The Richest Man in The Babylon – By George S. Clason
I remember having this funny discussion with my wife. She wanted to buy a refrigerator, a washing
machine and anything in-between. She knew quite well that my businesses make enough money to buy anything she needs, but those money rarely stay in my bank accounts because I’m a prodigal son.
I’m not a prodigal son, but I’m not so good at saving or spending money. When it comes to money, the two things I’m good at are; Make it, re-invest it and manage whatever remains.
Now, you can pity the woman that married a “stingy” man like me.
Anyway, the first major lesson is the Richest Man in Babylon is;
Pay Yourself First.
Let’s move to the second lesson.
Now, you probably have a question;
How can I pay myself first?
You see, the first thing most people do whenever they make money is to spend it.
That latest iPhone.
That bigger TV-set
That bigger refrigerator.
Those better clothes.
The list is endless and that’s why most people struggle financially all their lives. They pay the rich first and make the rich richer. If you want to have financial freedom, George S. Clason suggested that you should save at least 10% of whatever you earn.
That isn’t a commandment.
You can start with 5% or 20%, depending on who you are and how much you earn. In fact, you may decide not to save.
Yes, I mean it. You may decide not to save money as I told you before, I rarely save money.
What I do is this;
I intentionally put myself in different investment debts, like acquiring a real estate property with 10% down payment or starting a new business that requires me to pay my employees every month by taking money from the existing business.
Sorry, my wife has been angry with me a few times because we may sometimes get broke, even though my businesses make good money.
It isn’t my fault.
I have enough good debt to take almost all my money away.
The second important lesson in the Richest Man in Babylon is;
Save at Least 10% of Whatever You Earn.
Now, after you save 10 or 20% of your income, what do you do with it?
Yea, it’s time to celebrate. Call your friends for a party, buy your wife a new car.
You deserve it, celebrate the best charisma of your life.
That’s what poor people do with their savings. I don’t know about your country,but very common in Nigeria. In my part of the world, a lot of people save money for Charisma, new TV set, new clothes, etc.
Kindly let me know in the comment, do people save money for parties and consumer goods in your country?
Now back to the point I was making.
The only reason why you should save in the first place is because you want to invest. if you just start building wealth, you don’t need to LOOK rich.
You really want to be rich.
What most people do is to try and look rich by buying new, bigger and latest stuffs.
You don’t want to do that!
You want to save, so that you can invest in things that can make you money while you sleep.
The third important lesson in The Richest Man in Babylon is;
Invest Your Saving.
Then, you may want to ask me; “But what exactly should I invest in?”
I understand your concern and I’ll address that shortly, but before then, let me list some of the areas by which you can invest in this time of ours; We have Stocks, Real Estate, Bonds, Your family or friend’s business or your own business. Your choice of business will also be influenced
by who you are, how much you want to invest, how much time you have and what you know.
In all, the most important thing before you invest your hard earned money is that you should get adequate education as regard anything you want to invest in. I have read like 20 business books, before I went fully into the business world, as instructed by my mentor and coach I don’t think you should do less.
Why should you invest your one year savings in stocks, if you can’t invest a month to study how stock market actually works? Why should you invest your 3 years savings on starting a business, if you can’t even take 3 months out to read 2 books about business?
The fourth important lesson in the Richest Man in Babylon is;
Get Adequate Education about Whichever Field You Want to Invest.
In my experience, most people in the world care so much about today and nothing much about the future. As a young guy, when I was buying books, my age mates were buying latest clothes and phones.
Now as an adult, while I’m investing in real estate and my business, I see other adults buying latest iPhones and cars. If you care about your tomorrow, you’ll sacrifice today for it.
The fifth important lesson in the Richest Man in The Babylon is;
You Must Be Able to Delay Gratification
Now, Let’s Discuss, What lessons do you think I missed in this book?
What points would you like to add?
Which other good books would you like our team to summarize next?
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