Hi friends if you want to learn personal finance to improve your financial condition so you are in right place here you will get summary on book The Richest Man In Babylon by George S. Clason ,
Money is the medium by which earthly success is measured.
FROM “THE RICHEST MAN IN BABYLON ” WHAT YOU WILL LEARN FROM THE BOOK
Money makes possible the enjoyment of the best the earth affords.
The Richest Man In Babylon, by George S. Clason, is a personal finance book for all those who want to reach the pinnacle of financial success. The book teaches readers more than a thing or two about being thrifty, saving and investing wisely through timeless Babylonian parables.
Through entertaining fictional fables of merchants, tradesmen, herdsmen and a maze of other characters in the primeval city of Babylon, by this book one will learn the effective art of saving, how to steer away from debts, practise caution, invest money profitably, invoke the Goddess of Luck and most importantly, establish a secured and lasting fortune.
A classic financial and motivational guide that has led generations to personal and monetary success, The Richest Man In Babylon dispels invaluable and timeless lessons that guarantee pecuniary success even today.
The Richest Man In Babylon Summary By Chapters
Now lets go to the summary of the book The Richest Man In Babylon, by George S. Clason that Written in 1926, on timeless personal finance principles, told in the form of short stories based on the “Babylonian parables”.
Money is plentiful for those who understand the simple laws which govern its acquisition.
At its height, Babylon was the wealthiest city in the world, which Clason attributes in part to the relationship its people had with money. Babylon to illustrate the importance of our relationship with money and the basic principles for acquiring, keeping and earning money.
Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon, six thousand years ago.
Seven Cures For a Lean Purse
The First Cure: Start thy purse to fattening.
Arkad advises on saving 10% of your annual income to start building up your wealth (or purse): “For every ten coins thou placest within thy purse take out for use but nine. Thy purse will start to fatten at once and its increasing weight will feel good in thy hand and bring satisfaction to thy soul”.
The Second Cure: Control thy expenditures
Arkad advises against luxury expenditures that ultimately become confused as necessities: “The gold we may retain from our earnings is but the start”, and, “What each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary”, and, “Confuse not the necessary expenses with thy desires”
The Third Cure: Make thy gold multiply.
Arkad advises to invest and to compound the investment return from these savings: “The earnings it will make shall build our fortunes … Learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you”
The Fourth Cure: Guard thy treasures from loss.
Arkad advises against taking a risk of loss and investing get-rich-quick schemes: “Is it wise to be intrigued by larger earnings when thy principal may be lost? I say not. The penalty of risk is probable loss. Study carefully, before parting with thy treasure, each assurance that it may be safely reclaimed. Be not misled by thine own romantic desires to make wealth rapidly”
The Fifth Cure: Make of thy dwelling a profitable investment.
Arkad advises buying versus renting your principal residence, and to use your residence to establish a business: “I recommend that every man own the roof that sheltereth him and his”, and, “Nor is it beyond the ability of any well-intentioned man to own his home”.
The Sixth Cure: Ensure a future income.
Arkad advises on having a pension and future retirement income: “Therefore do I say that it behoves a man to make preparations for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them”
The Seventh Cure: Increase thy ability to earn.
Arkad advises to keep developing your own skills to increase your investing wisdom and also to increase your earnings power: “The more of wisdom we know, the more we may earn”, and, “That man who seeks to learn more of his craft shall be richly rewarded”.
The Five Laws of Gold
The First Law of Gold.
Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family. Arkad’s advice here is very similar to the First Cure, which is that saving is the start towards building wealth
The Second Law of Gold.
Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. Arkad’s advice here is very similar to the Third Cure, which is that these savings can themselves grow and compound your wealth.
The Third Law of Gold.
Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling. Arkad’s advice here is similar to the Fourth Cure, which is about being patient and having a long-term view.
The Fourth Law of Gold.
Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep. Arkad’s advice here is about investing in what you know about and understand.
The Fifth Law of Gold.
Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
