5 Books to Help you Achieve Early Retirement

For most people, it’s scary to think about retirement. And the following retirement statistics should scare the average person. However, you are not the average person. If you are engaged enough in your financial future to be reading this personal finance blog, then I hope you are above average when it comes to taking control of your financial life and planning for retirement.

And if you need some tips on getting started and how I took control of my financial life and paid off $17K in debt, read my story here.

*Affiliate Disclosure: This page contains links to products and companies that I endorse. I may receive a small fee, but the reader is never charged anything.

How much do you need to retire comfortably?
It depends. According to many financial experts, you should plan on needing about 80% of your pre-retirement salary once you retire, including income from Social Security, pensions, and any other savings.

And, you may need this income for longer than you think:

The average American retires at age 63.
The average retirement lasts 18 years, but many last much longer. Plus, who knows what the retirement life expectancy will be by the time you get there? I recommend that you err on the side of caution and plan on a 30-year retirement.
You’ll need $1,060,751 in savings if you expect to draw $5,000 per month for 30 years, assuming 6% annual investment returns and 2% inflation.

Relevant Articles:

45 Ways to Increase your Income

9 Best Ways to Save $7K This Year

11 Legitimate Paid Survey Sites for 2018

Americans know they won’t have enough money, but still won’t save
The vast majority of those in the prime of their careers are aware they have a problem with their retirement savings.

The average 50 year old has $42,797 saved. If you look at the retirement “number” from the previous section, it’s easy to see that this isn’t even close.
The average net worth (assets minus debts) of a 55-64 year old is $45,447.
45% of Americans have saved nothing for retirement, including 40% of Baby Boomers.
38% don’t actively save for retirement at all.
20% of Americans tap into their 401(k) assets early,.
80% of Americans between the ages of 30 and 54 believe they will not have enough saved for retirement.

Social Security should be a supplement, not your sole income source
Social Security isn’t intended to be a sole retirement plan, but a supplement to other sources of retirement savings. Still, many Americans end up dependent on it.

36% of American adults over 65 are completely dependent on Social Security.
63% are dependent (but not necessarily completely reliant) on Social Security, relatives, friends, or charity at age 65.
Social Security is running out of money, and will only be able to cover 77% of promised benefits beginning in 2034.

The best place to start in order to live a comfortable retirement is with these books on personal finance.

The reason you should read these classic personal finance books is because they work and will help you to improve your financial future. The future is made up of the decisions we make today. And these books will help you make better decisions.

The Total Money Makeover by Dave Ramsey

The book has sold 5 Million Copies.

When you get serious about getting out of debt, this is a great book to read.

That is because It’s the simplest, most straightforward game plan for completely making over your money habits. And it’s based on results.

The Total Money Makeover: will enable you to:

Design a plan for paying off debt—
Recognize the 10 most dangerous money myths
Secure a big, fat nest egg for emergencies and retirement

The book provides a game plan that’s worked for Millions of people to become financially free.

Also, it’s really inspiring and motivational. I recommend it all the time.

Rich Dad, Poor Dad by Robert Kiyosaki

In Rich Dad Poor Dad, the #1 Personal Finance book of all time, Robert Kiyosaki shares the story of his two dads:

His real father, whom he calls his ‘poor dad,’
The father of his best friend, the man who became his mentor and his ‘rich dad.’
One man was well educated and an employee all his life,
The other’s education was “street smarts” over traditional classroom education and he took the path of entrepreneurship… a road that led him to become one of the wealthiest men in Hawaii.
Robert’s poor dad struggled financially all his life, and these two dads—these very different points of view of money, investing, and employment—shaped Robert’s thinking about money.”

Published in 1997, Robert Kiyosaki reflects on a mindset that many wealthy people adopt:

Financial success isn’t just about saving money, it is about putting money to work to actively grow.

While both had successful careers, (the poor dad) “left bills to be paid,” while (the rich dad) “died with tens of millions of dollars for his family, charities and his church,” Kiyosaki writes.

Ryan Broyles, formerly a wide receiver for the NFL Detroit Lions, wrote that the book changed his outlook as well.

The Poor Dad’s philosophy basically reinforced the way I already thought about money: Make money to live, and save some along the way,” Broyles writes.

“But the Rich Dad’s lessons — making your money work for you by investing it and acquiring income-generating assets — made me realize that I needed to make changes in how I thought about money if I ever wanted to be that Rich Dad and not have to work for somebody else.

The Millionaire Next Door:

The Surprising Secrets of America’s Wealthy by Thomas J. Staley

The investment classic that explores the seven traits necessary to become a Millionaire. This is an in depth exploration of the ordinary people who have achieved an extraordinary level of wealth and how they did it.

Truly inspirational for those on a debt free journey. Read more about my debt free journey here.

The implication of The Millionaire Next Door.... is that nearly anybody with a steady job can amass a tidy fortune. (Forbes)

Why its a great personal finance book: Imagine being able to sit down with 50 millionaires who made their wealth from a normal job.

And ask them how they did it.
What were their habits?
What was their mindset?
That’s what this book is.
How did you do it?

If you want to be wealthy, this book is the answer to most of your questions.

More about The Millionaire Next Door

The Intelligent Investor by Benjamin Graham

I included The Intelligent Investor because investing is an important part of personal finance. Even if you intend to focus on passive investing, this investment classic is worth a read. It is the essence of the value philosophy both in business and in life. And if you intend to be an active investor in the stock market, this classic is simply a must read.

If you can gain an extra 1% of return saving for retirement, it will be a huge benefit to your ability to retire early. And this is the book that can certainly do it.

Legacy: Ben Graham is an investment legend. His disciplined approach to investing has impacted generations of investors.

His book, The Intelligent Investor and Security Analysis have become a blueprint for investment success for generations of high profile Money Managers including Warren Buffett, Seth Klarman, Mario Gabelli, and Leon Cooperman.

“By far the best book on investing ever written.” — Warren E. Buffett

If you want to become an above average investor, this book is a great place to start. It is well worth the time and money. “The Intelligent Investor.
This is the book I re-read during the 2008 Financial Crisis. And it helped me tremendously.
You may want to read my post, Lessons from the 2008 Financial Crisis and How to Profit from the Next Crisis.
“The best known investing book and most likely to make you money is The Intelligent Investor.” — Andrew Tobias
Much More on Benjamin Graham, his books, and legacy.

Warren Buffett and Benjamin Graham:

After reading “The Intelligent Investor” at age 19, Warren Buffett enrolled in Columbia Business School in order to study under Graham, and they subsequently developed a lifelong friendship.

One of the best in-depth profiles of Warren Buffett was done by Roger Lowenstein, a Wall Street Journal reporter. Buffett: Making of an American Capitalist.Here

The Richest Man in Babylon by George Clason

“The most inspiring guide to wealth ever written.”

At some point in all of our lives we realize that we’re making money, but our money never lasts. We have no control of our money. This book is about the conversation between fathers and sons (or daughters) about money.

How to succeed financially. The principles are timeless. Our money problems are the same. The answers are straight forward and timeless. More information about the Richest Man in Babylon here.

Conclusion:

The retirement statistics are scary. But you have the ability to take control of your financial future. These Personal finance books can enable you to accumulate wealth and live comfortably in retirement.

Each book offers a practical guide to take control of your personal finances.

And There is a reason why many of these are the Best Selling personal finance books of all time … they work.

The earlier you begin to take action, the better the quality of your retirement will be.

So, get started today.

5 Books to Help you Achieve Early Retirement