The Richest Man In Babylon by George S. Clason 

The Richest Man In Babylon Book Summary

It’s a one-on-one guide to money management. The George S. Clason teaches you how to save money, where to invest, why investing is important, and what happens when you don’t invest. Most importantly, it highlights the true value of money.

The Richest Man in Babylon is a small book, but it delivers a powerful message: everyone should invest, no matter how little, for a better future. Whether it’s $10 or $1000, the key is to start.

Rate This Book
[Total: 0 Average: 0]

Life’s Last Edit by Rahul Makwana

Think of it as a self-help bible—not just a collection of lessons, but a guide to transforming your life.

The Richest Man In Babylon Notes

  • Don’t spend more than you earn.
  • Invest at least 10% of your income.
  • Try to avoid taking on debt.
  • Learn as much as you can to earn more money.
  • Give your 100% to everything you do.
  • Money is a helpful tool, but it’s not everything.
  • Don’t compare your status with others.
  • Take risks that you can afford to lose.

The Richest Man In Babylon Summary

The book was written in 1926, yet it’s still relevant today. It’s one of those books that gives you a clear idea of why investing is a must and why everyone should do it.

Now, the book won’t tell you the best places to invest, but it will give you the reasons why you should invest your money and the logic behind it.

Speaking from my own experience, I started investing the moment I began earning.

So here’s what I’d say to you: if you’re earning, make sure you invest where you feel comfortable and safe. Don’t invest just because your friends are doing it or because you heard about it somewhere else. Go with what feels right for you.

How Much To Invest

First, decide how much money you want to invest.

Let’s say you’re earning $2500 a month.

Start by cutting down on your needs and wants. Once you’ve done that, invest whatever is left into the stock market, mutual funds, or anywhere else where you feel safe.

The ideal number would be 10%, which is $250 if you’re earning $2500 a month.

Your needs are essential for a comfortable life, but when it comes to your wants, you need to keep them in check.

Wants can include things like buying a new iPhone, a new house, a new TV, or a new laptop. The list can go on and on. So, buy what you truly need, not just what you desire.

Personally, I invest 40% of my income in the Indian stock market, crypto, and the US stock market. I can do this because I don’t spend much every month. But if you’re living in a rental house or apartment, there’s no need to invest 40%. You can figure out the right amount by listing your needs and adjusting accordingly.

Stay Away From Debt

For example, if you’re earning $2500 a month, you should not buy an iPhone worth $1000.

You can buy the iPhone by taking a loan or using a credit card, but you shouldn’t. That one-time purchase will stick with you, and next time, you’ll buy unnecessary things, even if you don’t need them.

Let me give you my example. I recently bought an AC.

I got it during a sale, so it was interest-free, and I also had $4500 in my bank account.

I had two choices: pay the full price or take an EMI.

I chose the EMI. Why?

The reason was simple: I didn’t have to spend the entire $4500. I could use that money for other things, like investing, or spending it elsewhere.

At the same time, I still had the $4500 in my account, so it wasn’t like I bought the AC and suddenly didn’t have the money left. I chose EMI because it was the better option.

Similarly, if you’re buying a new iPhone worth $750 and you don’t have $750 in your bank account, don’t buy it. Buy it on EMI if you have $750 in your account.

Make this rule and apply it to everything you buy. This rule will keep you from going into debt.

Luck Factor

As per George S. Clason, luck means opportunities.

If you’re preparing for a government exam and you don’t study well, then for sure you will fail.

On the other hand, if you study well, you’ll get good results. So don’t go out luck so much, Luck isn’t real. The only real thing is YOU, so if you want something work on it.

The Richest Man In Babylon Review

Whether you’re earning or not, you should read The Richest Man in Babylon. It will give you a clear understanding of the finance world. It’s a small book, but it will make a huge impact on your life.

“Advice is one thing that is freely given away, but watch that you only take what is worth having.”

Buy The Richest Man In Babylon:

Rate This Book
[Total: 0 Average: 0]

The Richest Man In Babylon Quotes

“It costs nothing to ask wise advice from a good friend.”

“The hungrier one becomes, the clearer one’s mind works— also the more sensitive one becomes to the odors of food.”

“A part of all I earn is mine to keep.’ Say it in the morning when you first arise. Say it at noon. Say it at night. Say it each hour of every day. Say it to yourself until the words stand out like letters of fire across the sky.”

“Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow. The sooner you plant that seed the sooner shall the tree grow. And the more faithfully you nourish and water that tree with consistent savings, the sooner may you bask in contentment beneath its shade.”

“The thoughts of youth,’ he continued, ‘are bright lights that shine forth like the meteors that oft make brilliant the sky, but the wisdom of age is like the fixed stars that shine so unchanged that the sailor may depend upon them to steer his course.”

“A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford. Pay yourself first.”

“Gold is reserved for those who know its laws and abide by them.”

Love What You Read, You Might Like These too…

By the way, we also have a WhatsApp Channel! If you love reading, this is the perfect place for you to join—and the best part? It’s completely FREE!

SELECTED JUST FOR YOU...

Leave a Reply

Your email address will not be published. Required fields are marked *