10 Key Financial Lessons from The Richest Man in Babylon
The Richest Man in Babylon is possibly the most insightful book on personal financial management. However, the community that has formed around the book has primarily preached the message of saving 10% of your income. We have dissected this classic and are presenting some of the most fundamental ideas in wealth creation. Ten Key Financial Lessons from The Richest in Babylon is the first of three articles that we will publish. Download the full text PDF for a detailed exposition on each of the ten lessons listed below.
Lesson 1 : Passive Income.
“Income, that is the thing” ~ Bansir.
Lesson 2 : Money Begins in Your Head
“A man’s wealth is not in the purse he carries. A fat purse quickly empties if there be no golden stream to refill it.” ~ Kobbi, Friend of the Seeker.
Lesson 3 : A Part of All I Earn is Mine to INVEST.
“A part of all I earn is mine to keep” ~ Algamish, The Money Lender
Lesson 4: The First Cure: Spend Less Than You Earn.
“For each ten coins thy put in, to spend but nine” ~Arkad, The Richest Man in Babylon
Lesson 5: The Second Cure: Use A Budget to Control Your Expenditure.
“Who, my friend, would determine thy budget?” ~Arkad, The Richest Man In Babylon.
Get more information on each of the laws by downloading the full PDF Article.
Lesson 6 : The Third Cure: Compound Interest.
“If you will be wealthy, what you save must earn and it’s children must earn…” ~Algmaish, The Money Lender
Lesson 7 : The Fourth Cure: Don’t Loose Money.
“There are only two rules of investing, 1. Don’t loose money, 2. Don’t transgress rule number 1.” ~Warren Buffett, The Oracle of Omaha
Lesson 8: The Fifth Cure: Own Your Own Home
“…Therefore do I recommend that every man own the roof that sheltereth him and his” ~ Arkad, The Richest Man in Babylon
Lesson 9 : The Sixth Cure: Invest in Life Insurance, Pension Schemes and Long Term Vehicles such as Index Funds
“Provide in advance for the needs of thy growing age and the protection of thy family” ~Arkad, The Richest Man in Babylon.
Lesson 10 : The Seventh Cure: Increase Thy Ability To Earn.
The goal of BestYouPRO International is create a community of people who are striving to become the best version of themselves. It’s in our name and in our creed, “to become the best version of ourselves”. And it is a never ending process, that is why our platform is called #JOURNEY. We believe very strongly that our learning should never end. Some time ago, I wrote the blog post “Personal Development – Why You Should Care” and published it on the BestYouPRO website. If earning more isn’t a good reason for you to embark on the personal development #Journey then this article makes a case using four other arguments. The simple yet powerful truth that the Richest Man in Babylon stated in regard to continued professional and personal growth are:
- The Man who seeks to learn more will be richly rewarded.
- The more wisdom we know, the more we may earn.
- And finally, if we practice these truths we will grow prosperous and wealthy.
There is abundance for all. This article is the first of a three part book summary of George S. Clason’s “The Richest Man in Babylon”, please visit us again for parts two and three.
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