“A part of all you earn is yours to keep” — The Richest Man in Babylon
“The Richest Man in Babylon” was first published in 1926 by George S. Clason — and it rates among essential reads in financial planning/self-help genre books. It covers basic financial principles that are universal and unchanging, “like the law of gravity,” and disciplined application of these principles leads to plentiful money for its practitioners. The book presents practical advice and principles through ancient Babylonian parables and anecdotes, guiding its readers toward a prosperous future.
“Control thy expenditures”
“The Richest Man in Babylon” follows the journey of Arkad — The titular character, who, in his journey, discovers these universal principles and shares them with the world. Clason advocates that being successful with money is a prerequisite to fulfilling one’s desires and dreams; therefore, he gives seven simple rules of money supported by five laws of gold to achieve financial sustenance and independence.
Clason advises the readers to set aside at least 10% of their income, no matter how meager their incomes are, and to control their expenditures by living within their means and avoiding unnecessary borrowings or high-interest debts. Small but consistent savings, when invested wisely following the advice of knowledgeable advisers or in income-generating assets, compound over time to create a substantial fortune, thus building a solid foundation for future earnings.
“Opportunity is a haughty goddess who wastes no time with those who are unprepared.”
As one needs to be prepared to take advantage of the available opportunities, Clason advises readers to acquire knowledge and hone their skills to open various opportunities to succeed and earn well. Only by continuously adding value to ourselves by learning and improving can we stay ahead of the competition and command higher income and value in the marketplace.
“Better a little caution than a great regret.”
Adopting a long-term mindset and exercising patience are essential to increase wealth. Pursuing shortcuts or quick gains based on inexperienced advice can lead to financial losses, scams, and even the depletion of one’s savings. Before investing any money, we must always look for a guarantee of repayment and shy away from risky investments.
“Gold clingeth to the protection of the cautious owner.”
In helping others, no matter how close they are to us, we must never put ourselves in financial burden. As an indebted man rarely earns respect, paying off debts should be at the top of our priorities. If our debt grows substantially, we should begin living on 70% of our earnings, allocating 10% for personal savings and dedicating 20% to repay the debt until it is fully settled.
“The Richest Man in Babylon” is a classic book that offers timeless advice on accumulating wealth and achieving financial freedom. The book outlines fundamental principles that can help us achieve our financial goals, such as saving regularly, investing wisely, investing in ourselves, managing our finances prudently, and recognizing the power of time. This book has left a lasting imprint on countless other influential works, like Rich Dad Poor Dad, which is one among many such works.
“Remember this: the sun that shines today is the sun that shone when thy father was born and will still be shining when thy last grandchild shall pass into the darkness.”
The naysayers who think that, “The Richest Man in Babylon” is too old to be relevant today should appreciate the universal nature of the principles. To anyone practicing them, these principles can be liberating and put them on the road to financial independence. By learning from the wisdom of the ages and applying these principles to our lives, we can create a blueprint for personal prosperity and financial security.
My Rating:- ★ ★ ★ ★ ★
- Total pages: 155
- Genre: Genre: Non-Fiction/Finance/Self-Help
- The Richest Man in Babylon: George S. Clason