Wednesday, January 10, 2018

The Richest Man in Babylon

I did like the book. It talked about saving, cutting down expenses, investing through the fables and storytelling. I found it hard to read the Babylon English but I was able to get the essence of the book

In Summary

  • Pay Yourself First : Save at least 10% of your income. Any money you make, keep 10% to yourself.
    • Compounding : Let your money make money.
  • Control Your Expenses : Spend less than you make, live below your means, cut down your expenses, so you can save the money.
  • Invest : In present day it could mean invest in different asset classes
  • Cut down Losses:  Invest in things that you are knowledgeable or know someone who is knowledgeable and successful with investing and making profits.This is also good education and more importantly disciplined habits, 
  • Make Investments Profitable : Talks about investing in a house, but in modern day not sure how relevant the example of investing in house is but taking the essence of it. Explore investments that can become profitable. Needs some good education on how to turn the investments profitable
    • Choosing Investments : Gives the story of the money lender and how he picks he lends or makes his investments. Morale of the story: Better a little caution than great regret. Have criteria for investing and lending. Will the investment have good returns with out the risk of losing it all ? will the money invested/lended return the principal along with interest or growth ?
    • Hedge and Insure Investments : Talks about the Walls of Babylon - Be Fully protected
    • Insure Income for Future: Save and Invest for Retirement, this is also not entirely in our control
    • Increase the Ability to Earn: Talks about Desire and Goal Setting. We need to build some skills, leverage time and for something leverage money. Be consistent and disciplined with goals and making progress towards those goals. This is something easily said than done. I haven't figured this out yet
    • Opportunity and Opportunity Costs : It talks about meeting the Goddess of Good luck, recognizing opportunities and not procrastinating when the opportunity is there. Seize the opportunities. Seems obvious but needs some good education to keep identifying opportunities as it can easily be distracting to think everything is an opportunity. 
    • Focus and Will - Where the Determination is the Way can be Found. Talks about the story of a camel trader who gets into debt, steals, becomes a slave,  escapes from slavery and pay offs the debts
    • Hard Work and Effort Leads to Luck -  Telling a story about the luckiest man in the babylon to a prince of how hard work got him and his grand father out of slavery.

    I really enjoyed reading this book. Although most of the things learned in this book I had read from books like Rich Dad Poor Dad,  Dave Ramsey's Baby Steps, I realized this book was written in 1928 which means these modern books were inspired from the original "The Richest Man in Babylon".

    Except for the language (the Babylonian English) I really enjoyed the stories and tales of Babylon. Timeless advice still very relevant and applicable today after almost 90 years of being written.

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