The Richest Man in Babylon is a book by George Samuel Clason which dispenses financial advice through a collection of parables set in ancient Babylon. Through their experiences in business and managing household finance, the characters in the parables learn simple lessons in financial wisdom. This book contains key lessons:
The 7 simple rules of money:
1) Start thy purse to fattening: save money.
2) Control thy expenditures: don’t spend more than you need.
3) Make thy gold multiply: invest wisely.
4) Guard thy treasures from loss: avoid investments that sound too good to be true.
5) Make of thy dwelling a profitable investment: own your home.
6) Ensure a future income: protect yourself with life insurance.
7) Improve thy ability to earn: strive to become wiser and more knowledgeable.
To bring your dreams and desires to fulfillment, you must be successful with money.
The laws of money are like the laws of gravity: assured and unchanging.
Money is plentiful for those who understand the simple laws of making money.
Babylon was the wealthiest city in the world at the time of its height because its people appreciated the value of money.
You must constantly have an income that keeps your purse full.
“It costs nothing to ask wise advice from a good friend.”
It’s simple to say, but many people never achieve a serious measure of wealth because they never seek it. They never truly seek it, focus on it, and commit to it.
Youth often assumes, incorrectly, that the old and wise only have wisdom about days gone by.
You will only begin building wealth when you start to realize that a part of all the money you earn is yours to keep. That is, pay yourself first. You always pay others for goods and services. Pay yourself as much as you can. Save money.
You should save at least 1/10th of what you earn. More if you can afford to do so.
Do not take advice on finance from a brick layer. Go to people who are experts in a particular subject if you want expert advice. It’s too easy for amateurs to give out advice.
Build for yourself a mountain of gold first, then you can enjoy as many banquets as you wish without worry. Don’t spend your money as soon as you earn it.
Surround yourself with people who are familiar with money, who work with it each day, and who make lots of it.
Enjoy life while you are here. Do not over strain to save.
Do not put your money in investments which do not pay a dividend, but also do not invest in risky places that seem too good to be true.
What each person calls their “necessary expenses” will always grow to match your income unless you resist that urge. Do not confuse your necessary expenses with your desires.
“A man’s wealth is not in the coins in his purse. It is in his income.”
Ensure a future income. Every person gets old. Make sure your income will continue without work.
By life insurance. Provide in advance for the protection of your family.
Increase your ability to earn. Improve your skills. As you perfect your craft, your ability to earn more increases.
The more we know, the more we may earn. The person who seeks to know more of their craft is capable of earning more.
You cannot arrive at the fullest measure of success until you crush the spirit of procrastination within you.