The Richest Man In Babylon
The Richest Man In Babylon: Book Review
If I give you $10 million, do you think you would be able to preserve this money while fulfilling your need and also grow it along the line? I know many of you wouldn’t. The first thought you would have is to buy fancy clothing for yourself, some nice cars, maybe mansions, and whatnot. And you wouldn’t be alone. 99% of you would think the same.
But you know, I wouldn’t!! “How can you be so sure? I know you are joking.” You might say to yourself.
But I kid you not!
I am so sure that by god’s grace when I can get such vast money that it confuses my mind, I would take it all and invest it. I would invest 80% in US and India Equity markets and the rest in some well-secured bonds to get a constant yield. That’s it. No ego gratification. Zilch expensive cars. No shiny dresses.
I would earn the dividend and interest payment and utilize a tiny portion of it on my necessities, and the remaining would be to build maybe a decent home. Not to inflate the living standard, but just a wonderful home whose maintenance doesn’t burn a hole in my pocket. I know this all sounds too theoretical, and you can laugh at me if you want. But the teachings of the book I just finished have created a bulletproof idea in my mind on how to treat money differently. The intention of writing about my plan is just to show the difference in thinking process after learning important lessons form this book.
A lesson from the distant past. The Richest Man in Babylon is a collection of teachings to better manage your money and enjoy life as you desire. The people of those eras must be genius because when you read them, you’ll find that these teachings are still very much practical and work as the initial step towards your financial success. You will be focused so much on safeguarding your future. I am sure that you will follow their rules obediently. Money has its own virtues and vices. How you use it makes all the difference.
The book mentions about various characters in the city of Babylon and how they were able to amass the wealth they had. Teachings inside this book are the foundational rule that you require to grow. As you thrive and create better finances, you make better decisions, and to evolve towards a better future, I would recommend you to advance to the next ladder in your journey, and that would be by the lessons of The Psychology of Money. The next stage for the financial success and independence would be discovered in the teachings of The Millionaire Fastlane.
Coming back to our book, The Richest Man in Babylon has been one of the most celebrated and enjoyed books in the personal finance world, partly due to its effortless storytelling and short-sized book and partly due to its outstanding concept. I have taken some notes to improve my finances, and I am sure you would also find this book helpful. This book has so much financial wisdom, which will never fail to surprise you. Each lesson applies to building a vast sum and shielding yourself against uncertainties.
The ideas in The Richest Man In Babylon has been so life-altering for me, so to ensure a wealthy future and to avoid any derailing of the plan I have written myself a note on how I would spend my money if at any moment I receive sum that is more than I require.
The Richest Man In Babylon: Book Summary in 3 sentences
- Understand the economics of money.
- The fundamentals to grow your wealth to lead a prosperous life.
- Only hard work can earn you money. Procrastination and carelessness will never lead to the accumulation of wealth.
Who Should Read It?
The Richest Man In Babylon is one of the basic and must read book, for personal finances. From the moment you develop a desire to earn money, this book should be read to bring you clarity as to how to utilize the money when you start earning it.
Top 3 Quotes
- Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
- Gold slippeth away from the man who invests it in business or purposes with which he is not familiar or which are not approved by those skilled in its keep.
- Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
I’ve compiled notes on some of the key topics in the book which can give you a better overview of the content you’re gonna find in The Richest Man In Babylon.
The Richest Man In Babylon Notes
Seven Cures Of Lean Purse 💸
- The First Cure: Start thy Purse To Fattening : Save a tenth of your earnings, no matter the situation. Adjust your expenses so as to accommodate them in those remaining part. As you build your habit, you are easily able to adjust your expenses and it becomes easy as you go ahead.
- The Second Cure :Control thy expenditures: Spend your money for necessary items only. Expenses beyond the necessary needs are nothing but an action for ego gratification. Budget your expenses to make your every penny count. Get the maximum value of each penny spent.
- The Third Cure :Make The Gold Multiply: Invest your savings into worthy investments to let your money grow. The invested amount grows multiplies with compound interest and your wealth grows exponentially.
- The Fourth Cure: Guard thy Treasures from Loss: Do not get swayed by large returns where there exists a risk for loss of principle. Learn to guard your investments so that you could be entrusted with bigger amounts.
5.The Fifth Cure: Make of thy Dwelling a Profitable Investment: Try to use the remaining nine-tenth of your investment in such a manner that you can purchase some worthy investments such as a house or an asset that could help you and your family. Adjust your finances accordingly. Do not touch your savings as you would thus developing an additional security against any unfortunate event.
6.The Sixth Cure: Insure a Future Income: Ensure a future income by allocating your savings in such a manner that you are able to earn regular money like rentals, when you are no longer able to work or no longer want to work.
7.The Seventh Cure: Increase thy Ability to Earn: Your earnings are attached to the skills you possess. The higher the skill set, more likely you are to be paid more. Be determined to perform better each day which is possible only by taking more interest in your duty and doing the task sincerely.