The Richest Man in Babylon
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Foreword
Before I start the book, I just want to appreciate this book. This book is a legit goldmine. Each page contained new things to learn. It answers a lot of financial questions like how do I come out of debt, how do I become rich if I am making bare minimum money and just living from pay-check to pay-check, etc in a story telling format. This book was originally published in 1926 and contains words of old English and to convert the meaning to the modern English, I will write them inside brackets (like this) while explaining. The author in his own fascinating stories. And I too first thought, how can a book this old tell me about finances of the modern world; But this book answers that question too. He says that youth's thoughts are like meteors which shine very bright and often make sky brilliant but wisdom of the old age is like that of a star shine so unchanged that sailors may depend on them to steer their course. And if you think that money is the root of all evil and money is bad. Understand that having money can provide you a lot of things like comfort, better lifestyle, better healthcare and education, etc.
Lo, money is plentiful for those who understand the simple rules of its acquisition
Start thy purse to fattening
Control thy expenditures
Make thy gold multiply
Guard thy treasures from loss
Make of thy dwelling a profitable investment
Insure a future income
Increase thy ability to earn
A fat purse will empty itself if there is not gold stream to refill it. No matter how big the amount of money you have, it will get spend if you don't have source of earning. The reason most people have not acquired more money than bare existence is because they either haven't understood the laws of building wealth or they fail to observe them.
If you are broke and your wallet is thin, then don't worry, there are seven cures to make your wallet thick and add money to your account.
Seven Cures for a Lean Purse
1. Start Thy Purse to Fattening (Start to Make Your Purse Fat)
First and most important step of becoming wealthy is to have a source of income. This mostly is your salary or the earning of the business you do. After your salary is credited to your account, you take one-tenth of this money and save it. You don't use this part no matter what. Read this aloud "A part of all I earn is mine to keep."
2. Control Thy Expenditures (Control Your Expenditures)
Necessary expenses increases with your salary. And you need to have a strict hand to control it. If you spend all your salary or money than you earn, you will remain broke. Reduce and eliminate your expenses. And all of your expenses should come from the nine-tenth part of your money. All of your clothing, food, education should come from this nine-tenth part.
3. Make Thy Gold Multiply (Multiply your money)
Over time, the money you saved, the one-tenth of your salary, becomes a considerable amount of money. Now, it's time to use it. The money you saved is the money that helps you build your fortune. Your wealth is not the amount of money you have in your wallet or bank account, it is the income that builds itself and keeps adding more money to your account. You take you savings and invest them carefully. So that your money makes money for you.
4. Guard Thy Treasures from Loses (Guard your treasures from loses)
Once you have money with you, bad elements are attracted towards you like moths are attracted towards the light. These bad elements are thieves and tricksters. A person who beliefs in schemes that can make them rich quickly is going to be broke forever. You need to save your money from the thieves and scammers. Never invest money into something you don't know without advising people who are wise in that field. If you are going to invest in gold, take advice from jewellers and not from a chef, else you will lose your money in a bad investment.
5. Make Thy Dwelling a Profitable Investment (Make Your Home a Profitable Investment)
Author emphasises that it is important that you own the place where you live. You can take a loan for it, but own your home. Make it according to yourself. Make in such a way that it is comfortable for you, your partner and your kids. Having a place where you can be comfortable and peaceful without the fear of getting evicted is good. It lets your mind rest and make wise decisions.
6. Insure a Future Income
Having a single source of income is very dangerous because if gets stopped then you don't have any more money to keep going. If you are broke and don't have money with you then you are in more problems. Once you have established one income source, make more income sources. These sources can be the money you get from your investment(cure 3) or you start more things. For example, baking and selling cakes on weekends, selling paintings, teaching students, etc. The more sources of income you have and the better off and safer you are. You don't have to live in the constant fear of what would happen if you lose your job.
7. Increase Thy Ability to Earn (Increase Your Ability to Earn)
Over time you need to make sure your ability to earn is increasing. Once you start doing something, you gain experience and this ability increases the amount of money you can demand as your salary. Sometimes, you need to learn other skills to do the same. But over time your salary should increase. Your desire to earn wealth must be strong and definite. Start accumulating wealth, first in small sums then in larger sums. A man who seeks to learn more of his craft shall be richly rewarded.
Now that we have learned how to make your thin wallet thick. It is important that we learn the rules by which gold is governed. The laws were same during the Babylonian time, the time book was written and the present day.
Five Laws of Gold
I. Gold comes 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.
II. Gold labors diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
III. Gold clings to the protection of the cautious owner who invests it under the advice of men wise in its handling.
IV. Gold slips away from the man who invests it in business or purposes with which he is not familiar or which are not approved by those skilled in its keep.
V. Gold flees the man who would force it to impossible earning or who follows the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
Author then in one his amazing stories tells how there are certain things which a person should do if they respect themselves. Those things are:
- Pay your debts will the promptness within your power. Don't purchase what you can't pay for.
- Make a will of record proper and honourable division of his property and wealth.
- Have compassion upon those who are injured and smitten by misfortune, and aid them within reasonable limits.
Goddess of Good luck
The desire to be lucky is universal. Every person in the world wants to be lucky and wishes that they have the blessings of the Goddess of Good Luck. But only few people know that she only blesses the people who accepts opportunity. She doesn't bless slow fellow because she thinks that if a person desires to be lucky they will step quick. To be lucky, you need to take actions. If you keep waiting for the perfect opportunity, you will never get it and stay as the way you are. Good luck doesn't necessarily mean you finding a pot filled with gold. But good luck also refers to you getting a good business deal, your stock money going up, etc.
Gold Lender of The Babylon
In one of his stories, author tells the story of gold lender of the Babylon. And through him, he conveys precious lessons. Gold lender tells how it is easy to lend gold, but if it was lent unwisely, it is difficult to get it back. So, it is important to lend your money carefully, be it your best friend or an unknown person.
"What your labor earns for thee and what is given thee for reward is thine own and no man can put an obligation upon thee to part with it unless it do be thy wish." - Gold Lender
The money you earn from the work you do is yours only. Whatever money you are given as a reward for your work is yours. And you are under no obligation to give it anyone unless you want to give it to them. No one can come to you and force you to give them money if you don't want to just because they know you or you are their relative.
Lend money in such a way that the money you give earns more money for you. Somewhat similar to what bank do. Putting interest on the money they loan.
Camel Trader of Babylon
This is perhaps the most inspiring story of the book. (Fun fact: The proves of this story were found engraved on clay tablets when excavating ruins of Babylon.) This is the story of one of the richest man of the Babylon. He tells how even after coming from a family with moderate amount of money, he got into a lot of debt. When he couldn't repay the debts of the people, they would taunt him and because of this he ran away from Babylon. In an attempt to gain quick money, he became a robber and robbed the caravans traveling from one kingdom to other. But his bad luck struck again and he was captured by a chief's guard when he was robbing one caravan and was used as a slave. But since he wanted to be a free man, he escaped the slavery and returned to Babylon. Started working as a camel tender and eventually camel trader. And over time he was able to give away all the debt.
How to Repay All Your Debts
One-tenth of you salary is saved. Another one-tenth of your salary is used to repay all the debts. You distribute all this one-tenth equally so that you repay this debt together. All your expenditure comes from eight-tenth of your salary.
Quotes
1. If a man be lucky, there is no foretelling the possible extent of his good fortune. pitch him into the Euphrates and like as not he will swim out with a pearl in his hand. - Babylonian proverb
2. We mortals are changable. alas, I must say we are more apt to change our minds when right than wrong.
3. The spirit of procrastination is within all men. We desire riches; yet how often when opportunity doth appear before us, that spirit of procrastination from within doth urges various delays in our acceptance. In listening to it we do become our worst enemies.
4. No man willingly permits the thief to rob his bins of grains.
5. To attract good luck to oneself, it is necessary to take advantages of opportunities.
men of action are favoured by the goddess of good luck.
6. Gold is reserved for those who know its laws and abide by them.
7. Better a little caution than a great regret
8. Wealth is power. With wealth many things are possible