If you like money then you should read The Richest Man In Babylon Book by George S. Clason, the book tells you how you save money, how much to invest and how to live a simple yet extraordinary life.
If X hasn’t invested a single penny anywhere and some random guy says, invest your money here and there then, they won’t ever do that because in their mind, investing in the stock market or even in mutual funds is gambling.
The Richest Man In Babylon is a very small book and it tells you the same thing everyone should invest as little as they can for a better future, whether it is Rs 500 or Rs 5000.
Favorite quote from the book: “Advice is one thing that is freely given away, but watch that you only take what is worth having.”
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The Richest Man In Babylon Book Summary
The Richest Man In Babylon was written in 1926 and its relevance to those people who have just started investing.
As I have said, if you feel that I don’t know how to invest, how much to invest and why to invest then all these answers you will get in this book in simple language.
By the way, the book won’t teach you, which is the best place to invest but it will give you the answer that, you should invest and you will get the reason behind it.
Talking about myself, I started investing from the day, I started earning.
I think you may have heard that there is no bad day to start something new, and if it’s investing then you should do it right away.
- Don’t spend more than you earn
- Invest at least 10% of your income
- Try not to take debt
- Learn as much as you can to earn money
- Give your 100% in whatever you do
- Money is a helpful tool but it’s not everything
- Don’t compare your status with anyone
Invest at least 10% of your income
George S. Clason has said that everyone should invest in whatever they believe whether it’s the stock market, mutual funds, crypto, or even real estate.
Here, you have to decide, how much money you can invest.
Let’s say, you’re earning Rs 25000 a month,
So here, you have first cut down your needs, and wants and after that whatever money is left, you should invest it.
Now, your needs are necessary to live comfortably but when it comes to your wants, you have to keep them less because wants don’t have limits.
Wants can be, you wanted to buy a new iPhone, new house, new TV, a new laptop and this list can go on and on. So buy the things that you requires.
Talking about myself, I invest 40% of my income in the Indian stock market, crypto, and US stock market.
What about you, have you started your investment journey yet?
Stay away from Debt
George S. Clason has said one should not spend more than they earn…
For example, if you’re earning Rs 25000 a month then you should not buy iPhone worth 1 lakh. You can buy the iPhone by taking a loan or via Credit card but you shouldn’t because that one time buy will get into your head and whenever you want to buy something that is out of your budget, your mind you try 100% to give you what you want.
Let me give you my example, I recently bought AC because I wanted to buy AC for a long time,
Now after almost two years, I got the AC and I bought it through EMI?
The reason behind EMI is, that it is interest-free and I had Rs 45000 in my bank account. So I had the choice of whether would I pay Rs 45000 or buy with EMI and chose EMI.
Now that Rs 45000 will be invested whether I can get a 10% minimum return.
This way, I will earn money and I also bought AC too.
Keep in mind that, I am not engaging you to do the same, in my case, I knew what I was doing.
Also, if I buy something on EMI, I ways have that amount of money in my bank account, if I don’t have that amount, I don’t buy the product.
All in all, don’t buy something that you can’t affect and that makes your life, uncomfortable.
No one knows how to be lucky but why we’re talking about it?
As per George S. Clason, luck means opportunities.
If you’re preparing for a government example and if hasn’t studied well then for sure you will fail in the exam.
On the other hand, if you have studied almost everything and if you give an example of what you wanted to give then you will get a good number and that knowledge will stay with you forever and you can see it whenever you want.
So whether you got the opportunity, that knowledge will help you and this can be called luck or hard work.
Whether you’re earing or not, you should read the Richest Man In Babylon book, this will give you a clear idea of the finance world.
Again, if you have any kind of question or doubt then do let me know in the comment, I would love to help you out…
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