"Reading a good book is like taking a journey."
Ever believed in this? Well, there are a lot of books that take us through the journeys of fictional characters, or they bring the lives of great people to us. But some books are individual beyond just imagination. They take us through the journey of life. And 'The Richest Man of Babylon' written by George S. Clason is one of its kind, in the vast collection of books that can change one's life.
Author: George S. Clason
Here's why 'The Richest Man in Babylon' is one of a kind.
'The Richest man of Babylon' starts with two men - a chariot builder and a musician, who are also friends - mirror on wherever their operating lives have taken them. Although happy to possess wives and young families, they struggle to form ends meet and surprise if there can be in a different way. The talk turns to a person they grew up with, currently thought of to be the richest man in Babylon. His name is Arkad, and that they resolve to travel and see their ex and request his recommendation. His recent friends ask Arkad about how fate has come back to form him wealthy. He right away rebukes them for presumptuous that 'fate' has contributed something to his success, telling them that they need solely remained weak, "because you have got either didn't learn the laws that govern the building of wealth; instead you are doing not observe them."
While still a boy, Arkad had detected that wealth, if it didn't indeed produce happiness, definitely increased the standard of life. One may furnish a house well, wear a sensible covering, build temples for the Gods, sail the seas, or eat exotic food from distant lands. He resolved that his heap wouldn't be that of the have-not, that he would build himself "a guest at the banquet of fine things."
With no inheritance thanks to him he completes he would place effort and study into the ways that of wealth. He started employment as a scribe, toiling lengthy and .onerous writing laws and alternative things onto clay tablets. One day, reciprocally for a very tough task on that he had to figure through the night, Arkad asked the shopper, a cash investor, if he would teach him a number of the secrets of cash.
The man in agreement, and within the morning disclosed this principle: "a part of all you earn should be yours to keep." Arkad felt a touch short-changed at this, for he thought it to be self-evident - wasn't all you attained 'yours to keep'? Living expenses quickly eat up no matter you earn, the cash investor discovered, which implies you become a slave to your work and deserve to survive. However, by putt aside a minimum of 10 percent of your earnings and marking it off as "not for expenditure," over time this quantity builds and starts earning cash for you, while not you have to try to do any work. It matters very little what proportion you begin with, as long as you observe the rule to pay yourself initial out of no matter you earn. You'll shortly not even notice the absence of this touch.
After some setbacks, Arkad's savings grew into a satisfying quantity. This happy the silver spoon investor to the extent that he asked the young man to run a part of his massive estate. Later he shared in its profits. The lesson: people who understand the laws of cash request one another out. Whereas several pay pretense to money principles, the principles ne'er work for them as a result of they are doing not take action.
The cash lenders' recommendation isn't that of a penny-pincher. He counsels Arkad to relish life and not strain to save lots of an excessive amount of, on as he's frequently increasing his pot of saved cash.
This sounds like a regular storyline. But there's more to it. Author George S. Clason displayed his life learnings through Arkad, without boring the audience. Another surprising fact is that this book was set out in 1927, before the first world war. But this book applies to anyone at any point of time and has been, from the past to future. Even today, this book is well known and reputed because the principles that were mentioned in this book were priceless, and they can never be changed.
The book summarised to a lot of learnings, but it sums up to seven principles in life to become wise and wealthy at the same time, which usually doesn't happen. George states that there are seven principles in life to become filthy rich.
1. Start thy purse to fattening:
Coming from an ancient book, this book begins with Shakespearean language. Arkad, being the richest man in the prosperous country Babylon, asks just one question: What if you get ten coins every day, and spend 9 of them? It's a simple question, but it makes the readers think. Author Clason says, to build an excellent wealth every day, save ten percent of your income. To be even precise, the author asks the readers to be organized about their income and savings, to divide them into perfect proportions to keep one's wealth consistent. He adds that 60% of one's income should be spent on necessary living expenses while the other 40% is to be divided into four quarters, which should be spent on paying one's self, paying debts, saving for the future and charity each.
2. Control thy expenditures:
We all get influenced and manipulated by others in all ways of living. The author, however, says it's not wrong, but everyone needs to control their lifestyle desires to keep a consistent flow of money in their lives. Desire and expense are two different things, but the thread that holds the difference is fragile, but one needs to walk carefully on the ribbon. Else, it is easy to fall into financial troubles. Clason asks readers to learn to live with one's means and avoid lifestyle inflation. To become rich one day, one should spend less than how much he/ she earns. This might feel like an old-school saying, but this is usually the primary step to become prosperous and financially stable. It is simple, "either spend less or earn more."
3. Make thy gold multiply:
Investments are essential in having a permanent bank account. This is because investments help double the money one earns smartly. With time and interests, investments can help in significant savings in inefficient ways. Once a person begins to make up some savings, investing that cash is vital as it'll build extra money for him/her. Another pretty clear point; if one starts saving cash, it shouldn't quietly sit in an exceeding pad. Even a high-yield bank account is far higher than that, and it will double one's principle concerning fifteen years. However, investing in things that one isn't aware of is the wrong choice, as it can sometimes cause loses. Emergency funds are just another name for savings, but according to George S. Clason, investments are a better efficient way to save money and during economic downturns.
4. Guard thy treasures against loss:
Without a safe principle, investing is pointless. In simple words, one should protect his money from loses. Risk increases with loses. For example, if one is spending money in a car or a bike, he has to make sure that it comes with the right papers and insurance. While lending money to someone, one should be careful with the collaterals on which the loan is based on. As arkad says, it is essential to consult with wise men before investing, and securing the advice of the experienced. "It costs nothing to ask a good friend for counsel." Guarding one's wealth should result in a variety of insurance policies and income protection. Attempts are easy, but they should be wise and shouldn't be occurring in any undeserved trouble from before.
5. Make of thy dwelling a profitable investment:
The fourth principle of Author George is quite simple: Own a home. A lot of people do not own homes, and they prefer to rent. This could be because of financial issues, but this principle states that One ought to own their house instead of the rental as a result of that cash will be invested with within the home or invested within alternative things instead of bimanual over to the owner. Real estate is risky, yes. But living below our means is essential. One should buy a home which is less than his expense, but that can comfort him in the way it needs to. Real estate inflation only effects in one growing higher; however, the mortgage payments are fixed, for the next thirty years. This principle turns out to be a total win.
6. Ensure a future income:
Everybody has retirement plans, but we all need to have strong ones. With age, our experience grows too, but the ambitions, health, and patience degrade with an increase of age. Hence, it is essential to save for the future to avoid any risks. George states that, if one is not clear about his future, there is no point in earning now. He also says that we all need to think of the day we have to stop working physically. Even without physical strain, one should be able to secure the day of his retirement financially. In alternative words, invest for retirement, and one's family's well when he is passing. One must be dropping some Hamiltons right into one's retirement savings account if one wants to afford it presumably. One should be able to create safety through investment for the future.
7. Improve thy ability to earn:
This is the most stringent principle of all, a majority of the people settle with the knowledge that they have. But with being open to learning, and trying to improve every day, one can earn more. One should be available to opportunities and should be able to put the right efforts into improving themselves. This could be a hard task, as this process involves taking other jobs, classes, and different ways to keep improving continually. Increasing knowledge was robust at the time that the author wrote the book, but thanks to the internet, we have everything at our fingertips now. Learning leads to working better, which earns in higher jobs, which then results in better salary, which is the whole point of the book.
With this, the author also proposed five laws of gold.
1. 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: one should put away 10% of his income for savings.
2. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field: money doubles with the right investment.
3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling: Being careful about investments is extremely important.
4. 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: invest in things you understand, or it all ends up in loses.
5. 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 inexperience and romantic desires in investment: staying away from scams and being careful are also the main steps to being successful financially.
Along with these seven brilliant rules and these five laws of gold, Author Clason also gives the readers other valuable lessons. He says that as necessary it is to save money, one should also enjoy the wellness of it, and fulfill his dreams, while also keeping the future safe and secure. Keeping a track on one's wealth is essential too, which means, one should always be conscious about where his money is coming from and where his money is going steadily. However, one shouldn't let greed take over one's judgment. Desire shouldn't influence one's decisions of life and investment.
This all sums up to one thing: this book is the handy guide to becoming rich, with efforts as well. George S. Clason was a brilliant author, and he created a manual for being wealthy.