About The Author
George Clason was born in the United States in Louisiana.
He started writing in 1926 about financial tips and he summed them up into small articles of parables based on how the Babylons lived.
These articles were combined together and made to make this novel The Richest Man In Babylon.
Story Line Of The Book
This book tells many stories set in the Babylon times.
Babylon was a powerful and very wealthy city.
The people in that city knew how to build wealth and they passed on these tips to their children.
The people in that city knew how to achieve financial independence through wise investment and savings.
The book explains all the basic principals about money that everyone needs to know.
6 Financial Tips From The Richest Man In Babylon
1. Saving Money
This book emphasises the importance of saving money.
Saving money each time you get paid is the first step of building wealthy, without applying this financial knowledge it’s difficult to build wealth.
Pay yourself first is making sure that you save money at least 1/10th or even more if you can afford each time you get paid.
Here is my favourite quote about saving money from The Richest Man In Babylon.
A part of all you earn is yours to keep.
It should be not less than a tenth no matter how little you earn.
It can be as much more as you can afford.
2. Budgeting Money
Budgeting is all about allocating your many to places where it will work for you.
Budgeting helps you to take control your money much better as you will know where your money is going.
Spending less money than you earn is a very important financial principal.
Accessing and evaluating your necessary expenses and unnecessary expenses is the key to managing your budget.
Here is my favourite quote about budgeting from The Richest Man In Babylon.
Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay for thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenth of thy earnings.
3. Invest Your Savings
Once you save money you need to find ways to grow your savings.
Investing your money in a high-interest account or using your saving to start a business are some of the suggestions that the author points out in this book.
Here are my favourite quotes about investing your money from The Richest Man In Babylon.
If you would become wealthy, then what you save must earn, and its children must earn, that all may help to give to you the abundance you crave.
Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow. The sooner you plant that seed the sooner shall the tree grow. And the more faithfully you nourish and water that tree with consistent savings, the sooner may you bask in contentment beneath its shade.
4. Build More Income Streams
Relying on just one source of income is not a good idea.
For example, if you rely on your job for your income alone what happens when you lose that job?
In order to build wealth, you should find ways to make more than one income.
Here is my favourite quote about having more income streams from The Richest Man In Babylon.
A fat purse quickly empties if there is no golden stream to refill it. You must have different streams of income that will fill your purse.
5. Paying Your Debts
This book discourages the accumulation of debt, it suggests that one should make it a priority to clear their debt as soon as possible whilst saving money at the same time.
Which answer the question which money people worry about:
Should one pay debt first and then save money after clearing the debt or should one save money first and then clear the debt later?
The author points out that when you have debt you should pay your debts as well as save money for yourself.
6. Invest In Your Education
Knowlege if the key to financial freedom.
If you want to build wealth you have to be willing to learn from other people who have been successful in this field.
Seek advice from the right people.
You would not go to a bricklayer and ask him or her about how to start a business, would you?
Read books, read blogs, read magazines that resonates with what you are interested in, there you will find your answers.
The knowledge you get will help you to open your eyes and see things differently such that you will be equipped with information that you need to build wealth.
Here is my favourite quote about educating yourself from The Richest Man In Babylon.
“Learning was of two kinds: the one being the things we learned and knew, and the other being the training that taught us how to find out what we did not know?”
7. Save For Retirement
Saving your retirement is something that everyone should consider because you will have income when you are old and can no longer working.
Here is my favourite quote about retirement from The Richest Man In Babylon.
No man can afford not to insure a treasure for his old age and the protection of his family no matter how prosperous his business and his investments may be.
This book was written in the 1920s but the financial tips in this book can be easily applied today.
The author puts it this way
The sun that that shines today is the sun that shone when thy father was born, and will still be shinning whey thy las grandchild shall pass into the darkness
I wish I had read this book in my twenties and applied some of the advice in this book, anywhere one can never be too old to learn something from this book and apply it in their management of money.
It’s a book I will surely treasure and give to my three children when they are old enough to understand about money.
This book is for anyone who wants to learn about money and how to build wealth. If you want the knowledge on building wealthy that this book if for you.
Get this book here.
Over to you…
Which books are you reading?
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