“Money is plentiful for those who understand the simple laws which govern its acquisition”
The richest man in Babylon is a timeless classic on how to build personal wealth. I stumbled upon this book 3 years ago, when I was at a point in my life where I really needed to work on my personal finances. This book gave me a starting point on my financial journey and 3 years later I am still using the principles that I learned from this book. I am not yet where I want to be financially but I’m definitely not where I was 3 years ago. Here are the 7 lessons that I learned from The richest man in Babylon.
- Seek Advice
Seek advice and wisdom from those who have achieved that which you want to achieve (this lesson applies to everything in life not just finances). If you are struggling financially, find someone who’s achieved wealth, ask how they did it and how you can also achieve what they’ve achieved. If you don’t personally know someone, that’s okay, we live in the digital age where you can find anything online. You can find books, videos, podcasts or even seminars where people teach others how to build wealth. If you want to make a change badly enough you will find a way to make it happen.
2. A part of all you earn is yours to keep
You should save at least 10% of your income no matter how little you earn. If you feel like you can’t save that much, look at your expenses separate your necessities and your desires. This will be hard but you have to ask yourself, would you rather have short term pleasures that you will forget about quickly or would you rather have long term pleasure which will be more substantial and more gratifying ? Also before you spend you should remember that when you are spending and buying things without saving first, you are paying everyone but yourself. You are working to pay for everyone’s retirement except your own. So live within your means and save at least 10% of your income. If you can’t, save as little as you can.
3. Make your money work for you
Invest the money that you save so that it can make you more money. Don’t be quick to spend the money that you get from your investment, use that money to reinvest so that you can build a stream of wealth
4. Invest wisely
Invest wisely don’t fall for get rich fast schemes. Take advice from people with experience in that particular area of investment.
5. Buy your home
Your house is your biggest expense, so if you can, you should aim to buy your home.
6. Get life insurance – protect your family
As a mum, I think that this is really important. We don’t like to think about death, but the reality is that we’re all going to die someday. So protect your family and get life insurance so that the day you pass, they will have some income.
7. Invest in yourself
You are your biggest asset. Invest in yourself by developing your skills so that you can increase your earning potential. Attend courses, go to networking events, do whatever you need to do to be the best at what you do.
I hope you found these lessons useful, comment down below which one of the lessons is your favorite. Will you be reading the book ?