In the Richest Man In Babylon, you will find to-the-point lessons to increase your wealth. The book started off as a series of pamphlets that were originally given out to the public by banks. Then in 1926, they were combined to create the book that so many people know today. This book promises to give you financial principles that will lead you away from being broke to being rich. But does it really hold the formula for personal wealth? I think so!
Many people believe that it just gives information that other financial books clearly give, but with a fancier title. This is kind of true, but still – the book can help you understand your finances better and teach you how to create wealth. In fact, many people say that it has opened their eyes to their finances and how they view them.
It may have been written by a man who was born in 1874, but the information was true then and is just as true now. Plus, it gives you the information in an easy-to-understand manner, unlike a lot of other financial books on the market.
Whether you want to read the entire thing or not, you can benefit from a few of the key principles he talks about in the book. Following are some insights that everyone who has read the book takes away from it. They are guaranteed to benefit you too.
1. When You Have Money In The Bank, You Can Really Enjoy Life
“Money makes possible the enjoyment of the best the earth affords.”
This is the mindset you should move forward with. It is the mindset that will help you build the type of wealth that you truly deserve. Wanting to be wealthy doesn’t make you greedy. It doesn’t make you focused on the wrong things. Money really is the way to enjoy the best of everything life has to offer you.
– When you have money, you can go on vacation and see your best friend or family.
– When you have money, you can afford the first class seat and not have to spend four hours with no personal space.
– When you have money, you can buy someone something that will make them extremely happy and bring you closer together.
– When you have money, you can help out the needy and make a difference in people’s lives.
– When you have money, you don’t have to worry so much, and you can just sit back and enjoy all the things that life has to bring you.
Money does all that and more, and you should want to bring in money to your life.
I once took a course called Unlimited Abundance, and it involved working through limiting beliefs you had about yourself and money. Money being evil was definitely one of the biggest beliefs people had, thanks to society and influence. Most of us grew up thinking that being rich is a bad thing! It’s not unless you make it a bad thing.
If you have a negative belief around money, then the Richest Man In Babylon makes it clear: money is a good thing, not a bad thing.
2. Save Some Of Your Money And Then Use It To Grow Your Wealth
As the richest man in Babylon named Arkad talks about how he became so wealthy, he mentions a man named Algamish who reveals a simple secret to becoming wealthy: save some of your money.
Do you save? For most of us, when we get our paycheck, we pay everyone but ourselves. We pay the store that sells clothes. We pay the grocery store. We pay our bills. As Algamish says, we pay everyone but ourselves, and we labor for others! Think about that. All the money you get paid goes towards paying others, not yourself. Yes, it can bring some new clothes into your life, but it doesn’t put money in the bank. And if you want to be wealthier, then you need more money in the bank!
To save means you will have to live on less than you earn. Ask most people and they will tell you that when they start saving instead of spending, they don’t really miss out on much at all. Yes, you may not get to go out for those fancy dinners anymore, but you can make them at home!
How much should you save? You have probably heard that you should keep ten percent of your earnings as savings, and that is exactly what is said in the Richest Man In Babylon. He does say not to let it be less than ten percent, so you can do more if you want! If you can’t do more, that’s OK too.
What you need to do, according to this book and every book on building wealth out there, is save your money and then use it on things that will make you more money. And then use the money you make from that to make even more money. In the book, Algamish talks about money earned from money as the children of your savings. Those children should also be used to work for you and make more money.
Once you have your money working for you in that way, you can enjoy all the things that you want to enjoy. But, in the beginning, as you are trying to grow your wealth, don’t spend it on things like clothes. Invest it on stuff that will further your business or increase your money. Invest it wisely, not foolishly, and you will start increasing your wealth in a way you never could just by saving ten percent of your income.
Just make sure you invest it wisely or you will be no better off than if you haven’t saved anything at all. As Arkad said, you need to invest only where your principal is safe. If you don’t, you will lose all your saved money, as so many of us have learned. And that’s a hard lesson to learn!
3. Your ‘Necessary’ Expenses May Not Be Necessary
Many people may be asking how they can save ten percent when all of their money is going towards their necessary expenses. But, the Richest Man In Babylon covers this point really well. As Arkad said, “Study thoughtfully thy accustomed habits of living.”
For instance, just because you are used to it, doesn’t mean you need it. Do you really need all those TV channels? Do you really need to buy the brand name of everything? Is there anything that can be let go of or scaled down in your life? If you look hard enough, the answers will make it clear that some of your ‘necessities’ are desires that you think you need in your life, but don’t.
If you really want to be wealthy enough to enjoy all the finer things in life, you may have to give up some of those extra pleasures right now. But, the reward will be great! Much greater than buying brand names or having every TV channel available. You will be able to travel, spend more time with your family and friends, help other people out easily, and enjoy the finer things in life.
4. Become Wiser
Don’t be content where you are. If you can earn more, you can save more and invest more, and you can become wealthier quicker. Arkad said that by becoming wiser, a person can become better skilled to serve those who they depend on for income. This just makes sense. The more you know, the more valuable you are and the more in demand you are.
This can be applied to your current job for promotions. But, it can also be applied to starting your own business where you use your skill set to make money in different ways, such as online or by managing people to do work for you. You can invest some of your saved money to pay people to do work for you and earn you more money in the process. It’s just a matter of seeing the profit that there is to be made past the initial expense.
Most people say to perfect the skills you already have, which is good advice. But, there is no rule that says you can’t expand your knowledge to take on new ventures. Especially in this age of instant information. Anything you want to learn is available to you, and all you have to do is put in the effort to increase your knowledge and, therefore, potentially increase your wealth.
5. Don’t Hope And Wish Your Life Away
In the book, the subject of luck is approached. I know many people are hoping they will get lucky and strike it rich, so I’m sure this is an important lesson to many people out there who want to be wealthier.
I know a man who used to go gold mining. There was a lot of talk of luck around him. Getting the right claim was lucky. Digging in the right place was lucky. Being able to see something that others couldn’t see was lucky. But he knew that luck was a matter of work. Everyone found gold, but he thought out what he was doing and created machines to easily separate gold from the rocks and dirt. He never wasted a moment on anything but working through plans to find more gold. And, he consistently found enough gold to support him through the year because of his hard work. That is what Arkad is talking about.
Don’t hope and wish. Instead, take action. Do what you need to do to bring luck into your life. Learn as much as you can about success in your field. Be in the right places. Meet the right people. Do the right things. Live by your ethics, even if it means more work. When you consistently take action on the things you want, you will attract more and more luck into your life.
6. Get Determined To Become Wealthier
It doesn’t matter if you fully believe you can be wealthier or not, if you are determined to become wealthier, you will find ways to do what you need to do. In fact, you will do more than you have ever done to become wealthier. You will find ways to save the money, make more money, and invest the money. You will seek out the right information and talk to the right people. As a man named Dabasir says in the book, where there is determination, a way can be found.
As it says in the book, having determination is what has led countless people out of difficult times and into success. It doesn’t matter where you are starting from, determination will help you get the life you want and the bank account that you want!
If you can’t find a way to become more determined, then try reading the book for yourself. The stories and insights may just make you realize that you can succeed, just like everyone else can. You are no weaker or stronger than anyone else. You have the same potential to live a great life just like everyone else. All you have to do is become determined to get it, and you will start taking the necessary steps.
7. Follow The Rules In The Richest Man In Babylon
You don’t need to reinvent the wheel to be wealthy. That should be clear considering that the Richest Man In Babylon is still considered a popular financial advisory book despite almost a century between when it was written and now. What worked then, works now, and you have to do is follow the rules laid out in order to become wealthier.
That’s why I highly suggest reading the book for yourself. It goes over all the rules you need to know in detail. You will not just learn the rules, but hear stories as to why they work. They will be reinforced in your mind in different ways throughout the book, and you will leave it with a clearer vision of how to create wealth in your life – the kind of wealth that is going to bring you all the luxuries and ease you want. That’s when it will stick in your mind and become a part of your daily life.
Some of the rules include:
– Put away some of your income to savings
– Find ways to increase your income
– Use your savings to earn you more money
– Invest your savings wisely and avoid scams and tricks that will rob you of your money
– It’s better to be cautious than to live with regret
It sounds so simple, but it really is the formula to more wealth. All you have to do is understand why these simple rules work and then follow them. The Richest Man In Babylon can help you understand and then the work will fall on you.