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."