3 Sentence Summary
With more than 2 million books sold, The Richest Man in Babylon is one of the best personal development & business book. Written by Classon George, the book is told in the form of short stories guiding through the finance principles. This book is highly practical and the lessons in them are capable of growing anyone’s purse if applied.
Summary Read Time: Less than 5 minutes
Actual Book Length: 194
First Published in: 1926
If you are looking for traditional, actionable and effective financial wisdom, then this book is perfect for you.
Below is the detailed yet quick summary of the book:
At its peak, Babylon was the wealthiest city in the world. Clason attributes this to the relationship between money and people in Babylon. In his book, he uses stories of characters from Babylon to illustrate these principles for acquiring, keeping and earning money.
The tips in the book not only help you appreciate the value of money; they also guide you to practice healthy financial principles when making money and earning more money.
Accumulate at the rate of 1/10
Arkad tells his story of getting rich from his days as a poor worker. He stresses the importance of having a strong will and always pursuing your goals.
Always tell yourself that “You have to set aside one-tenth of all the money you have earned”. The amount set aside for yourself should not be less than one-tenth of the total earnings, and other expenses must be arranged reasonably so that they can be carried out easily with the remaining amount.
By saving at least 10% of your income and not spending it. As time goes by, the amount increases, and after a certain point, the money becomes your slave.
You can enslave money by saving at least 10% of your income and not spending it as time passes. Even if you begin with little money, you may enslave it if you follow the rule of paying yourself what you earn first. You will not even notice the absence of savings. It does not matter if you start with a lot of less, those who can live on 80-90% of their income and enslave money will become wealthy sooner or later.
Control your spending
It’s crucial to distinguish between essential expenditures and those made out of personal preference. In reality, we and other family members frequently desire things that are not necessities of life. These expenses might be insurmountable.
There are a large number of human desires, and we can only fulfil some of them. Make a list of what is critical to you, then select a few critical things to ensure your survival. View the crossed-out items as thousands of things you cannot satisfy yourself with.
“Planning your expenses right now will help you meet your needs, enjoy the joys of life, full-fill your legitimate desires, and ensure a full life in your life. future.”
Multiply your Gold
Money makes money when you put it to work, so embrace the power of compound interest.
Invest in secure, dependable spots with the highest possible interest rates to safeguard and expand your wealth. A gold coin must return to his pocket on time when it comes out of his pocket.
Don’t invest your money in investments that don’t pay a dividend and avoid risky investments that seem too good to be true.
The 5 Laws of Gold
1) Gold comes easily and in increasing quantity to the person who saves at least 1/10th of their earnings.
2) Gold labors diligently and multiplies for the person who finds it profitable employment.
3) Gold clings to the protection of the person who invests their gold with wise people.
4) Gold slips away from the person who invests gold into purposes through which they are not familiar.
5) Gold flees the person who tries to force it into impossible earnings.
Increase your earning ability
It’s always a smart idea to continue developing your professional abilities, no matter what line of work you’re in. As a craftsman, you should seek to learn new techniques and equipment applications to improve your craft. If you work in the legal or healthcare sector, you can seek advice or exchange ideas with colleagues to increase your knowledge. If you’re a vendor, you must frequently travel to many locations to find the finest products and resell them at a cheaper price.
It’s important to love your job and to work hard. By doing outstanding work and giving it your all, you may earn a fulfilling lifetime and redeem your free time.
Associate with proven success
Make sure you surround yourself with those people who are familiar with money, who deal with it every day, and who make a lot of it. Get advice from them. Beware of those who lack a proven history of success and recompense.
