The Book In 3 Sentences
- Save 10% of everything you earned and do not confuse your necessary expenses with your desires.
- Work to (L)earn and improve your skills and capability to generate income streams that help you build your fortune of wealth.
- You can never attain the full measure of success unless you vanquish the spirit of procrastination within you.
Book Summary + Notes
The 7 Simple Rules of money
- Save at least 10% of everything you earned
- Live within your means
- Invest your money wisely
- Avoid Investments that promises usurious returns
- Own your home
- Protect yourself and secure your family’s future with life insurance
- Strive to improve your knowledge and skills to build a reliable income stream(s).
On Seeking Advice
- It costs nothing to ask wise advice from a good friend.
- Go only to the experts of that particular subject if you want expert advice. For example, do not take financial advice from a brick layer, take it from a financial expert. Because giving advice is too easy, even for amateurs.
- Do not ignore the advice from the aged and experienced. Advice is more valuable when it is backed by experience. While time may have encouraged evolution, the root of concept often remains.
On Taking Actions And Achieving Success
- Good luck can only be found and applied if you take action.
- Prepare yourself as early as possible so you can recognize and grab hold of opportunities at first sight.
- We have more than sufficient time to learn and build wealth. Only if you don’t waste them on distractions.
- You will never attain the full measure of success unless you vanquish the spirit of procrastination within you.
- The soul of a free man looks at the world as a series of problems to be solved.
On Building Wealth
- A reliable income stream is essential to building wealth.
- Save a part of all of your income and you will see your money grow.
- Start by saving money for your capital. Invest with that capital and contribute consistently to your investments. The earlier you invest, the more you will reap through the power of compounding interest.
- What each person calls the “necessary expenses” will always grow to match your income unless you resist that urge. Do not confuse your necessary expenses with your desires.
On Perseverance and Paying Down Debts
- Where the determination is, the way can be found
- To pay off your debt without depriving yourself of enjoyment. Live on 70% of what you earned, save 10% for yourself, and pay your debts with the remaining 20%.
- be not swayed by the fantastic plans of impractical men who think they see ways to force thy gold to make earnings unusually large
- Do not fall for investment schemes by non-experts who promise you large returns that seem too good to be true.
- Do not limit yourself to learn only what you’re being taught. Learn to find out what you don’t know.
- On making decisions, prioritize the safety of your money above all. Better a little caution than a great regret.
- Enjoy life while you are here. Do not overstrain on savings.
The Richest Man In Babylon imparts wisdom on the general principles of personal finance. While the concepts may not be revolutionary to the financially-savvy, it is nonetheless, entertaining to read.
Recommended for beginners who are taking a turn in their personal finance.