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 essential and yet very powerful when it comes to setting financial life in order. Wherever you are in terms of finances, like being 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 draw a road map and take one’s finances in control. Even a seasoned investor can learn something 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, a compilation of informational pamphlets about being thrifty and achieving financial success.
He started writing these pamphlets using the parables 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
- The story, especially of debt, is nicely narrated, and the Author strongly recommends readers stay away from it. Encouraging people to spend what they earn and realize how free one can be without debt.
- The book recommends paying off debt at the earliest with a practical plan anyone can put into practice, get out of debt, and start investing surplus that one keeps aside from income to build financial stability.
- I have learned from this book and my own experience that one’s financial health depends more on how we spend what we earn than how much we make.
- Stories in the book inspire one to ask correct questions about finances as to where the earned money is going. Are we spending on the right things? Are we defining needs and wants appropriately?
- Are we stuck in a vicious circle of earning and spending with nothing left to save and invest in making our lives better than they are? What we seek is what we get if one constantly strives for existence; that is what he gets.
Helpful Money Tips From The Book –
- Pay yourself first. Take out 10% of income. If you can’t do that, start with any amount or percentage, as developing habits is more important than the sum.
- Protect your capital at any cost while investing. A lower return with safe money is much better than high returns with the 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 the idea of dividing income into three parts. 10% to pay oneself first, 70% for household expenses, and 20% for paying off debt.
I have also created a video of a few quotes from the book – I hope you like it. Please subscribe to my YouTube channel – Myread4change.
It is essential to learn how money works; we are either in control or controlled by it. As the book mentions, “Our acts can be no wiser than our thoughts. Our thinking can be no wiser than our understanding”.
I highly recommend this book to everyone who feels money is essential and is stuck with a part like where to begin. I want to caution that every idea mentioned in the book requires work, patience, and belief that it can be done and that you deserve a better life.
If you like this book, you will also like The Automatic Millionaire.
Please share your suggestions/feedback about this article or have any questions about the book in the comment section, and I will gladly respond.
I wish you a Financially abundant life.