![]() ![]() In the book’s words, don’t take advice on finance or savings from a common laborer. Many people will love to give you their own investment in money-saving advice which you should ignore unless you know of their prior success. #10 Don’t Take Advice from Inexperienced People Clason essentially points out that, even if you aren’t interested in becoming a business tycoon, learning how to properly manage and grow your wealth is needed if you want to live your life to its fullest extent, period. Virtually no one reaches their dreams or their maximum potential without the money necessary to secure their goals. Specifically, the book says to avoid investing in things you aren’t familiar with and preventing your romantic desires from interfering with your investment opportunities. ![]() The last two laws talk about how your money might be lost. The first three of these laws focus on building wealth and are very similar to the earlier rules mentioned above. Set specific and measurable goals to help you keep moving.Īnother key aspect of these parables is the aforementioned five laws of gold. You should always be taking jobs or going to classes, always improving yourself rather than resting on your laurels. You should always put yourself in positions in which you can make more money either by making yourself more employable or learning more marketable skills. Don’t spend all of the money you earn today save plenty of it and make sure that you will have enough money to live comfortably in your twilight years. The book’s stories delve into the idea of planning for your retirement and investing in insurance. ![]() This is essentially a rehash of the old “owning your own home versus renting” debate, with Clason coming down largely on the side of owning. ![]() You should eventually be making payments that will eventually become equity instead of paying a landlord for your entire life. One of the best investments you can make is by investing within your own home. Take a big picture view and make your risks carefully, without spending too much cash at once. This means making smart investment choices and refusing to invest too much of your money in the event of a poor stock market day. The book focuses on protecting your principal capital from any kind of loss. You should start by making small but smart investments and take advantage of things like compound interest to their maximum effect. Money that is just sitting in the bank and not making you extra cash is essentially being wasted. Chances are you don’t really need whatever new thing you want to buy.Īnother key lesson from this book revolves around using your existing currency to make you more money. Avoid letting your mind tempt you into spending more money just because you can. In the modern context, this means avoiding lifestyle inflation when you get a raise and continuing to live within your means no matter how much money you make. The second primary lesson revolves around controlling how much you spend. This will start you well on your way to saving a significant amount of money. The recommendation means you should save about 10% of all the income you earn, even if you are paying off debt. In essence, this means that you should pay yourself first. The first of these is arguably the book’s central point – “start thy purse to fattening”. A 3 Minute Summary of the 15 Core LessonsĪccording to the book, Arkad, the richest man in Babylon, shares seven major points that both individuals and general society can use to improve their financial growth and success. It provides financial advice through the lens of parables that are set in the ancient city of Babylon, which originally stood around 8000 years ago. The Richest Man in Babylon is a 1926 book by George S. ![]()
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