![]() ![]() The book focuses on protecting your principal capital from any kind of loss. You should start by making small but smart investments and take advantage of things like compound interest to their maximum effect. Money that is just sitting in the bank and not making you extra cash is essentially being wasted. Chances are you don’t really need whatever new thing you want to buy.Īnother key lesson from this book revolves around using your existing currency to make you more money. Avoid letting your mind tempt you into spending more money just because you can. In the modern context, this means avoiding lifestyle inflation when you get a raise and continuing to live within your means no matter how much money you make. The second primary lesson revolves around controlling how much you spend. This will start you well on your way to saving a significant amount of money. The recommendation means you should save about 10% of all the income you earn, even if you are paying off debt. In essence, this means that you should pay yourself first. ![]() The first of these is arguably the book’s central point – “start thy purse to fattening”. A 3 Minute Summary of the 15 Core LessonsĪccording to the book, Arkad, the richest man in Babylon, shares seven major points that both individuals and general society can use to improve their financial growth and success. It provides financial advice through the lens of parables that are set in the ancient city of Babylon, which originally stood around 8000 years ago. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.The Richest Man in Babylon is a 1926 book by George S. His top investment tools include Wealthsimple and Questrade. His writing has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, Credit Canada, MSN Money, National Post, CIBC, and many other personal finance publications. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. I consider the book to be Investing 101.Įnoch Omololu is a personal finance expert and a veterinarian. Your children, spouse, and friends should read it. ![]() If you have not read or do not have a copy of The Richest Man in Babylon, get one here. When you have something worthwhile to give to others, wealth will seek you out. I believe that the greatest investment you can ever make is an investment in yourself. Increase thy ability to earn: Invest in your self! Increase your knowledge and sphere of influence. Ensure a future income: Let the power of compounding interest work for you. Before you commit to buying a home, do your homework well and ensure you take care of your investment afterward.Ħ. Make of thy dwelling a profitable investment: A home is easily one of the bigger investments of the average investor/homeowner. Where appropriate, use insurance for additional protection from loss.ĥ. Guard thy treasures against loss: Diversify your investment portfolio to drastically reduce the probability of total loss. Put your money to work in a well defined and diversified portfolio.Ĥ. Make thy gold multiply: Put your money to work and earn returns! After you have put that emergency fund aside, the next step is to research and plan your investing strategy. Control thy expenditures: Live below your means! This is crucial advice to a society so in love with debt so much so that consumer debt has reached levels never seen before.ģ. Start thy purse to fattening: Pay yourself first! Try and set aside 10% of your income for savings and investment.Ģ. ![]() Some of Clason’s basic principles for acquiring money include:ġ. The simplicity of Clason in narrating great financial truths in parable format make this a timeless piece – for the newbie as well as the experienced investor. This book has impacted millions of people, including myself, for 90 years. It’s a classic, littered with nuggets of wisdom on financial planning, thrift, wealth acquisition, wealth maintenance, and wealth multiplication. Reading through the many parables contained within the book, the writing style reminded me of the Bible. It was one of the first books I read in my pursuit of financial literacy and empowerment. I stumbled upon “ The Richest Man in Babylon” by George Clason more than a decade ago. ![]()
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