7 Money Lessons from The Richest Man in Babylon by George S. Clason

The Richest Man in Babylon, written by George S Clason, is one of the most popular wealth & money books in human history.

Published in 1926, it follows Arkad, the richest man in Babylon, who is summoned by King Sargon to share with others his knowledge on wealth building.

Arkad asserted that opportunity is a haughty goddess who wastes no time with those who are unprepared.

Therefore, if the Babylonians should desire to amass great wealth, then they have to thirst for its knowledge.

It’s lessons and knowledge are still very relevant today, and have helped millions build wealth and change for the better financially.

Here are 7 key lessons from The Richest Man in Babylon.

Guard Your Treasure Against Getting Lost

Many people rush into luxurious deals hoping to pluck back huge profits, only except that when you risk your money, you risk losing wealth.

Don’t be misguided by your own selfish desires to amass wealth rapidly, because in truth, get rich quick schemes don’t work.

When investing, don’t take any advice from an inexperienced person, but make safe investment decisions.

He who takes advice about his savings from one who is inexperienced in such matters, shall pay with his savings for proving the falsity of their opinions.

Keep your money safe, acknowledge the value it possesses, and don’t take on foolish ventures.

Insure Your Future Income

Every person must think of the days to come when you’ll no longer be young.

When time has made you unable to learn, the best way to take care of your family is by making preparations for your retirement.

Every penny you save or invest today, makes your future that much easier.

Your future self will thank you for the decisions you make today based on how you treat your riches.

Provide in advance for the needs of your growing age and the protection of your family.

Own A Home

Make your dwelling place a profitable investment, says Arkad.

Owning your own home increases the amount of money to be set aside since you save on rent, and your disposable income is ultimately greater.

The Richest Man in Babylon ignites the thought that, to a man’s heart it brings gladness to eat the figs from his own trees and the grapes of his own vines.

To own his own place that he is proud to care for, he puts confidence in his heart and greater effort behind all his endeavours.

Ownership is fundamental to building wealth, whether it be a:

• Home

• Business

• Investments

Or more.

Start to Fatten Your Purse

If you want your financial accounts to thrive, start by setting aside 10% of your income.

The 10% income is a way of paying yourself first, and should never be used for expenses.

When you set aside 10% of your income, you will automatically adjust your budget to fit the remaining 90%.

If you do this more often, chances are that your account shall be holding a threshold amount for every payday.

For every ten coins you place within your purse take out for use but nine.

Your purse will start to fatten at once and its increasing weight will feel good in your hand and bring satisfaction to your soul.

Make Your Savings Multiply

Perhaps a person’s wealth doesn’t lie in the money he has in his account, but in the income his profit generates over time.

Since every man desires a continuous flow of income, whether you’re working or on vacation, you should employ your savings to work for you.

Pick investments that you will earn for, and upon realisation of profits, reinvest the profits so that every dime you earn makes for you money.

It’s not wise to keep large amounts of cash in today’s time, due to inflation, so, investing in…

• Stocks

• ETFs

• Real estate

…and more is a must.

Put each coin to labour so that it may reproduce a stream of wealth that shall flow constantly into your purse.

Control Your Expenses

One of the major reasons why you may find it difficult to set aside the 10% is because of poor spending habits.

This is a result of insatiable desires that provide us with nothing but a small dose of instant gratification.

The Richest Man in Babylon hints that desires grow in men so freely whenever there’s a possibility of them being fulfilled.

You’re then tasked to thoughtfully study your bad money habits of living for you to find expenses that could be reduced or eliminated completely.

A skilful way to do this is by creating a budget.

The main purpose of drafting a budget is to identify leaks from your account, and also helps to control your spending.

Therefore, the lesson is to always budget for your expenses, so that you may have coins to pay for necessities, enjoyments and to grant your worthwhile desires without spending more than 90% of your earnings.

Increase Your Ability to Earn

The last lesson in wealth creation by Arkad, the Richest Man in Babylon is to cultivate your own powers, to study and become wiser, and to become more skilful.

Therefore, it is the burden of all to acquire confidence so as to achieve their desired goals.

Although controlling your expenses is important, it is limited.

What is unlimited is your potential to earn.

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