The Richest Man in Babylon. A famous book about achieving financial independence. This book is a work of absolute gold. It is a must-read for anybody seeking time and financial independence since it shows you how to become financially independent. Arkad, the richest man in Babylon, is instructing other inhabitants of the city how to become wealthy as well. The lessons were discovered on clay tablets were written 5000 years ago and clearly outline the fundamental concepts of becoming financially independent.
You may argue that 5000 years ago was a long time ago, yet the world has evolved dramatically since then. That might be correct. But keep in mind that the rules of money are like the laws of gravity: certain and unchangeable. Some fundamental rules govern how to get wealthy, and they are the same laws that existed 5000 years ago. Now, based on the novel. There is one requirement for becoming wealthy, and that is to want to be wealthy, to ask for it, and to pursue it.
Stories of Babylon
1. Story of the gold lender of Babylon
Rodan, a gold lender, received 50 coins from the king for a job well done and sought counsel from Mathon on how to handle them. What is his opinion?
Only lend to people you trust, who are competent in their industry and have the ability to repay. You might even consider taking some collateral worth the loan’s value if at all possible. This winning mix of variables assures that you will ultimately get your money back.
Sure, we could be tempted to lend money to a family member to help them establish a business. However, if they have no business experience, there is a strong possibility they will fail and you will never get reimbursed.
What is the takeaway? It is preferable to be cautious than regretful.
2. Story of the walls of Babylon
Babylon is under siege, and the people are terrified. They keep asking the guard whether everything is going to be okay all day. The guard assures them that the walls will remain sturdy and reinforced.
Babylon survives the invasion, and Clason uses this to demonstrate the need for financial security throughout life. You never know when you’ll be attacked - whether you’ll lose your job or face unexpected medical costs.
Having a financial safety net will help you weather these difficult times and avoid sacrificing your prosperity.
What is the takeaway? We can’t afford to remain without proper defense.
3. Story of the camel trader of Babylon
Tarkad is in debt to several people when he meets Dabasir, the camel dealer to whom he owes money. Dabasir relates his story of becoming in debt as a result of his luxurious lifestyle and then becoming involved with thieves.
He was sold as a slave and educated to be a camel tender. Sira, one of his master’s wives, inquires whether he has the soul of a free man or a slave. After a while, he realizes he needs to return to his obligations, so she assists in his release.
He nearly dies after a long desert trek, but he finds his spirit and returns to Babylon, where he works hard to pay off his debts using a strict budget.
Dabasir’s path is long and arduous, but in the end, he sets things right and demonstrates that he possesses the soul of a free man.
What is the takeaway? A path may be found when there is resolve.
4. Story of the luckiest man in Babylon
Sharru Nada, a wealthy merchant prince traveling with the grandson of his departed partner, is another narrative in The Richest Man in Babylon Book. Sharru tells him how he used to be a slave since the kid has a desire for luxury goods and dislikes hard work.
He was sold into slavery when his brother murdered someone and his father was unable to pay the bond. He eventually got a job working for a baker, where he prepared additional pastries and divided the money with his boss. It was the epitome of a side business. He desired to work hard in order to reclaim his independence.
Tragically, his master lost all of his money, so Sharru was sold again and was almost sentenced to a life of hard work when his buddy and fellow slave bought him. His friend was able to accomplish so because Sharru instilled in him the value of hard effort.
What is the takeaway? In times of adversity, the hard effort may be your closest friend and help you achieve numerous goals.
If you’re still reading this, I’m guessing you’re serious about it and want to be wealthy, but don’t know-how. I had no idea either till I read this book. “Where there is resolve, a path may be found,” the lines say. What I learned from this book assisted me in developing a strategy for myself. In this overview, I’ll share part of what I’ve learned with you so that you may devise your strategy for becoming wealthy.
Pay yourself first.
You will only start making more money when you know that a portion of every dollar you make is yours to retain. You pay others for your food, clothes, power bills, rent, and a variety of other expenses, but if you want to be wealthy, you must first pay yourself. To put it another way, you should save some money. According to the book, you should save at least 10% of your salary, and more if you can. You now have two options for increasing your savings.
The first is to reduce your spending. If you start doing this, you may find it difficult to survive on 90% of your salary at first. But you’ll get used to it quickly. You may accomplish this by eliminating some needless costs. Next time you go shopping, ask yourself, “Do I need this?” Also, never take on debt; else, you will postpone your trip to prosperity for months or even years.
Increasing your salary is another method to save more money. You may enhance your earning potential by honing your talents. According to the book, if you work hard and take action, you will generate more possibilities for yourself, which is how to be lucky by working hard and doing your best. According to the book: “work, well done, does Good to the man who does it, it makes him a better man”. I also read a book called Four Agreements, which advises that no matter what you’re doing, establish an agreement with yourself that you’re going to do your best. This will make you a better guy, and more money and opportunities will come your way.
Use wealth to create wealth
Now that you’ve begun to save and have some money. You should not simply let it sit there. You should put it to use so that it can earn you even more money. This is referred to as investing. The book provides some pointers on how to accomplish this more effectively.
The first is to always seek advice. You should use caution in this situation, and only seek advice from those who are specialists in a certain area. It costs nothing to seek sensible advice from a good friend, but be cautious: advice is something that is freely given away, and you should only accept what is valuable. This is why the book recommends only seeking guidance from professionals. It is simple for novices to provide advice. People love to give advice, but you should be cautious about who you listen to.
Another essential piece of advice is to never lose money. Don’t invest in locations that appear too good to be true because, guess what, if it appears too good to be true, it usually is, and you might lose all of your money. You should want your money to be protected. A little prudence is preferable to a lot of regrets. If you invest irresponsibly, your money is all but gone. So only put your money into topics you know a lot about. For example, I do not know real estate. If I invest in real estate without understanding how it works, I would most likely lose the money I worked so hard to obtain. In addition, insurance is a great method to safeguard your money from any damage.
Another, and in my opinion most essential, tip: Invest in yourself. Spend your time and money improving your talents and abilities so that you may earn more money. Continue to study and grow. This will provide you with a significant edge over time. While the ordinary person goes home after work to watch TV and does nothing to improve himself, you may go ahead by developing yourself just a little bit each day, and you’ll quickly notice that these small pieces add up. Reading literature is, in my opinion, the finest way to invest in oneself. I’ve been reading a book every week and learning a lot from them; I’m writing these summaries to share what I’ve learned with you. I hope this encourages you to read more books since, to be honest, there is no substitute for reading.
You may agree with everything I’ve stated so far, but just to give you an idea of how this information might impact your life, let’s say you set away $20 per week. If you performed this for 50 weeks, you’d have $1,000, and you’d probably make it a habit. If you continue to do this for 40 years, you will have $40,000. That is if you simply left it there. However, if you found someone who truly understood money and handed it to them, they might make your money work for you. Then you have two options available to you.
You’re working, and just like a $20 note, you know how much money you’ll have at the end of 40 years. You will have $1,520,000 if they just get a meaningful job at a 14 percent rate, and there are many individuals around who can assist you in doing so. You’ve done nothing more than set away $20 every week. Now, if you just left your million-and-a-half sitting there for you, it will earn you between $150 and $200,000 each year while you keep your million-and-a-half. I’m sure you’ll be able to get by for a time on it. And all you’ve done is layaway $20 every week. You might become wealthy if you worked in a small position and never got promoted.
Remember the Rules of Gold
The five rules of gold are another important takeaway from The Richest Man in Babylon. Arkad established these regulations and passed them down to his son, Nomasir, who had to utilize them to prove he could forge his own way in the world.
The first rule of gold
“Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.”
Translation: Saving a portion of your salary (even if you have a modest income) aids in the accumulation of wealth.
Again, Nomasir used the approach of saving 10% of his salary, and it worked well for him.
The second rule of gold
“Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.”
Translation: When you invest your money, it multiplies, giving you more of it.
This means that we, as today’s people, should take advantage of compounding interest. This allows your principle to continue to grow while you earn interest.
The third rule of gold
“Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.”
Translation: If you need additional protection when investing your money, seek the guidance of financial professionals.
Nobody is born knowing how to manage money. It takes time, practice, and years of study. That is why, when it comes to financial assistance, you should always look for someone you can rely on.
The fourth rule of gold
“Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.”
Don’t go headfirst into an investment you don’t understand! It’s a recipe for disaster.
We already discussed real estate investing, but imagine something much easier, such as bitcoin. It only takes a few clicks to invest in this virtual money, but if you don’t comprehend the market’s ups and downs, you’re putting your money in danger.
The fifth rule of gold
“Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.”
Don’t fall prey to get-rich-quick schemes or scams. You’ll be out of money.
There are many individuals out there that want to take advantage of you, from Nigerian princes to phishing schemes. You may not know who to trust, but try to detect the characteristics of a con artist so you are not taken advantage of.
So you see, the basic mistake that most people make is thinking that if you want to be a billionaire, you have to make a lot of money. That, of course, is not the case. If you want to be a millionaire, you must first become a millionaire. To become a millionaire, all you need is a strategy. That is all you require. All you have to do is decide that you want to be a millionaire. Then you may utilize the advice in this overview to create your strategy. Best wishes.