The Richest Man in Babylon is definitely one of the most valuable books that I’ve read. It’s teaching finance through a plot from an ancient historical record. The stories are inspiring and although it’s using dated-English, it’s still fairly easy to grasp. Some quick notes that I’ve taken from this book:
10% pay yourself first
20% pay off debt (if any)
70% living expanse
Own your home. The book suggests buying your own property because it is treated as an investment. Instead of spending money on rent, own your house and spend the money to pay mortgage as your property might inflate in the future. If it doesn’t, just think of it as you were paying rent.
But, I think this idea is more applicable to ancient times because people were more glued to a place. Modern people travel a lot more and it harder for many to find a place and settle in that house. Anyways, the book’s argument makes sense too though.
Procrastination and ignorance
A quick quote from the book: “Opportunities wais for no man. Today it is here; soon it is gone. Therefore, delay not!” Procrastination and ignorance will kill you financially in investing. Invest in something you understand thoroughly and ask the experts of the field when trying to obtain experience or knowledge.
Help friends the right way
Another quote: “If you desire to help thy friend, do so in a way that will not bring thy friend’s burdens upon thyself.”
The story of the ox and the ass is rather truthful. Don’t offer help that will burden yourself because that will only ruin the friendship after.
I am really glad that I’m living in this modern age where slavery is as common. People under worse background than me succeeded. I have no debt and am not living in slavery. I’m already at a better starting point than the stories in the book. With enough focused work and dedication, I should have no excuse to not make it.
This book is light and really educational. Totally recommend it to everyone!