The Richest Man in Babylon by George S. Clason was first published in 1926 and is considered a classic on personal finance and wealth creation. I read this book a decade back but in a hurry. But this time, I read it with purpose to learn from it and implement its learnings. Following are the lessons I would like to share with my friends.
- Wealth, like a tree, grows from a tiny seed. The first coin you save is the seed from which your tree of wealth will grow.
- Always seek advice from experts. You cannot seek advice of brick-maker if you want to invest in jewels. Want to create wealth? Seek advice from those who created wealth.
- Train yourself to live upon less than you could earn.
- Pay yourself first. Set aside at least 10% of what you earn and THAT IS YOURS. Invest it wisely and re-invest the dividends/profit so that it keeps on growing.
- Great desire for wealth is the only per-requisite to build wealth.
- “Necessary Expenses” will always grow to equal your income unless you protest by saving first.
- Your wealth multiplies not by just saving rather by investing and re-investing. Let each coin you save work for you while you are sleeping.
- The first principle of investment is the security of your principal. Don’t be misled by your romantic desires to make wealth overnight. Run away from schemers and tricksters who promise to double your wealth overnight.
- Own thy own home.
- Provide in advance for the needs of your growing age and protection of your family.
- Increase your ability and skills. That is the best investment.
- How to be lucky? Stay prepared. When opportunity comes, grab it.
- Always invest in trades of your competence. Don’t be lured in by sellers of dreams. Before investing, ask a question. Do I know about this industry?
- A man who does not create wealth is not loyal to his family and state.
- Pay your debts at the earliest for long term prosperity.
You may download The Richest Man in Babylon clicking on this link. https://app.box.com/shared/4zi0qjkqb9
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