Considered a classic book on financial advice, The Richest Man in Babylon was published in 1926 by George S. Clason as a collection of parables from ancient Babylon. Almost a century from its first release, it still remains in print because of the valuable lessons it teaches regarding money.
1. The Start: Keep 10 percent of your income
Simply put, you can start “fattening your purse” by saving 10 percent of your income. In the parable, Arkad uses an egg basket as an example. If you put 10 eggs in the basket in the morning and take 9 out in the evening, you’ll have one more extra egg for the next morning. Arkad likens this idea to saving money. If you are able to keep 10 percent of your income, you’ll slowly build up wealth.
2. Control your expenses
Arkad teaches that though everyone has different labors and incomes, if they all equally have no money, it’s because they easily confuse desires with necessities. This also very much applies to our time today. The second principle, then, tells us to learn how to spend less than we make.
3. Make your money multiply
If you want to build your wealth, it won’t do you any good to keep your savings untouched. What this means is that you should open up part of your savings to make investments. This simply means you have more than one way to gain income. Invest in stocks, look for real estate investments in Singapore, and etc.
4. Invest smartly
Guard your money against loss by making smart purchases and investments. Arkad told a story about how he lost his savings because he gave it to a brickmaker who went to look for jewels as an investment. His mentor then asked him why he would go to a brickmaker who has no knowledge of jewels, and not the jeweler.
5. Use your dwelling for profit
Let’s say you’ve attained a certain amount of wealth and you’re able to buy a small apartment building. You keep a part of it as your dwelling and you rent out the other rooms. This is another way for you to get money easily. Getting paid for rent is, of course, better than you paying for it.
6. Guarantee a future income
As we all know, it becomes harder to work as we age. The sixth principle tells us to plan ahead of retirement. By keeping long-term investments, you’ll be confident that you can still get money even you’re no longer able to work.
7. Learn, Learn, Learn
Simply put, if you have a lot of skills to offer, you’ll have more opportunities to work and earn. Building wealth comes with learning new skills. If you learn a new language, for example, you’ll be much more valuable in a business. That said, broaden your horizons and keep learning!