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The Richest Man in Babylon
A Thread //
A Thread //
The Richest Man in Babylon is a book of timeless financial advice with some very easy to understand and implement steps.
One of the best sumarisations is 7 cures for a lean purse.
One of the best sumarisations is 7 cures for a lean purse.
1. Start Thy Purse to Fattening.
Take the money you earn from your main revenue source, such as your 9-5 and save at least 10%. This will immediately start increasing your wealth.
Take the money you earn from your main revenue source, such as your 9-5 and save at least 10%. This will immediately start increasing your wealth.
2. Control Thy Expenditure
"All men are burdened with more desires than they can gratify"
Budget your expenses and only spend money on essentials, don't spend the 10% from step 1.
"All men are burdened with more desires than they can gratify"
Budget your expenses and only spend money on essentials, don't spend the 10% from step 1.
3. Make Thy Gold Multiply
Send your saved money out to work for you. Don't have all your savings in a bank account earning very low interest. But put it into things that will pay you back (Investments, Stock, Real estate).
Send your saved money out to work for you. Don't have all your savings in a bank account earning very low interest. But put it into things that will pay you back (Investments, Stock, Real estate).
4. Gaurd Thy Treasure from Loss
Before you invest your saved money be aware of the risks, don't invest all into high-risk investments that are likely to fail. E.g. don't buy Jewels from the Brickmaker. Seek out people who have experience and expertise to help avoid risk.
Before you invest your saved money be aware of the risks, don't invest all into high-risk investments that are likely to fail. E.g. don't buy Jewels from the Brickmaker. Seek out people who have experience and expertise to help avoid risk.
5. Make of Thy Dwelling a profitable investment
If you can buy a home or mortgage it's better than paying the same sum and renting. As with one you are paying to obtain an asset the other you are not. this asset then also has value and can appreciate increasing your wealth.
If you can buy a home or mortgage it's better than paying the same sum and renting. As with one you are paying to obtain an asset the other you are not. this asset then also has value and can appreciate increasing your wealth.
6. Insure a Future Income
Plan for the future and make investment accordingly, use the power of compounding.
If you get a 9% return, investing $250 a month at age 25 would mean by age 60 you'd have $652,235. That's $105,000 invested over the 35 to get $652,235.
Plan for the future and make investment accordingly, use the power of compounding.
If you get a 9% return, investing $250 a month at age 25 would mean by age 60 you'd have $652,235. That's $105,000 invested over the 35 to get $652,235.
7. Increase Thy Ability to Earn
Look to increase income by moving up the Job ladder, growing your business or starting side hustles. As this will make other steps easier as you can put more into them.
Look to increase income by moving up the Job ladder, growing your business or starting side hustles. As this will make other steps easier as you can put more into them.
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