“Pay yourself first…”
This was one of the important lessons learned from the richness of ancient Babylonians.
In his book ‘The Richest Man In Babylon’, George S. Clason has shared the unchanging rules of acquiring wealth and growing richer.
The author has studied the historical accounts of hundreds of clay tablets (writing on moist clay and then baking it to make it like hard tiles) used some 8000 years ago when Babylon was flourishing, for writing history & legends of that time, poetry, transcriptions of royal decrees, the laws of the land, titles to property, promissory notes, and even personal letters like the way we use papers in current times.
The book is an absolute delight to read and the author beautifully highlights the age-old quest to acquire wealth. It is a collection of a few stories answering the various challenges, faced while growing richer.
The first rule is to save money every month which should be at least 10% of total monthly income. One should cut down expenses if he is unable to do so.
The second rule is to invest these savings in such instruments where the interest is reinvested without risking the principal amount. So, in a sense, that will let the compounding effect take place.
The next rule mentioned in the book is to pay the debt in a timely fashion from the remaining amount, by planning it meticulously. This also includes restructuring the debt, renegotiating the terms with the lenders, and facing them with confidence and integrity. So while a portion of income is growing, the other one is being utilized to pay the debt (In those times, unpaid debt was an invitation to slavery).
The amount left in one’s monthly income after paying to self (i.e. saving and investing) and paying off debt, should be spent wisely on the welfare of family members. This will bring happiness to the home and ensure the well-being of loved ones.
The last rule is to keep upskilling and finding ways to increase income. This rule ensures that the savings will increase in the future (& so in return, are the investments) and the debt will be paid off faster.
I loved the exchange of dialogues among various characters & found them quite similar to the situations in todays’ times.
I suggest that this book should be included in the school curriculum to instill financial wisdom among our children. This book is a must-read for all those, who are looking for simple rules to follow to grow rich.
Thanks to late George Samuel Clason for this wonderful book.
#finanicalplanning #financialmanagement #therichestmanofbabylon #georgeclason #investing
Categories: Business/ StartUp, Fiction, Finance, Parenting
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