The Richest Man in Babylon is a classic book on how to gain and retain wealth. Similar to Robert Kiyosaki's Rich Dad, Poor Dad; the lessons are told in parables which are entertaining and easy to undertand thus is a good teaching tool even to children. It was written in the 1920s but the lessons are as true now as it was then.
1.Always save at least one-tenth of your income, invest it and put your money to work for you.
So simple yet the basic building block of accumulating wealth. Saving at least ten percent of our income or salary and investing it wisely will gradually build our wealth. Imagine each coin is a worker that works for you and produces more workers. Soon you will have an army of workers. Kiyosaki put a different spin to this in his book: To save money first then worry about bills after savings.
2.Do not spend on needless things.
While saving money, we should also control our expenses and not spend it on unnecessary things. For example, a lot of my colleagues spend $4 coffee from Starbucks daily when we have free coffee in the office.
3.Seek the counsel of knowledgeable experts before you invest.
A lot of us can relate to this. How many times have we invested in the wrong thing? Or invested at a bad time? How many of us listened to investment gurus in the internet and end up losing money? Finding a reliable financial advisor or business expert to help us with our investment or even how to start a business will help us not only to avoid losing money but also to multiply our wealth.
4.Never put the principal that you invested at unseemly risk.
In modern terms, this is known as protecting your capital. We have to manage our risk and not put all our eggs in one basket. Be ready with an exit strategy once you reached your target price or if your investment failed to meet your expectations.
5.Increase your knowledge, expertise and skills, so you can earn more money.
We have to keep sharpening the knife or keep training ourselves. For example, if you want to trade stocks or crypto you should at least learn how to read charts. You can also learn and familiarize yourself about crypto, or learn how to read and understand financial statements. We can also go on seminars to learn how to start and operate a business.
6.Good luck comes to those who know how to seize opportunities and act on them quickly.
Take chances and opportunities quickly when they come, do not let it fly by. A simple example for crypto enthusiasts are airdrops which we can get if we do the necessary steps. We just have to make an effort to qualify. In business, it's much more complicated since you will have to take calculated risks to take advantage of opportunities that may come your way.
7.Be cautious with your money. Lend it only to those who are sure to repay it.
Do not lend money to those who cannot pay. As harsh as it may sound, you are not running a charity. Avoid placing other people's burden on yourself by giving away money that you cannot recover. Lend only to those you know has the ability and willingness to pay.
8.Take comfort in hard work. It is your best friend.
This applies to employees. If you work hard then you will gain the trust of your superiors and get promoted and thus have a higher pay. Not everyone knows how to operate a business or invest in the financial markets and cryptos. Having a career working for a company can also bring wealth.
I read the book long time ago and it inspired me to save money and learn how to invest. It even inspired me to work harder in the office and treat my work as a business. I bought the book for my daughter and hopefully she will get inspired by it as well. If you have younger children, you can read this to them as a bed time story.