Financial Lessons From The Richest Man In Babylon
The Richest Man in Babylon is a book with fables on how to build wealth and acquire riches. The book contains simple principles which when implemented can change one’s financial status. Notice, I highlighted “implemented” because only principles that are implemented will bring results. So, let’s dive in.
Wealth is power. With wealth many things are possible and to achieve wealth, time and study are needed. To acquire wealth, you need a great desire for wealth and deliberately invest your time in the study of being rich and how to accumulate wealth.
One of the rules to acquire wealth is to save at least one-tenth of your income to invest to make the money work for you. In addition, seek knowledge before investing. Enquire someone that has knowledge about a particular field before investing. Advice is one thing that is freely given but watch that you take only what is worth having. He who trusts his savings with someone inexperienced about the area shall pay with his savings.
Seven (7) cures for a Lean Purse
The seven cures for lean purses are the rules to abide by in order to move from brokenness to wealth. The rules include:
- Fatten your Purse. Meaning you should start increasing the amount of your savings by always keeping one out of every ten earning.
- Control your expenditures. Delay gratification and budget to always spend money on things that are really necessary. Spend only from the nine-tenth of your income and never spend your savings.
- Make your gold multiply. Invest your savings to make your money work for you and bring more returns.
- Guard your investments against loss by investing where your money is safe and can be reclaimed. Seek advice from those who are experienced in investing before investing.
- Make your dwelling a profitable investment. Own your own home to save the cost of living and more money will be available for the gratification of other desires.
- Ensure a future income. Provide in advance for the needs of your growing age and the protection of your family.
- Increase your ability to earn. Invest in yourself and your personal development. Be skillful and knowledgeable.
Wealth can be acquired faster by grabbing opportunities and avoiding procrastination. Good luck favors those who take action quickly.
You attract good luck in your quest for wealth when you take advantage of opportunities and also taking action quickly by conquering procrastination.
To be debt and financially free it is advised to save 1/10(10%) of the money you earn for future investment, 7/10(70%) should be used to satisfy your needs and 2/10(20%) should be used to pay up debts.
The pattern should be strictly adhered to to get results.
These principles are really easy to abide by and I have started implementing by always saving 10% of any income I get to invest later and I noticed it’s really possible to live off the 90% remaining.
Thanks for reading through and I hope you really do implement.