Finance Book Recommendations for Managing Money in Business and Life

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Confession – In college, my mom used to try to get me to listen to finance podcasts, talk about passive income, etc. I thought it was boring (sorry Mom). But once I started running a business and adulting post-college, I realized how important it is to have a handle on your finances. That’s why I’m so excited to share about two awesome finance books: Profit First and Get Good with Money! Tune in to hear what I love about these books and how they can help you with your financial journey. If you have questions about knowing how much/when to pay yourself as a business owner or creating a realistic budget and paying off debt, these books can help!

(Disclaimer: I’m not a financial expert in any way. This is just me sharing books that I’ve found helpful. Please take what I share with a grain of salt. Consult a financial expert If you have questions about your specific situation.)

Book #1: Profit First by Mike Michalowicz

What It’s About

In Profit First, Mike teaches business owners his system for managing money that clearly breaks down how your money is allocated. He also emphasizes intentionally saving profits. In this system, money is divided into five categories (ex: Income, Operating Expenses, Owner’s Compensation, Profit, Taxes). There are recommended percentages for how much money to budget for each category based on your business’ annual revenue.

What I Found Helpful

One of the most encouraging things about Profit First is that the system is easy to follow! There’s plenty of examples in the book to help you understand how it works.

Also, if you’re starting from a place where you’re not making profits at all – or not able to meet the target percentages recommended for your business – the author explains how you can work your way to your goals.

Key Takeaways / Results I Got From Reading Profit First

• Using the Profit First system for my business has made money management feel easy! I created a spreadsheet with my target percentages for each “bucket” or category. Every two weeks all I have to do is plug in my revenue number and I can see how much money should be allocated to what. It usually takes me 15 minutes or less to do this!
• I have a clearer system for knowing how much and when to pay myself
• Staying on budget with my expenses is easier because I know how much I usually bring in on average, and that I should only be spending a percentage of that
• I’m more intentional about setting aside business savings

Book #2: Get Good with Money by Tiffany Aliche (aka the Budgetnista)

What It’s About

In the book, Tiffany walks you through 10 steps to becoming financially whole. She teaches key skills like creating a budget you can stick to, paying off debt, saving for retirement, investing, and more!

What I’ve Enjoyed and Found Helpful About This Book So Far

It’s easy to follow and entertaining to read! Tiffany has taken what some might consider a “boring” subject and made it fun.

Also, there’s a strong emphasis on embracing the mindset that building a strong foundation for your finances attainable – no matter where you’re starting.

Tiffany believes that the goal should be to achieve financial wholeness. Her book describes this as when the “ten fundamental areas of your financial life are in working order and you have a realistic picture of where you are on the path to reaching your wildest dreams. You can achieve this state regardless of your current income, savings, debt, or credit score!” (Get Good with Money, page 11, hardcover version)

No Results to Share Yet – I’m Still Learning and Implementing!

The steps in this book touch on several aspects of your finances, so they take more time to implement than the Profit First System. But from what I’ve read so far, I love how Tiffany really helps you build a strong foundation.

As someone who was fresh out of college and “didn’t know where to even start,” I love how she breaks down core money skills that will help in life.

Final Thoughts

With Profit First, I bought the ebook and mainly needed the chapters that shows you how to set up the system.

I bought the hardcover version of Get Good with Money so that I could highlight and mark in it.

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