Welcome to another insightful 9jaCashFlow book review! Today’s spotlight is “The Richest Man in Babylon” by George Clason. This book has been a cornerstone in the world of financial literature for decades. It unveils timeless principles of wealth management through parables set in ancient Babylon. Clason delivers key financial lessons that remain relevant today.
Here are 10 major lessons I learned from the famous Finance book, “The Richest Man in Babylon.” This is my 3rd time reading it, and I think it’s important to share these lessons here with the readers of my blog.
- Pay yourself first, no matter your worth, and manage the rest for feeding and giving to Gods/poor. Don’t use the money to buy shining objects. Watch your expenditure regularly and ensure that you live off less than you earn.
- Only seek advice from the wise. Money advice from wealthy people, relationship advice from relationship experts, etc.
- Don’t eat your investment. Let them keep growing. Let the interest keep generating interest.
- Partner and work with people of value. Let your desire for success and hard work be proof that successful people need to work with you.
- You must complete everything you start. Don’t give up in the face of challenges. Keep going and see things through. Luck favors those who take action and keep moving. Do what you say and keep your promise.
- Have a positive affirmation about money and keep saying it in the morning, afternoon, and night every single day. Mine is that I’m so happy and grateful that money comes to me via multiple sources of income. Say it regularly till it comes into fruition and becomes a daily habit.
- Understand that soon you too will be old, and you need to start putting money aside and invest it with caution where you will not easily lose it to unwise rate of returns. Such investment leads to loss and remorse.
- Set money aside so that your family would not lack should God call you soon. Make sure you set small regular payments and not wait until you can make large payments.
- Seek the counsel of wise men and let them save you from loss. A small return is far better than risk.
- Enjoy life while you’re here. Don’t force yourself to save too much that you can’t follow through and don’t be afraid to spend. The truth is always simple, not hard.
The 9 cures to not having money or having a lean pocket are for those who currently don’t have any money or have little money.
- Offer something of value in a business or job in exchange for money and don’t spend all the money you get. Only spend a maximum of 9 out of 10. Always keep a minimum of 1. Money attracts more money/gold. No money attracts no money.
- Control your expenditure. Expenses will always grow to meet income, so avoid commensurate spending where expenses always grow to meet income. Let others behave that way, but you control your expenses and live below your means.
- Watch your spending habits, and your motto should be that each coin you earn should earn 100% more coin. Put on paper everything you want to spend money on. Choose those that are necessary and within the 9/10 of your income. Cross out the rest with no regret. Understand they can’t be satisfied now.
- Stick to your budget and don’t spend from the one-tenth savings. Your budget shows the leak in your purse and enables you to stop them and control your spending. Budgeting helps you have money to pay for necessities, enjoyment without spending more than 9/10 of your money.
- Make your gold multiply, and let it keep multiplying without you touching it.
- Guard your treasures from loss. Security of your principal is the most important thing when investing or growing your money, not the return itself. Before you borrow people money, ensure that they can pay back in the future and check their credibility and behavior. Otherwise, it’s a gift. Before you make an investment, ensure that you consider all the ways that things could go wrong and then look for how to mitigate it or stop the investment. Once your purse is filled, prevent it from being emptied. Seek the guidance of wise men or mentors who know how to invest or do a particular business before you invest. Invest where it’s safe and offers a good return. Let your wisdom protect your money.
- Make a profitable investment from the remaining nine-tenths. Own the roof that shelters you and a farm to grow food. Own your own home. This is the 5th cure.
- Provide in advance for the needs of thy growing age and the protection of thy family.
- Cultivate your own powers. To continuously improve your skills, study, become wiser. To do that is to respect yourself and build confidence in yourself.
Follow these 7 principles, make/grow your money, and then teach it to others.
I hope this article has shared insight into the in-depth financial knowledge and prowess contained in the book “The Richest Man in Babylon.”
Now, go and use the 10 major lessons on how to manage your money and the 7 cures to a lean pocket in your daily work and business.
Feel free to share this article with your loved ones, and if time permits, read the book yourself.
All the best and bye for now.
