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What the Richest Man in Babylon Taught Us?

The Richest Man in Babylon, published in 1926, is a timeless classic on gaining financial wisdom. Through essential and effective tips, George Clason pours his knowledge to fatten our lean purses. So let’s see how this brilliant book helps you in financial management.
Book Review_The Richest man in Babylon

Everybody on this planet is fascinated by money, which drives the entire world. One needs to plan wisely to manage money, although earning it can be simpler. Without proper knowledge of financial management, we can’t survive in today’s era where money is the essential source of human happiness.

The Greek city “Babylon” was the richest of all the cities. It was glamorous, full of natural resources and its people were the richest. The people of Babylon understood the importance of money and then started earning, investing, and multiplying money so that money kept working for them even when they ceased to work. Such was the great city of Babylon, and there lived the richest man, “Arkad”, who gave life-changing tips to all the Babylonians to help them become wealthy.

Through Babylonian fables, George Clason digs deep into the mine of Babylon’s financial management secrets and presents them to modern folks to gain and retain personal wealth. It’s praiseworthy to note that these financial lessons are still relevant in the 21st century and offer a lot to being the wealthiest person.

A Look into the Book

The Richest Man in Babylon has been praised worldwide for its primary and unique principles of managing your wealth in the best possible way. It is hailed as the best work for anyone who wants to fulfil their desires.

The popular website Moneysavingways says, “The strength of the book comes from its storytelling qualities, exotic settings, and small size.”

A personal finance enthusiast turned investor and entrepreneur, Justin George, comments about this book “Arkad became the richest man in Babylon because he learned how money worked and used the laws of money to his advantage. This book is a must-read for anyone looking to grow their wealth and ensure a successful financial future.” 

This is an actionable book and is significantly appreciated for its fundamental principles. A Wonderful companion which teaches us lessons from history and constantly leads us on the way to becoming the richest person! We highly recommend this book to all.

Here are the 7 essential principles for managing money effectively.

  1. “Start thy purse to fattening.”
    • It means to start your purse to fatten, i.e. grow. Arkad from the book suggests, “For every ten coins you earn, spend nine but save one.” This asserts we should at least save 10% of our income, which will eventually be accumulated into a larger amount.
    • When you allocate a certain amount of money for expenditure and income, you should be disciplined to follow it. For example, you may save one-tenth of your income out of motivation for the first time, but it needs strict discipline to continue this activity.
    • You might save and invest your money in FDs, RDs Mutual Funds, etc. Mutual Funds are the best option to invest and grow your money with lower risk. On Glide Invest has multiple profiles of Mutual Funds. You can select them according to your needs and desires.
  2. “Control thy expenditures” 
    • Human desires are never-ending, and we keep fulfilling them. Moreover, in this highly capitalistic and consumeristic era, most desires are materialistic and are fulfilled by money only. But don’t you think we should think wisely and reduce the expenditure on those things that are less important than our core necessities?
    • Arkad says you will want to expend money on desires after you are done spending on necessary expenses. Try to control that. Try to control your desires that don’t add value to your life. Try to control your unnecessary expenditures. Save your money to fulfil that greatest desire which will remain with you everlastingly.
    • “Budget then thy necessary expenses. Touch, not the one-tenth that is fattening thy purse. Let this be thy great desire that is being fulfilled.”
  3. “Make thy gold multiply”
    • You have disciplined yourself to save one-tenth of your income. You are controlling your expenditures to protect your growing savings. Now, you have to make your wealth labour and increase. But how? Through Compounding? Yes!
    • It is said, “Compounding is the eighth wonder of the world.” The magical returns compounding offers on invested money give you and your future generations advantages. Babylonians believed in the wonders of Compounding and made their money work for themselves.
  4. “Guard thy treasure against loss”
    • Greed is a dangerous emotion, and it will provoke you to make such investments where the principal itself is in danger. However, the loss is inevitable in such situations, and there is no better option than guarding it by all means. So, let’s see how you can guard your treasure against loss.
      • Invest in where your principal is safe, where it may be reclaimed if desirable, and where you will not fail to collect a fair rental. E.g., Mutual Funds.
      • Consult with those who have the best knowledge of investments and savings. Glide Invests’s Smart Portfolios built by experts and automated by technology will guide you on the path of financial freedom. These are designed to be personalised, offer lower risks, and deliver higher returns at lower costs.
      • Seek advice from those who have gained profits from wise, loss-free investments. 
  5. “Make of thy dwelling a profitable investment.”
    • Arkad believed that one’s family is safe, healthy, and wealthy under a roof of their own. So, he advised all the Babylonians to own a house where they could live happily without worrying about expenditure on rent.
    • Also, he suggests that if a person can save and invest money from the allocated 9 parts without detriment to well-being, his wealth will grow much faster. And from this, he can buy his own house and shelter his family.
    • “Own thy own home.”
  6. “Insure a future income”
    • “Provide in advance for the needs of thy growing age and the protection of thy family.”
    • It’s really important to think about your finances in the coming days when you will be unable to earn due to physical inabilities.
    • As Arkad says, “No man can afford not to insure a treasure for his old age and the protection of his family, no matter how prosperous his business and his investments may be.”
    • So, be wise and ensure your future income.
  7. “Increase thy ability to earn”
    • In today’s unstable economy, we can’t rely upon only one source of income. We should have multiple sources of income (side hustles) to ensure the uninterrupted supply of money even if the primary source gets disturbed.
    • Acquiring trending skills, gaining knowledge, and building side businesses will help you diversify your income sources, increasing your ability to earn more.
    • “Thus the 7th and last remedy for a lean purse is to cultivate thy powers, to study and become wiser, to become more skilful, to act as to respect thyself.”

So, these are the 7 great Babylonians' principles of financial freedom. Apply them intelligently in today’s financial world and gain as much as possible. We are sure you won’t regret buying and reading such a powerful book. We wish you all the luck in your future financial endeavours.

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