deterioration of the mortgage and credit industries, major credit card issuers such as Citi Card, Chase, Bank of America, American Express, and Discover have significantly pulled back their credit card marketing efforts and drastically reduced the quantity and quality of introductory 0% balance transfers offered.

Currently, the most popular 0% balance transfer card offers that still remain in effect today include the following short list of active promotions. As always, before applying for a balance transfer card, it’s important to read the fine print carefully and be fully cognizant of the advertised 0% rate duration, the availability of any balance transfer fees, the regular interest rate after the end of the 0% period, and the availability of any underlying cash back or credit card reward offers.

• Discover More Card: 0% balance transfer for 15 months and 6 months on purchases, 4% transfer fee. Get cash back on up to 5% on select purchases and earn 1% back on everything else.
• Citi Platinum Select Master Card: 0% intro apr for 18 months on balance transfer and 12 months on purchases, 5% transfer fee.
• Miles by Discover Card: 0% balance transfer for 6 months, 3% transfer fee. Earn bonus airline mileage rewards with this travel credit card.
• Chase Slate Card With Blueprint : 0% balance transfers and 0% purchases for 12 months, with a one time transfer fee of 3%.

Disappearing Balance Transfer Credit Card Offers Due To Changing Times

In response to the market trend of vanishing balance transfer deals and low interest credit card offers, it certainly doesn’t help that we currently have an anti big business leader at the helm in President Barack Obama. With the passage and issuance of new credit card rules and more aggressive federal regulations designed to crack down on the more unethical credit card issuance practices, the new rules are now making the business practice of providing 0% APR durations extremely unprofitable for the major credit card issuers – and threatening to push the remaining 0% balance transfer offers to the brink of extinction.

During the glorious heydays of credit card arbitrage and App-O-Rama’s, it was easy for most Americans to count on the availability of 0% balance transfers for cheap personal loans and low interest debt consolidations. Only a mere few years ago, those saddled with a mountain of high interest credit card debt could simply leverage their good FICO credit scores and apply for new credit cards that offered 0% balance transfer promotions as a short term way to consolidate their oppressive debt into a zero percent account for 12 months or more while they slowly chipped away at the payment principle. If after the conclusion of the one year duration the consumer needed to extend the 0% balance transfer consolidation period, the cardholder could simply seek out another interest free credit card and transfer the unpaid balance over to the new zero percent account.

Now, those days are all but gone as credit card issuers have had to drastically cut back on their offerings to comport with economic realities and standards brought on by new, tougher governmental rules on lending practices. Back during my earlier student days, I was one of those individuals who actively used balance transfer credit cards to keep my personal budgets afloat. Now, if I were to ever encounter the same cash strapped conditions again, I would have to resort to using balance transfer consolidation terms that aren’t as favorable as they once were, or seek out alternatives to credit cards altogether. Major balance transfer issuers that once dangled lucrative free balance transfer promotions of 12-18 months, with no balance transfer fees or fees capped at $75 or $99, with some that even offered attractively cheap lifetime balance transfer terms – are now witnessing the complete pull back of these former offers. Today, while a handful of low interest 12 month 0% balance transfer promotions remain, most card issuers now require some upfront balance transfer fees, have shorted 0% credit card transfer rate durations to an average of 6 months, and have pretty much withdrawn most of the sign up incentives that used to exist just a few years ago.

Those like myself who have grown dependent on 0% balance transfers and low interest credit cards as sources of emergency funds need to start bracing ourselves and preparing for the slowdown effects of credit card consolidation loans (for those who have not already done so). With national unemployment rates almost certainly to exceed 10% and banks and lenders still fumbling with the credit crisis, it’s important to figure out contingency options in case of unexpected personal finance emergencies. Those who are currently relying on balance transfers to help pay down high interest credit card debt also need to know what other balance transfer alternatives are out there. You never know when you or your family may encounter a sudden reduction in income stemming from an out of the blue layoff or unexpected illness on the part of the head bread winner. We are currently in difficult times – it’s best to stay prepared.

As always, maintaining a good credit score is essential to keeping that dwindling balance transfer pipeline open. Securing a high FICO credit score is also highly relevant to the accessibility of the litany of balance transfer alternatives out there as well. If you make it a habit of making late payments or neglecting your existing debt account obligations, your credit report history will suffer – closing the door on the secondary loan consolidation options that may have been available to you.

List Of Credit Card Loan Consolidation and Balance Transfer Alternatives

If your attempt to take advantage of available 0% balance transfer offers or negotiate lower interest rate terms with your current credit card company have failed, you may wish to consider these plausible loan consolidation alternatives.

1) Introductory 0% Credit Card Balance Transfers: Obviously, before finding alternative loan solutions, the first step is to make sure and confirm that you’ve truly exhausted the list of available balance transfer offers to you. If used diligently with timely and proper adherence to minimum payment rules, zero percent credit cards are the easiest available method to consolidate high interest debt. Some of the issuers even provide balance transfer consolidation checks that can be used to directly pay off non credit card debt as well.

2) Lifetime Balance Transfer Credit Cards: In the old glory days of balance transfers, there were such things as lifetime 0% balance transfers. Obviously those days have past. Nowadays, the zero percent lifetime balance transfers have been replaced with low interest life-of-the-loan type deals. For card customers trying to pay off high interest credit card debt, these new lifetime low interest balance transfers may be substantially cheaper than the other personal loan alternatives out there. Some issuers like Discover Card have been recently offering lifetime balance transfer rates as low as 0.99% APR to 2.99% APR. Of course, while lifetime balance transfer credit card rates may be cheaper than other personal loan alternatives, they do require the card account holder to exercise super diligent repayment habits to continuously benefit from the perpetually low rates. Failure to do so will result in a figurative whack over the head by the issuer in the form of substantially higher rates and penalty fees.

3) Lending Club – And Other Popular Peer To Peer Online Personal Loans: For those with less than stellar FICO credit scores or credit reporting histories, online peer to peer lending services have emerged as viable balance transfer and personal loan alternatives to traditional banks. The leaders in this new and emerging industry are presently Lending Club.com (see my Lending Club review for more of my personal insight into the company’s operations) and Prosper.com. Peer to peer services like Lending Club (or P2P lending as it’s commonly known), offer a way for ordinary Americans to lend to their fellow man and woman by way of an online matching system – complete with personal profiles and blog messages written by prospective borrowers. By making use of credit scores, credit reports, debt usage ratios, and income & asset verification details, services like Lending Club allow prospective ordinary lenders like you and I to determine the risk level for the loans they extend and the appropriate interest rate compensation for that risk. Presently, Lending Club loan rates for prospective borrowers start as low as 7.88% for those with at least a qualifying FICO score of 660.

4) Secured Credit Card Debt Consolidation Via Home Equity Lines of Credit: In many state jurisdictions, those who own their own homes can open up a home equity line of credit (a HELOC loan) via a bank, and use the built up equity to pay off and consolidate their existing credit card debt. In almost all cases, a HELOC loan offers a much lower interest rate than most personal loans via banks or ordinary non-promotional credit card offers. However, this option is a very controversial alternative to credit card balance transfers as it basically entails the legal shifting of unsecured personal credit card debt – and turning it into a debt that is now secured by one’s home. This distinction is important, because ordinarily in the event of a failure to pay back the credit card loan (a credit card default), the card issuer can not immediately go after your home to satisfy the unpaid debt. But once the debt consolidation is made via a HELOC loan, this turns the unsecured credit card debt into one that is secured by a condominium or single family home, subjecting the home to possible seizure for non payment. Utilizing a home equity line of credit loan for short term credit card relief is rarely a good idea, but it’s an option and balance transfer alternative nonetheless.

5) Personal Loans Via Banks and Local Credit Unions: Those with good to excellent FICO credit scores may be able to apply and get approved for a personal loan from their local bank or community credit union. However, bear in mind that while these type of loans for credit card consolidation purposes are generally widely available to most borrowers, they frequently demand interest rates that are higher than available home equity line of credit solutions. Furthermore, oftentimes before banks or credit unions will extended such personal loans for existing credit card debt consolidation reasons, they frequently require the borrower to close out his or her existing credit card accounts to ensure that further debt is not accrued.

6) Debt Consolidation Counseling: If your credit score or credit report history is simply too damaged to utilize the available low interest credit card debt consolidation alternatives above, you may be able to seek out affordable credit counseling services from accredited non profit organizations to help you consolidate your existing debt in a manageable way via fee waivers and lifestyle changes. Many colleges, universities, military bases, veteran organizations, community credit unions, and even local government consumer protection authorities operate such non profit credit counseling programs. Of course, keep in mind – just because an organization touts itself as “non-profit”, there’s no clear cut guarantee that the services are free, affordable, or even legitimate.  Beware of hidden fees or suspiciously high up front charges by the so-called non profit credit and debt counseling services. Those looking for a list of credit counseling agencies provided by the U.S. Department of Justice for various state jurisdictions may want to check out this approved agency list. It’s a good starting point for those who need debt repayment help.

7) Payday Loans (Or Car Title Loans): This balance transfer alternative is the most controversial of all. I only offer it up here because it is a potential option for those seeking an alternative to credit cards, albeit an extremely costly one. Payday loans or cash advance loans provide people with a quick infusion of cash when all other immediate options have failed. Car title loans are simply payday loans that are secured by your car, subjecting your vehicle to possible seizure if you fail to pay back the loan. For those with poor or damaged credit scores, payday loans are frequently the only loan options available. With nothing more than a verified pay stub and a job, borrowers can secure a quick personal loan to pay off emergency bills such as home utility charges, car repair fees, or even credit card bills. Unfortunately, the easy accessibility of payday loans and the lack of any substantial credit history documentation needed to get approved also explains why they are so incredibly distasteful. Payday cash advance loans frequently charge the highest and most outrageous fees of any type of loan out there. I highly advise readers to stay away from high interest payday loans if possible. If you absolutely must play with fire, only borrow as much as you can afford and pay the loan back as soon as possible without delay.

List Of The Top Books About Money For Your Personal Finance Library

Burn those get rich quick books and ditch the late night infomercial gimmicks. Whatever you do -  don’t waste your money on useless junk. True personal finance knowledge is not something that can be acquired overnight, but is a lifelong marathon pursuit that requires the constant absorption of old (proven and established) and new (innovative and efficient) approaches to money management.

Embarking on what some refer to as a personal finance makeover requires an improved understanding of the basic mathematics and psychology behind income generation, responsible savings, and long term investing. But as previously indicated, there are no easy quick fixes to some of life’s complex financial woes. Such pursuits of a better way of life require a self motivated determination to become more financially educated and experienced through the testimonies and learned mistakes of others.

I have heard some commentators cite the declining popularity of newspapers as the reason why book reading is no longer a necessary and relevant activity in today’s technological age. However, I think this line of thought is seriously misguided. Reading books is important because the way that information is consumed through a book is different from the way it is received online. Unlike book reading where consumption is complete and systematical, online consumption is keyword search driven, prone to interruptions, and deprived of full and proper attention. The idea that you can fully understand the nuances of the world, let alone personal finance and proper money management, in small bite size chunks without extended periods of thought is foolish.

There Are Lots Of Great Books About Money But A Few Really Stand Out

When it comes to books, I select books the same way I pick my movies – by reading consumer reviews and getting a consensus opinion from the critics and experts. Admittedly, it’s not the most original or ingenious of methods, but thus far it’s worked well without fail as I have yet to purchase or borrow a personal finance book from the public library that I have not enjoyed or found somewhat interesting.

Coming up with a list of the best personal finance books about money was not easy. The topics they cover vary greatly and their writing styles appeal to different types of readers. Some are more suited for hardcore technical investors looking for statistical theory, while others are more geared towards single moms who just want to know how to pay off their ballooning credit card bills. Some of the authors and titles listed below may sound familiar but that’s because they’ve stood the test of time – and have become bestselling classics and literary blockbusters among avid personal finance consumers.

Remember, the list of books I have read and reviewed below are only the ones that have worked for me, as everyone’s specific needs and life stories are quite different. I own quite a few of them and each holds a special place in my personal finance library. Together, they offer everything a student of personal financial planning could want about saving money, investing in the stock market, debt management, and self motivation. You may notice that I left a few titles out. That’s because I found them either too tediously technical for the average reader or I found them too boring and coma-inducing to personally stomach. Certainly not all personal finance bestsellers are great reads, but I think the following list represent the top titles. All of the book titles listed below provide related links to Amazon.com where you can find more detailed book reviews from those who rate books for a living and by ordinary readers like yourselves.

Do you agree or disagree with my selections? How about sharing a few of your personal five star favorites not mentioned here, or perhaps even offering up some of the bad ones you’ve come across? I’m curious to know more!

List Of Highly Rated Bestselling Money Books That Will Change Your Personal Financial Life

1) The Total Money Makeover by Dave Ramsey – This book is absolutely essential for those who want to get started on the path to financial freedom. If you are up to your neck in credit card debt and struggling with pay check to paycheck living, this easy to read book by famed radio and TV talk show host Dave Ramsey was written for you. In this book, he talks about the importance of taking baby steps through his system of working hard, paying what you owe, and staying out of debt. Ramsey is an anti-credit preacher and is constantly imploring his readers to use cash for everything (while I don’t quite agree with his sentiments about credit card usage, I can certainly appreciate it on a practical level). If you are struggling with debt, you will want to take a look at the Dave Ramsey snowball debt payoff method. The snowball debt repayment method is not the most mathematically logical way to pay off debt, but it harnesses the power of human behavior and personal motivation to accomplish its debt free ends.

The book is sprinkled with many of Dave Ramsey’s own personal and devout Christian morals and practices, but even those who are not overtly religious can still appreciate his advice and recommendations such as adopting a “gazelle intensity” behavioral system to stay ahead of the financial game. The Total Money Makeover is very inspirational and not technical – definitely an easy read.

2) Your Money Or Your Life by Vicki Robin & Joe Dominguez – In this updated and revised version of a personal finance classic, the authors continue as champions of the simplicity movement. In Your Money Or Your Life, readers are implored to sit down and really re-evaluate the priorities in their lives, especially when it comes to their jobs and relationships. The book is a bit new age-ish but not controversial. It examines numerous financial truths about the interplay between life and money, encouraging readers to break out of the doomed cycle of forever trading time for money by pursuing passive income sources. If you are unhappy with your financial life and want to learn how you can break out of your current rut and live a more time efficient and value orientated life, this money book is a must read. It will change your perspective on money and life – and help you understand that it’s not just about working and buying more stuff (not exactly a shocker, but the authors really hammer the concept home).

3) The Millionaire Next Door by Thomas Stanley & William Danko – If you are a shopaholic or one who is obsessed with acquiring material possessions, the core message of this book will fly at you like a punch in the face (in a good way of course). The book is quite fascinating as it profiles and surveys the characteristics of very ordinary millionaires (you won’t find hip hop stars or athletes in this book). In their research of the lives and habits of everyday millionaires, the authors of Millionaire Next Door discovered that true millionaires don’t act, eat or even dress like millionaires, as most of them blend quite well into ordinary society due to the surprisingly frugal and cost effective lives that they live. Much of their wealth was developed by simple practices of living below their means and by making smart decisions with their money.

Other than the advice that it’s important to find the right high income producing job, you won’t find any information here on how to make money or increase your cash flow. The book is extremely pro-frugality and cites saving money and delayed gratification as the pinnacle keys to accumulating wealth. The book focuses a bit too strongly on the importance of frugality in my opinion, but the testimonies and stories on the need to vigilantly resist materialistic peer pressure and fight the urge to earn and spend are eye openers for anyone who’s ever wanted to become wealthy, financially free, and possibly even become a millionaire one day.

4) The Money Book For The Young, Fabulous, and Broke by Suze Orman – I highly recommend Suze Orman financial books for beginners. For those who don’t already do so, I also recommend watching the Suze Orman Show on CNBC every week (her show is actually more entertaining than Dave Ramsey’s show in my opinion). Some people criticize her for the way she berates her readers and viewers on the bad financial decisions they make, but I think I think it’s frequently well deserved. None of Suze Orman’s advice is ever ground breaking or particularly inspirational, but she does a great job of making difficult to understand subjects palatable for beginners and newbies to personal finance.

This particular book focuses almost exclusively on the financial needs and situations of young adults – addressing the needs of students and young adults in their 20’s and 30’s, struggling with credit card debt, credit reports, and student loans. However, with its emphasis on introductory financial topics, the book is also quite suitable for even older readers looking to dip their feet into personal finance. Click on the title link above for more Suze Orman books on a variety of introductory financial subjects, pre-chewed and presented for your reading pleasure.

5) The Bogleheads’ Guide to Investing by Larimore, Lindauer, & LeBoeuf - The title of the book – “Bogleheads” – refers to folks who admire John Bogle, founder of the world renown Vanguard mutual fund investment company. If you want to educate yourself on the most important fundamentals of stock investing, this book will deliver that to you. While not particularly earth shattering for personal finance veterans, the book’s lessons are must reads for those new to investing and those who are currently too scared to get started. The book’s main themes focuses on the investment advice and philosophies of legendary John Bogle and addresses the long term investment benefits of diversification, asset allocation, low cost and low fees, and index funds. I know the book’s subject matter sounds rather techy and dry, but the financial advice it offers up is excellent and the writing style is remarkably entertaining and easy to read – making it one of the most definitive but yet accessible personal finance books on investing out there.

6) The Automatic Millionaire by David Bach – As the title makes clear, the author is a big proponent of the need to automate one’s financial life. After reading this book, one of things I came away with is that there are really no secrets to becoming wealthy and no special get rich schemes that can get me there quicker. All that’s really required is a bit of money saving common sense, the ability to live within your means, and the understanding that you must “pay yourself first”. One of the most crucial and emphasized principles of Automatic Millionaire is the need to avoid the so-called “Latte Factor”. To have the ability to save up enough to make contributions towards a retirement plan or savings account, one must make the affirmative decision to stop racking up debt and reduce spending on day to day expenses such as on frivolous and wasteful items like coffees, lattes, and cigarettes. This book is highly recommended and a must read for those looking to start saving for the future and those interested in starting up a retirement account by opening a Roth or IRA. The advice David Bach offers is quite excellent and recommended for both beginners and seasoned personal finance readers looking for a refresher course.

7) Debt is Slavery by Michael Mihalik – The message of this poignantly titled book is exceedingly clear – money is a powerful and liberating tool, but it can also shackle you and bind you into a life of miserable servitude. The philosophies that author Michael Mihalik writes in this book are succinct and direct but all are designed to force you, the reader, into a call for action to gain control of your finances and get rid of the shackles of bad debt. In fact, one of the most interesting and somewhat controversial concepts in the book is the author’s distinction between good debt (loans that will produce value – college student loans or loans to start a business) and bad debt (loans such as credit card debt accrued to fund an unsustainable and unaffordable lifestyle).

If you want a personal finance book that will help you understand and respond to the terrible problem of consumer debt, turn to this easy to read book. Perhaps the next time you pull out that trusty credit card to make a purchase, you’ll be reminded of the mantra – “debt is slavery” (* insert loud thunder crack *).

8) The Joy of Simple Living by Jeff Davidson – This book is a perfect resource for someone like my mother. As I have griped in prior blog posts, my mom is a chronic lifelong hoarder and a person who seems to find more and improved ways to make her life more complex and difficult. For someone like that in your life (maybe that person is you), this nice yellow book contains over a thousand very actionable methods, broken down into specific topics, to simplify all aspects of life and home. Rather than merely share philosophies and theories of frugality and simplicity, The Joy of Simple Living offers specific tips and techniques on how we can all eliminate clutter, streamline our work habits, save money, organize our possessions, and ease our mind to eliminate stress. It’s a handy book.

9) The Only Investment Guide You’ll Ever Need by Andrew Tobias – When it comes to sound investment advice, some things never change. Andrew Tobias helps you navigate the convoluted world of treasury bills, municipal bonds, mutual funds, and Roth IRA accounts without making the subjects too dry or difficult to understand. The crux of his preachings encourages readers to save as much as possible, and put those savings into safe, no load, and diversified mutual funds for the long term. Don’t go around betting and speculating on individual stocks because all that will lead to is you losing your money.

I didn’t expect it to be, but the book was actually a pretty entertaining read, although sometimes Tobias’ witty writing style and jocular side commentaries had a tendency to cloud up the personal finance message intended. But overall, the book is an excellent introduction to the nuances of personal finance and does a great job of keeping the reader attentive and continuously interested.

10) Real Money By Jim Cramer – Straight from the crazy CNBC financial guru/lunatic who got famously hammered on the air by Jon Stewart – comes Real Money, by the emotional booya man himself – Jim Cramer. I know some say that Jim Cramer has lost all credibility in the eyes of serious investors due to his propensity and history of offering dubious advice, but the fact of the matter is that while he is definitely starting to attract a growing cadre of haters, he still attracts a very loyal investor following and knows a lot about the business. Honestly, individual stock picking isn’t for everyone, but if you’ve ever wanted to know more about the science and psychology behind this somewhat risky business, you might as well learn it from a very entertaining author on the subject.

The reality is that there is no one out there who has a perfect stock picking record and frankly, such an activity is really an educated crap shoot. But Jim Cramer’s Real Money and his other books are still fairly decent guide books chocked full of very good investing advice – tidbits such as, you shouldn’t risk your life savings in the stock market and most definitely not in any single stock. It’s one of the few books out there where you may just wind up loving and hating it at the same time. Try it for a spin.

11) The Richest Man in Babylon by George Clason – When I first started reading The Richest Man in Babylon, like many people, I was initially taken back by the compactness of the book and the weird story. But after having read it, I must say, I really enjoyed it. This book should be read by everyone from high school students to corporate executives alike – it’s that enlightening and all encompassing. Essentially the book contains a series of parables set in ancient Babylon. It teaches all the principles of basic personal finance and money management through the use of these classic life lessons. By reading the very entertaining stories, you gradually begin to see parallels in your life and gain a better understanding of how good and bad habits affect how one spends, lends, budgets, and invests money. This book was originally written in the 1920’s, but the fictional stories and life lessons imparted are still very relevant today.

12) The Wealthy Barber by David Chilton - If you enjoyed the preceding title, The Richest Man in Babylon, then you will definitely enjoy The Wealthy Barber as well. This book is written as a novel built around a central story plot set inside of a barber shop, with personal financial self help lessons sprinkled throughout. Some of the stories have characters engaging in discussions regarding important financial concepts such as proper saving habits, investing strategy, and tips on buying a house. The book offers the usual rehashed financial advice that other books offer, but with clear practical examples and in narrative form. If you are intimidated by traditional financial books about money, then this book’s conversational story book form will definitely appeal to you. It’s a great book about money and life for beginners to the subject.

13) The Intelligent Investor by Benjamin Graham & Jason Zweig – Praised by billionaire Warren Buffet as the best book on investing ever written, The Intelligent Investor by Benjamin Graham is that good. This current revised edition contains additional modern day commentary by author Jason Zweig who applies the classic principles to modern day relevance. If you are a speculative day trader looking for short term trading tips, look elsewhere. This book focuses exclusively on the fundamentals of long term value investing and the importance of buying undervalued stocks of great companies for the long term. This book offers a tremendous amount of investment wisdom but is rather dense and comprehensive. Some say it’s a bit technical, but I didn’t find that to be the case (but I’m pretty comfortable with occasional numbers).

14) What Color is Your Parachute? by Richard Bolles – Year after year, the author releases a new updated revised edition of this bible of sorts for job hunters and career change seekers, one that is always chocked full of new advice and resources. The current edition was clearly written with job loss sufferers of the current economic recession in mind as it contains plenty of advice on how to cope and save money in difficult times. This book is an excellent read for anybody who is actively searching for a job or contemplating a career change. The book services as a career guidance counselor that helps you discover your true aptitude, based on your skills, talents, and interest – to help you find a profession that maximizes your potential. The author’s writing style is very thorough and complete, and some people might be slightly turned off by the way he painstakingly hand holds the reader through every explanation in great obvious detail. But regardless, the Parachute series of self help books is a great resource and offers great advice on how to approach prospective employers, tackle interviews, and discover your true calling.

15) A Random Walk Down Wall Street by Burton Malkiel – Don’t be fooled. This best selling book is a must read for those who want to understand more about why it’s nearly impossible to beat the market and why following the advice of so-called stock picking gurus can be detrimental to your financial health. This book discusses the famed random walk theory and dives into the intricacies of behavioral finance, which studies the social psychology of investment decisions – with reviews and discussions of past historical stock market bubbles and investment crazes. The message of the book is clear – the market, while not perfectly efficient, is efficient enough to make it very difficult and extremely cost prohibitive to beat. At the end of the day, a savvy investor is better off holding an extremely broad basket of  all available market index funds for the long term than trying to seek out the undervalued stocks and hidden gems. This book will make you think twice the next time you blindly adhere to the financial tips that you glean from popular financial publications and financial quacks on TV. In most cases, picking individual stocks is really just a flip of the coin and a prayer. According to the author, these sources have absolutely zero predictive value in the success of individual stocks.

The book is somewhat more technical than some people might like, but I think the average reader can handle the basic charts, graphs, and ratios introduced in the text. The book is definitely not a short or quick read, but it will definitely make you think. I definitely recommend it.

16) The Complete Tightwad Gazette by Amy Dacyczyn - This book by Amy Dacyczyn, a self proclaimed “frugal zealot”, is the ultimate bible of frugality if there ever was one. Completely actionable, this detailed guidebook offers thousands of money saving ideas for everything imaginable, from the simple and common-sensical to the absolute extreme and borderline cheap. Unlike some of the other personal finance books that focus on intangible concepts and motivational philosophies, The Complete Tightwad Gazette is a step by step guide on how to save money in everything that you do in life. If you are already a thrifty guy or gal, this book will frankly blow you away in reverence. Her tips and advice on how to save money on food and household groceries are particularly useful in this current economy.

17) Rich Dad Poor Dad by Robert Kiyosaki – Almost everyone and their uncle who has ever been interested in personal finance or money has either read or heard about Rich Dad Poor Dad by motivational guru Robert Kiyosaki. In all of its controversial glory, it’s become quite a lightening rod for fans and critics alike. The book uses the story (the truth of this testimony is still up for debate) of two fathers, the author’s own dad, and his best friend’s father, each who dealt with money differently – to highlight the need for a new approach to achieve financial freedom and success in today’s climate.

Personally, after having read it a few times over the years, I continue to have mixed feelings about the book. It’s an admittedly motivational and rather fascinating read, but there are very few truly practical or actionable lessons in the book to take away. There is a call to action in the book, an urge to seek out higher income producing assets, but the author is rather light on specifics and makes such efforts sound too simplistic. One thing that readers must keep in mind is that the book was written during the whole real estate bubble and housing hype era. Much of the cash flow and passive income messages in the book center around Kiyosaki’s own successes in real estate purchases and sales during the booming era. Frankly, I have reservations whether those same sentiments are still entirely relevant in today’s depressed housing market. But despite its flaws, the book remains inspirational and a rather reluctant must read. Go read it and you’ll know what I mean.

18) How To Win Friends and Influence People by Dale Carnegie – The book was first published during the World War 2 era, but even today, it is still a dominant bestselling classic. Some things in life, particularly those that involve the interplay of human emotions and social interaction, remain timeless and forever relevant. Same species, different decade – know what I mean?

So why is this title included on a list of the best personal finance books you might ask? After all, this particular title is not directly related to the issue of money, fiscal responsibility, or investing. Well, I believe personal finance and the pursuit of financial freedom goes far behind just dollar signs and percentages. It also encompasses issues of psychology, life’s motivation, and emotional drive towards the pursuit of this ever elusive happiness. To acquire this happiness, the human and relationship elements are ever present. After all, financial success, as the author notes quite astutely, is mostly due to the “the ability to express ideas, to assume leadership, and to arouse enthusiasm among people.”

The book is filled with incredibly practical anecdotes that illustrate the best way to respond and maximize the relationship building opportunity in almost every situation. It doesn’t matter if you are a corporate tycoon, a church leader, or a college student on the rise, this book will guide you in your inevitable relationships and social objectives. The book is not exactly a thrilling page turner with exciting cliff hangers at every twist, but it’s an essential read for life long success.