The Richest Man in Babylon is one of the most-read books ever to be written. Author George S. Clason makes a case in the text for the right way to manage your money if you seek to build wealth.
He teaches all of these lessons through the form of a story. You've read the book and go on a journey with a man who wants to understand how he can create the finances he desires.
“I found the road to wealth when I decided that a part of all I earned was mine to keep.” ― George S. Clason, The Richest Man in Babylon
3 Reasons Why Everyone Should Read The Richest Man In Babylon
It's vital that I make a case for this book because I believe that every person should read it at least once. I first learned about the book when I was around 14 years old, and I did not get it. I came back and read it in my 20's, and it made more sense, but I still was not ready for it. Recently the book has helped to change my financial situation thoroughly.
1. It's a Classic Book
The original version of this book was written in 1926. It said a lot when a book was written that long ago, and people still lean on it for sound advice. When wisdom is sound and lasts the test of time, you need to look into it and understand why.
Our society is way too obsessed with the new. The Bible says that "there is nothing new under the sun." Yet we act like every person with something to say on social media is saying something that has not been saying many times before.
New books are excellent but old books are better.
2. It's Full of Simple Truths
You know that a book is written well when its truth is laid out. Now simple does not always mean easy. But simple means it's not complicated to figure out what you need to do.
You don't finish reading the Richest Man in Babylon and feel the need to do a tonne of research to figure anything out. There is no need. The truths are laid out with an unusual amount of clarity.
3. Take Small Actions Over a Long Period
The one thing that stands out in the book is the power of small changes. You don't need to make any drastic changes. You also should not expect any final results. Everything will come slow and over a long period.
Understanding the truth laid out in the book means you also get that time is your best friend. If you make some small changes and stick with them for the next 20 years of your life, you will be drastically different.
The original version of this book was written in 1926. It said a lot when a book was written that long ago, and people still lean on it for sound advice. When wisdom is sound and lasts the test of time, you need to look into it and understand why.
The Richest Man In Babylon 7 Rules of Money
Here are the seven money lessons that are taught throughout the book. It's not just about making money but also how to keep making it and protect what you have made.
1. Start thy purse to fattening: save money
One of the simplest truths of the entire book is that you need to pay yourself first. This knowledge is nothing new, yet so many people choose not to listen to advice. When you save money, it opens up the door for new opportunities simply because you have the money.
Saving money is a mindset of understanding that before you pay any bills, you have to pay the first bill to yourself. When you keep doing this long enough, you end up with a pretty good stash of money that begins to collect interest.
The final important point with saving money is that you can start doing this, no matter where you are. If you have any income, make 10% off for yourself no matter what.
2. Control thy expenditures: don't spend more than you need
The second way to save more is if you can keep the money you spend down. You want to develop this mindset before you make more money. Otherwise, you will begin to spend more, as well.
Spending is about living below your means. Too many people get a little bit of money, and they buy a house and car that they cannot afford. Live as far below your means as you can instead.
3. Make thy gold multiply: invest wisely
Once you learn to save and you drop your expenses. Its time to find ways to make your money begin to grow and work for you. Rich people don't just have cash sitting around. Instead, they take the money and invest in investments like a business or real estate to help their money grow.
4. Guard thy treasures against loss: avoid investments that sound too good to be true.
When you have money saved, people will begin to approach you with many investment ideas, and you have to be smart with your payment. If something sounds too good to be true, then it probably is.
You have to keep a lookout for the wolves out there who want to steal your money. Be prudent and only make sound investments.
5. Make of thy dwelling a profitable investment: own your home
You want to own your home. It's one of the easiest ways to build wealth over a long period. There is a peace of mind that comes from knowing that the place you lay your head to rest belongs to you.
6. Ensure a future income: protect yourself with life insurance
You want to protect your income and life by making smart moves to prevent huge losses. Having life insurance, car insurance, house insurance is a must. Look into covering any other things that can help to prevent against losses you could take. No one looks forward to spending money on insurance, but it's a smart thing to do.
7. Improve thy ability to earn: strive to become wiser and more knowledgeable
Once you have 1 - 6 done, you will be in a perfect spot. The best thing you can do at this point is to sharpen the saw and keep learning everything that you can. Keep building up your knowledge in different areas, and in time, that knowledge will become wisdom.
One of the simplest truths of the entire book is that you need to pay yourself first. This knowledge is nothing new, yet so many people choose not to listen to advice. When you save money, it opens up the door for new opportunities simply because you have the money.
What Happens When You Apply The Richest Man in Babylon to Your Life
When you begin to apply the Richest Man in Babylon to your life, you begin to have a peace of mind. There is nothing remarkable about living from check to check. Its terrifying knowing that all it takes is for one adverse life event, and it will break you.
- Losing your job
- Recession
- Car breaking down
- Medical bills
These are everyday things that can wreck your life when you are living from paycheck to paycheck. The Richest Man in Babylon provides a simple path to get away from that life.
When you begin to save your money, you develop discipline and self-control. That same discipline and self-control will help you build other success habits that can take your life to a whole new level.
One of the best things about saving money and getting out of living month to month is that you begin to see options open up. Before you could only focus on bills, now you start to see investments, ideas, and so much more come to the table.
When you begin to save your money, you develop discipline and self-control. That same discipline and self-control will help you build other success habits that can take your life to a whole new level.
20 "The Richest Man in Babylon" Quotes
1. “Good luck can be enticed by accepting opportunity.” ― George S. Clason, The Richest Man in Babylon
2. “I found the road to wealth when I decided that a part of all I earned was mine to keep.” ― George S. Clason, The Richest Man in Babylon
3. “It costs nothing to ask wise advice from a good friend.” ― George S. Clason, The Richest Man in Babylon
4. “A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford.” ― George S. Clason, The Richest Man in Babylon
5. “Preceding accomplishment must be desire. Thy desires must be strong and definite.” ― George S. Clason, The Richest Man in Babylon
6. “The more of wisdom we know, the more we may earn. That man who seeks to learn more of his craft shall be richly rewarded.” ― George S. Clason, The Richest Man in Babylon
7. “Men of action are favored by the Goddess of good luck.” ― George S. Clason, The Richest Man in Babylon
8. “Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon.” ― George S. Clason, The Richest Man in Babylon
9. “Confuse not the necessary expenses with thy desires.” ― George S. Clason, The Richest Man in Babylon
10. “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.” ― George S. Clason, The Richest Man in Babylon
11. “Without wisdom, gold is quickly lost by those who have it.” ― George S. Clason, The Richest Man in Babylon
12. “Gold cometh gladly and in increasing quantity to any man who will put no less than one-tenth of his earnings to create an estate for his future and that of his family.” ― George S. Clason, The Richest Man in Babylon
13. “A fat purse quickly empties if there be no golden stream to refill it.” ― George S. Clason, The Richest Man in Babylon
14. “Before you entrust you investments into any field, acquaint yourself with the dangers which may befall your principal.” ― George S. Clason, The Richest Man in Babylon
15. “Where determination is, the way can be found.” ― George S. Clason, The Richest Man in Babylon
16. “Every gold piece you save is a slave to work for you. Every copper it earns is its child that also that can earn for you.” ― George S. Clason, The Richest Man in Babylon
17. “Our acts can be no wiser than our thoughts.” ― George S. Clason, The Richest Man in Babylon
18. “Provide in advance for the needs of thy growing age and the protection of thy family.” ― George S. Clason, The Richest Man in Babylon
19. “Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.” ― George S. Clason, The Richest Man in Babylon
20. “You’ve learned the lessons well. You first learned to live on less than you earn. Next you learned to seek advice from those who are competent. Lastly, you’ve learned to make gold work for you.” ― George S. Clason, The Richest Man in Babylon