![]() Train yourself, go to classes, take jobs on the side whatever you chose, set specific and measurable performance goals and start working to earn more money now. Position yourself to make more money by improving your skills and making yourself more employable. Due to the fact that insurance didn’t exist in ancient Babylon, Clason really doesn’t dive into this point much at all. This boils down to retirement planning and insurance. owning debate, I will defer to a Scrooge Strategy tip and say “run the damn numbers” and see which method makes sense for you at this particular point in your life. Rather than getting sucked into renting vs. Clason’s argument is that it makes more sense to make payments that will eventually become equity rather than giving money to a landlord. Make of Thy Dwelling a Profitable Investment Know your risk aversion and understand the risks in your portfolio. The penalty of risk is the potential of loss. If you take a bigger picture view, however, the lesson becomes more palatable. ![]() ![]() It is easy to criticize this idea, as most of us feel that investment vehicles that have the potential to lose value, such as stocks, are essentials part of a balanced portfolio. Here, the book encourages the protection of principle from loss. Put your money to work by making smart investments and taking advantage of time and compounding interest. Your wealth should extend beyond your income. Clason deems lifestyle inflation to be an ‘unusual truth’ of humanity and states, “what each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary.” 3. Control Thy ExpendituresĮssentially, this is learning to live within your means and avoiding lifestyle inflation. If you want to save money for your future, you must begin by consistently setting aside part of your earnings today. Clason recommends saving at least 10% of all income earned.Įven in his example of those who are paying off debt, he still advocates setting aside this one-tenth. This point is actually the crux of the book: the classic principle of paying yourself first. At the bequest of the King, Arkad shares his “seven cures to a lean purse” so that both individuals and society as a whole can reap the benefits of fiscal growth. The primary lesson comes from Arkad, the proclaimed richest man in Babylon. While I do believe that the book is full of sound principles and a strong basic framework, I also feel some of the details are debatable. Similarly to Sunday school, while there are many great truths to be learned, it can also be difficult to stay awake at times.Īnother effect of framing the book this way is that the advice given comes across as “Biblical” and infallible. ![]() That said, the book’s format and diction will likely feel familiar to any who has attended Sunday school. ĭespite titular connotations, The Richest Man In Babylon is not religious. While none of the concepts are likely to be earth-shattering for most readers, they encapsulate the fundamentals that are the basis of money management. The common theme of the tales is that a person can work hard, learn from their mistakes, and become wealthy. His goal, to provide insight to “those who are ambitious for financial success,” is achieved through simple storytelling.Īs a series of short stories, the book teaches straightforward lessons that aim to show that the secrets to wealth building are unchanging and remain applicable throughout history. In the book billed as “the Bible of financial freedom,” George Clason shares a timeless set of principles in The Richest Man In Babylon. Rachel is a 20-something financial analyst. Below is another book review installment from Rachel Stephens.
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