One of the classic books on personal finance is entitled the richest man in Babylon.
I couldn’t get into the book because I couldn’t understand it clearly, and it was heavy-going.
The plot was boring or confusing for me it was difficult to finish the book.
This is the short summary of The Richest Man in Babylon.
First and foremost, pay yourself before others. The second lesson to learn is that men of action are more successful in the long term.
Three is that wealth is a function of expenses, not income. Fourthly, take action when the right time comes. The fifth lesson is the power of passive and exponential income.
The summary also includes key insights and key passages from the book
- You should save 10 percent of your income so it will grow. The more you save, the more money you will have in the future.
- Learn to live on 90% or less of your income. Ideally, you should be able to sustain your lifestyle on just 90% of your income.
- Don’t spend more than 90% of your income. Examine where your money is going.
- Think before you are buying expensive luxury items; Don’t buy expensive luxury items if you don’t need to.
- Invest your accumulated capital into projects that will provide a safe steady income taking advantage of compounding.
- Invest only in areas in which you have the expertise or with experienced people.
- Buy the house you live in so you don’t waste any money on rent. Because living in rent means paying every month rent to a landlord.
- It is better to buy a house to live in than to pay rent every month to your landlord.
7 cures for a lean Purse
- Start your purse to fattening.
- Control your expenditures.
- Make your gold multiply.
- Guard your treasures against loss.
- Make your dwelling a profitable investment.
- Ensure a future income
- Increase your ability to earn.
The Richest man in Babylon
Quote by George S. Clason Wealth like a tree grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow.
It is better to plant that seed as soon as possible so that trees can grow faster.
The 5 laws of gold
- Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
- Gold diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
- 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 purpose 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 inexperience and romantic desire in investment.
Thanks for reading this book summary. I hope you enjoyed it, and please don’t forget to share it on Facebook, Instagram, and with your friends. Leave a comment on what you think about this book summary.