The Richest Man In Babylon

The Richest Man In Babylon Summary

This book was written by author George S. Clason and a common book that many mentors will recommend you to read. And yes, it was recommended by my mentor, Adam Khoo. Below are what I have learnt from each chapters of The Richest Man In Babylon.

Chapter 1: The Man Who Desired Gold

  • "A Part Of All You Earn Is Yours To Keep"
  • PAY YOURSELF FIRST, at least 10% of your monthly income
  • Make the 10% saving of your money WORK FOR YOU
  • REINVEST the profit / return
  • ADVICE IS FREE and dangerous, thus ask the advice from the right person. If you want to start a business, ask advice from a businessman and not your friend whose does not own a business
  • Start SOONEST
  • OPPORTUNITY is only for PREPARED man

 Chapter 2: Seven Cures For A Lean Purse

  • Start the purse to fattening

    • Start to keep at least 10% of your income
  • Control the expenditure

    • Two type of expenses: Necessary and Desired
    • Should not spend more than 90% of our income for Necessary expenses, and next Desired expenses.
    • Have monthly budget  for expenses, it is a tool to help safeguard our 10% income
  • Make the gold multiply

    • Make the 10% saving of our income and its return work for us
    • Wealth is not the saving we have in our purse, it is the stream of money that flow consistently into our purse
  • Guard the treasures from loss

    • Guard our 10% saving from losses
    • Don't invest in something that we are  not sure of and without study
  • Make of the dwelling a profitable investment

    • Own your own home, means buy your own property to stay instead of renting
  • Insure a future income

    • Provide in advance for the needs of your growing age and family
    • And in the event of premature death or disability
  • Increase the ability to earn

    • If you need more money, then increase your skills or ability to earn more and not by borrowing more money

Chapter 3: Meet the Goddess of Good Luck

  • Good luck can be attracted by accepting the opportunity
  • Those eager to seize opportunities will attract the interest of the good goddess

Chapter 4: The Five Laws of Gold

  • Each investment venture need a great care of plan, take no chance of losing the principal or tying it up in unprofitable investment
  • The First Law of Gold

    • Put 10% of your income consistently and invest it wisely will surely create a valuable estate that will provide an income for you in the future and safeguard your family in case of something happened to you
  • The Second Law of Gold

    • Find a profitable investment for your money to work and multiply
  • The Third Law of Gold

    • Money will lost if you are careless
    • Invest under the advise from wise men, not simply anyone
  • The Fourth Law of Gold

    • Invest your money in something you are familiar with or have knowledge
  • The Fifth Law of Gold

    • Don't invest in something that are too good to be true

Chapter 5: The Gold Lender of Babylon

  • If you want to help a friend, do in a way that will not bring your friend's problem to you
  • Better a Little Caution than a Great Regret – if you want to borrow your money to someone, make sure the person borrow it for a good reason, and he / she have the ability to pay you back.

Chapter 6: The Walls of Babylon

  • We Cannot Afford To Be Without Adequate Protection
  • Need to guard ourselves against unexpected tragedies by having insurance, savings account and dependable investment

Chapter 7: The Camel Trader of Babylon

  • Where The Determination Is, The Way Can Be Found
  • Pay back all your "Bad" debts, the money you owe to your friends, credit card, etc
  • List down all the bad debts you have, and set aside 20% of your income monthly to repay it. If you owe your friends' money, inform them your repayment plan to them

Chapter 8: The Clay Tablets From Babylon

  • Tablet No. I

    • Exact plan to settle the "Bad" debts
    • 10% of income go to saving / investment, 70% for monthly expenses
    • Should not spend more than 70% allocated for monthly expenses
  • Tablet No. II

    • 20% of monthly income to repay debts
    • Divide it fairly to all your debtors, thus in due time all your debts will be surely paid off
  • Tablet No. III

    • Share your debts repayment plan to your debtors, show them how much you owe and how much repayment a month to them
  • Tablet No. IV

    • Work hard to earn money
    • Follow the plan of 10%, 70% and 20%
  • Tablet No. V

    • Once you have fully paid off the "bad" debts, you are a FREE man
    • Follow this approach from now onward, will make you richer

Chapter 9: The Luckiest Man in Babylon

  • Willing to work and learnt, put more efforts and this will attract opportunities.
  • Don't give up in any situation, find a way to make it through.

If you are interested to read the full book, below is the link to Amazon.com

 

Disclaimer: The summary above is based on personal opinions and interpretation of the book contents. It is only for sharing, not an advice to anyone. 

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