The last two laws talk about how your money might be lost. The first three of these laws focus on building wealth and are very similar to the earlier rules mentioned above. Set specific and measurable goals to help you keep moving.Īnother key aspect of these parables is the aforementioned five laws of gold. You should always be taking jobs or going to classes, always improving yourself rather than resting on your laurels. You should always put yourself in positions in which you can make more money either by making yourself more employable or learning more marketable skills. Don’t spend all of the money you earn today save plenty of it and make sure that you will have enough money to live comfortably in your twilight years.
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The book’s stories delve into the idea of planning for your retirement and investing in insurance. This is essentially a rehash of the old “owning your own home versus renting” debate, with Clason coming down largely on the side of owning. You should eventually be making payments that will eventually become equity instead of paying a landlord for your entire life.
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One of the best investments you can make is by investing within your own home. Take a big picture view and make your risks carefully, without spending too much cash at once. This means making smart investment choices and refusing to invest too much of your money in the event of a poor stock market day. The book focuses on protecting your principal capital from any kind of loss. You should start by making small but smart investments and take advantage of things like compound interest to their maximum effect. Money that is just sitting in the bank and not making you extra cash is essentially being wasted. Chances are you don’t really need whatever new thing you want to buy.Īnother key lesson from this book revolves around using your existing currency to make you more money.
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Avoid letting your mind tempt you into spending more money just because you can. In the modern context, this means avoiding lifestyle inflation when you get a raise and continuing to live within your means no matter how much money you make. The second primary lesson revolves around controlling how much you spend. This will start you well on your way to saving a significant amount of money. The recommendation means you should save about 10% of all the income you earn, even if you are paying off debt. In essence, this means that you should pay yourself first. The first of these is arguably the book’s central point – “start thy purse to fattening”. A 3 Minute Summary of the 15 Core LessonsĪccording to the book, Arkad, the richest man in Babylon, shares seven major points that both individuals and general society can use to improve their financial growth and success. It provides financial advice through the lens of parables that are set in the ancient city of Babylon, which originally stood around 8000 years ago. e.g thee, thou, thy and so on.The Richest Man in Babylon is a 1926 book by George S. If you don’t like the old English language, you may not like the book.It’s a short (and VERY engaging) read (124 pages on Kindle).Very relatable characters (and their sufferings) despite in different time and trade.Each important message is succinctly delivered.Each parable is laid out in an engaging way.Despite it’s written in 1926, it was surprisingly easy to read.The book continues with various parables and teaches us “ The Five Laws of Gold” and more. Increase thy Ability to Earn – Increase earning potential by developing and acquiring skills.Insure a Future Income – be prepared for old age or unexpected events with pension and retirement income.Make of thy dwelling a Profitable Investment – own your home.Guard thy treasure from loss – don’t take a risk of loss and avoid get-rich-quick schemes.Make thy Gold Multiply – Invest and compound your investment.Control thy expenditures – don’t confuse essential expenses with your desires.
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Start thy purse to fattening – pay for yourself first: Keep10% of your earnings.The richest man in Babylon Arkad imparts “Seven Cures for a Lean Purse” to build wealth. Later, I learned that the author was actually credited to come up with this phrase first! Takeaways When I came across a familiar phrase “Pay for Yourself First” in the book, I thought, “isn’t it really a timeless phrase to have been used in ancient times as well?” I also loved the fact they actively sought out to learn.