George Samuel Clason’s book, The Richest Man In Babylon, is just as relevant today as it was in 1926 when it was published. It is one of my best personal finance books. The book chronicles how Arkad used practical money management and wealth-building lessons to become the richest man in the ancient city of Babylon. Arkad achieved this feat by riding on the wisdom he gathered from the rich money lender called Algamish. This article shares 7 money nuggets from The Richest Man In Babylon Book.
You will find below 7 simple steps you can employ diligently to build your long lasting wealth.
1. Pay Yourself First
The first nugget is to pay yourself first.
For every ten coins that come into your wallet, take out ONLY 9 for use. This ensures your purse continues to fatten. The increasing weight of your purse will feel good in your hand and bring satisfaction to their soul. In summary, save 10% of your income every time.
2. Live Below Your Means
What each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary. So, do not confuse the necessary expenses with your desires. In summary, live below your means.
3. Make Your Gold Multiply
The gold you may retain from your earnings is but the start. The earnings it will make shall build your fortunes.
So, learn to make your treasure work for you.
Make it your slave. Make its children and its grand children work for you. In summary, make your money work for you.
4. Guard Your Treasures Against Loss
The first sound principle of investment is security for thy principal.
It is not wise to be intrigued by larger earnings when your principal may be lost. This is because the penalty of risk is a probable loss. So, study carefully, before parting with your treasure and have the assurance that it may be safely reclaimed. Be not misled by thine own romantic desires to make wealth rapidly. In summary, protect your wealth.
5. Make Your Dwelling A Profitable Investment
Arkad recommends that every man own the roof that sheltered him and his. According to him,
For every man to own his own domicile and to have it a place he is proud to care for, put confidence in his heart and greater effort behind all his endeavors.
In summary, build or rent a home you can comfortably afford. So, create a house rent plan and save towards that financial goal.
6. Increase Your Ability To Earn
“That man who seeks to learn more of his craft shall be richly rewarded. The more of wisdom we know, the more we may earn.”
Cultivate your ability to study and become wiser and to become more skillful. This empowers you to be confident in yourself and achieve your desires. This is one of the best money nuggets in the Richest Man in Babylon. Your capacity to earn more means you can save more and ultimately achieve your financial goal faster.
7. Ensure A Future Income
“The life of every man proceedeth from his childhood to his old age. Therefore do I say that it behoves a man to make preparations for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them.”
In summary, plan for retirement. It is not early to start saving for that retirement life you dream of. Start today.
If you are a fan of simplicity, you will enjoy reading this book. The nuggets stated above work like magic every day as long as you are committed to implementing them. So, try to read the full the book for your pleasure if you have some time this weekend.
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