Title The Richest Man in Babylon

Author George S. Clason

Year Published 1926

Kind of Book Personal finance

How strongly I recommend it 6/10 

My Impressions This is a story written to demonstrate principles that will bring a person wealth if followed. It didn't resonate with me as much as other books on the subject, but contains important advice on money management nonetheless.

Date Read July 2019

Practical Takeaways

  • Aim at what you hope to get

  • Find out what you don't know

  • Listen to the elder's wisdom

  • Decide that part of all you earn is yours to keep

  • Keep for yourself 1/10th of all you earn (it can be more, but no less)

  • Don't trust the knowledge of a bricklayer when it comes to jewels (ie. Only listen to advice from people about the thing they are specialized in)

  • Only take advice that is worth having

  • Take advice from people who are experienced in such matters

  • Don't squander money made through your assets

  • Learn to live on less than you earn

  • Seek advice from those who are competent through their own experiences to give it

  • Be prepared for opportunities when they arise

  • Do the tasks you say you'll do (no matter how small), so you can have confidence in yourself to do important things

  • Only start tasks you are willing to complete

  • Don't miss a day. (Don't think that you can make up a missed day by doing twice as much the next day) ("If on the seventh day I passed by without remembering, I would not say to myself, 'Tomorrow I will cast two pebbles which will do as well.' Instead, I would retrace my steps and cast the pebble.")pg24

  • Each morning when you first arise and each night before you go to bed say to yourself "A part of all I earn is mine to keep"

  • Seek the advice of men whose daily work is handling money

  • "Enjoy life while you are here. Do not overstrain or try to save too much. If 1/10th of all you earn is as much as you can comfortably keep, be content to keep this portion. Live otherwise according to your income and let not yourself get niggardly and afraid to spend."

  • Start thy purse to fattening

  • Control thy expenditures

  • Don't confuse necessary expenses with desires

  • When looking at all the money you spent in one month, make a list of necessities and a list of luxuries

  • Study thoughtfully thy accustomed habits of living

  • Let thy motto be 100% of appreciated value demanded for each coin spent

  • Manage whatever money you have. Don't wait until you make lots of money to learn how to manage it

  • Make sure the person you loan money to has a reputation for repaying debts

  • Study carefully before parting with thy treasure

  • Own thy own home

  • Save money for retirement

  • Save money for your family after you die

  • Make preparations for your family in the event that you die

  • Step in quick when opportunity comes

  • "If you desire to help thy friend, do so in a way that will not bring thy friend's burdens upon thyself."pg105

  • Be weary of get-rich-quick schemes

  • Always have insurance, savings accounts, and dependable investments

  • Treat work like a friend. Make yourself like it

Big Ideas

  • Opportunity + preparedness=success

  • Opportunity alone is not enough to lead to success. (A person must be prepared when their big shot comes

  • Abundance begets more abundance

  • Scarcity begets more scarcity

  • You must prove you can handle what you have before the universe gives you more

  • A man's wealth consists of his income and assets (not just what he already has)

 

Memorable Quotes

"him whose purse is empty does gold avoid."