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.
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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)
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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.
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