THE RICHEST MAN IN BABYLON SUMMARY

Overview :

Babylon is the Richest country of its time. It is so because its people knew the value of money and the ways to accumulate it. 

In the book “The Richest Man in Babylon”, writer George S Clason renders the knowledge of money and personal finance of the ancient Babylonians through short stories. One key character of these stories is ‘Arcade’, The Richest Man in Babylon.

Key Takeaways :

#1. Save And Invest

“Pay Yourself First”. 

“My wealth started accumulating when I realized a 10th of everything I earn is mine to keep” says Arcade. Save 1/10th of everything you earn. Before you pay your landlord or grocery storekeeper SAVE for your future. Spend less than you earn.

When your savings start growing, choose a good investment option to grow your wealth multifold. Choose an investment option where your investment is safe and grows steadily.

#2. Goddess Of Luck.

Opportunities are not the same for everyone. But everyone has an equal opportunity to be successful. 

Consider a DOER and a Procrastinator. When both of them are given 10 opportunities the doer seizes 9 out of the 10 and the procrastinator takes only 4 out of the 10 opportunities. Hence, the Doer will be successful or “Lucky” in the long run because he took many opportunities. When you are ready to take every opportunity coming your way, You eventually become “Lucky”

“Opportunity wastes no time with the unprepared”

#3. Income is not to wealth

Your wealth is not dependent on how much you earn. 

Though many of our income is not the same and even though some have a much bigger family to support, most of our financial conditions are the same. The reason for this is the way we spend. If we keep increasing our expenses with an increase in our income, our financial condition will always be the same. Instead, with every increase in income, if we increase our savings we can reach our financial goals much faster.

#4. Set Clear and Achievable Goals

Vague goals like “ I want to get rich” cannot help you GET Rich. 

Instead, if you have a goal like “ I want to double my income by the end of this year” You will know what to do and How to do it. A clear goal has definite time and quantity. Make clear, definite and achievable financial goals

#5. Increase Your Ability to earn:

Apart from spending less and saving, Earning more helps you reach your financial goals faster. Clason suggests that we should increase our ability to earn to be financially free. Learning a new course, converting hobbies to side hustles are the ways of improving income.

Apart from these the book also speaks about securing your financial future with insurance, owning your own home, ways to clear debt and who to lend your money to. 

All in all, it’s a great book to learn managing personal finances.

About the Author and the Book:

George S Clason is an American Author. In 1926 he issued pamphlets on thrift and financial success using parables set in Ancient Babylon. The most famous are included in the book “The Richest Man in Babylon”. 

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