I’m kicking off a series of blog posts where I will share with you the lessons I learned from the inspirational and education book “The Richest Man in Babylon” by George S. Clason.
The book gives valuable insights on how to begin building up wealth, controlling your expenses, multiplying your income, safeguarding your money, investing properly, insuring that you have money when you retire and how to increase your ability to earn. The book is composed of different parables which makes it all the more interesting and for me more easy to understand and interpret what the author would like the reader to learn out of each parable.
The book, “The Richest Man in Babylon” was written way back in 1920 and this is where I realized that the principles of growing money, investing and earning remains up to today.
As the author says in the book, the laws of money he discusses are similar to the law of gravity, they are universal and unchanging.
Let me start with the 7 money lessons and my own interpretation for each. I will go deeper with each parable, what lesson I learned and how do we apply it to our financial lives today and how it relates to investing in the stock market.
- Start thy purse to fattening.
- It is always best to start building up your wealth early. As soon as you have any source of income, it would be wise to already set aside fixed amounts and grow your savings.
- It is never too late to start saving, if you have extra income today, try to be consistent in saving a portion each month.
- Control thy expenditures.
- This is one principle which is very consistent in almost all financial books.
- Simple living is good, specially in the early part of your earning life.
- Limiting expenses to only your necessities is a good start to be able to save.
- Make thy gold multiply.
- Once you have accumulated some amount of savings, it’s time to start investing. Savings accounts have low interest rates nowadays, thankfully, we have a lot of investment options available.
- Guard thy treasures from loss.
- It would make sense to insure your hard earned money and assets.
- Make of thy dwelling a profitable investment.
- Whatever your source of income, be it from your job or from your business, always make it a point to be profitable, with your expenses always less than your income.
- Insure a future income.
- Save for your future, save for your retirement.
- This will insure you live comfortably in your post-earning years.
- Increase thy ability to earn.
- Keep on searching for additional sources of income.
- Always have a backup, you never know what will happen in the future.
This is just an introduction, I assure you, this will be a very inspiring and educational series of posts on “The Richest Man in Babylon” book.