Book Review: The Richest Man In Babylon

Reading Time: 2 minutes

The Richest Man in Babylon is one of the best personal finance books I have ever read. This book contains the BASIC PRINCIPLES that you need to follow to attain financial success.  It contains timeless, straightforward lessons that are worth MILLIONS over a lifetime, and I have shared a few of these financial lessons below:


1. Start thy purse to fattening: Pay yourself first
  • Out of every single penny of money that comes in, take at least 10% of it and put it into your savings.
  • The goverment, your desires, your family, your friends, your favourite shop – everyone and everything wants a piece of your income, so always Pay Yourself First.

 

2. Control thy expenditure: Spend less than you earn
  • Grow the nerve to say no to the drinks, your friends, the consumerism that is being fed everyday through advertising.
  • A lot of us spend more than we earn. It is not sustainable, in a saner clime this is referred to as being BANKRUPT. Stay disciplined and living within your means.

 

This is an awesome modification of ‘The Richest Man in Babylon’ that I would recommend you use – Here is the link  

3. Make thy gold multiply: Make your money work for you
  • You need to have every single dollar working for you. That means, INVEST!!!
  • Whether it will be in your side business, a mutual fund, a farm or any investment. It is important that you LEARN TO INVEST.
  • Compound interest will work wonders…with TIME.
  • Reinvesting the money you earn from your investments will help you experience the power of compounding

 

4. Guard thy treasures from loss: Protect your wealth
  • Make sure you are investing and insuring your investments properly so you are protected from getting wiped out.
  • Knowledge is key, ask your investment broker the right questions before investing and also Do your Own Research (DYOR)

 

This is an amazing summary of ‘The Richest Man in Babylon’, that I would recommend you use –  Here is the link 

5. Make of thy dwelling a profitable investment: Be wise with your money decisions
  • Every decision you make must be thought through.
  • Delayed gratification is KEY if you want to achieve long term financial success.
  • Ask yourself: Instead of spending on a luxury, does it make sense to invest or save that money?

 

6. Insure a future income: Take care of your old self today
  • Most of Us have absolutely no idea how we are going to sustain ourselves when we can’t work anymore. Plan accordingly.
  • Plan for that time, NOW

 

7. Increase thy ability to earn: Invest in yourself
  • There are a number of people that will gladly spend ₦500,000 on luxuries without over thinking it but struggle to buy a ₦5,000 book or seminar that will grow them mentally.
  • It is important increase your earning potential by increasing what you know/understand about money
  • There is a lot of knowledge out there, most of it is for free. There are no excuses.

 

You can get your very own copy of ‘The Richest Man in Babylon’ – Here is the link

 

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