Book – The Richest Man in Babylon (Review)
Author – George S. Clason
Genre – Self Help
Published Year– 1926
There are as many beliefs about money as there are people. While many claim money can’t buy happiness, it certainly improves the quality of life.
This book is basic and yet very powerful when it comes to setting financial life in order. Wherever you are in life in terms of finances like loaded with consumer debt, spending more than earning, not able to save anything, not sure how to invest and in what proportion to start, or doesn’t know where salary goes.
This book will help in drawing a road map and take one’s finances in control. Even a seasoned investor can learn a thing or two from this classic book.
About The Author –
Image Credit – MediumGeorge S. Clason was an American Author. He was best known for his book The Richest Man in Babylon, which was a compilation of informational pamphlets about being thrifty and how to achieve financial success.
He started writing these pamphlets using the parables that were set in ancient Babylon. He was credited with coming up with the term “Pay yourself first”.
About the Book –
This book published almost 100 years ago in 1926 teaches the basics of money through engaging parables, making it easy to read. As much as it feels like stories while reading many lines and lessons, one will find nodding self in the same situation or at least know people in that situation.
Few Great Points Made Through Stories
- Story especially of debt is nicely narrated and the Author strongly recommend readers staying away from it. Encouraging people to spend from what one earns and realize how free one can fill without debt.
- The book recommends paying off debt at the earliest with practical plan anyone can put in practice and get out of debt and start investing surplus that one keeps aside from income to build financial stability.
- What I have learned from this book and with my own experience that one’s financial health depend more on how we spend what we earn rather than how much one earn.
- Stories in the book inspires one to ask correct questions of finances as to where the earned money going? Are we spending on the right things? Are we defining needs and wants appropriately?
- Are we stuck in vicious circle of earning and spending with nothing left to save and invest for making our lives better than existing? What we seek is what we get. If one is constantly striving for existence that is what is he gets.
Useful Money Tips From The Book –
- Pay yourself first. Take out 10% from income. If you can’t do that currently, start with any amount or percentage as developing habit is more important than the sum.
- Protect your capital at any cost while investing. Having little lower return with safe capital is much better than high returns with risk of losing capital.
- Be cautious while taking advice about investing as they say “Advice is one thing that is freely given away but watch that you take only what is worth having.
- One may adopt idea of dividing income in three parts. 10% to pay oneself first, 70% for household expense and 20% for paying off debt.
I have also created a video of a few quotes from the book – Hope you like it. Please do subscribe to my Youtube channel – Myread4change
Conclusion –
It is very important to learn how money works and we are either in control or controlled by it. As it is mentioned in the book “Our acts can be no wiser than our thoughts. Our thinking can be no wiser than our understanding”.
Highly recommend this book to everyone who feels money is important and is stuck with how a part like where to begin. I do want to caution though every idea mentioned in the book requires work, patience, and belief that it can be done and you deserve a better life.
You may download a free e-book online. If you like this book, you will also like The Automatic Millionaire.
Please share your suggestion/feedback about this article or have any questions about the book in the comment section and I will gladly respond.
Wish you a Financially abundant life.
Muzammil