The richest man in Babylon

The book "The Richest Man in Babylon" by George Clason is written as a tale that can be read in one breath.
The books tells about few basic principles relating to finance, which in most places in the world are valid and enforceable regardless of the difference in ages and the era in which we find ourselves.

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  1. No matter what everyone work for a living, everyone has the opportunity to exchange labor, knowledge, experience or the product of their labor for money. Everyone has a skill, something that is good at, and it is logical and reasonable to start earning money from it and not to wander into the unknown with empty pockets.
    The moment at which a person starts to earn some money, is where you can start producing and saving some part away. This is the key to future wealth.
  2. For a person to save, you must first control your costs. It is true that life is here and now. We satisfy our desires as far as we can. However, very often, the more we can afford, the more the desires grow. This is characteristic of the ego. Now is the time to recognize if we need all the things that the material world can provide us, to be really happy. Recognize the vital need and the things we do for our desires - for entertainment and fun.
For this purpose it is very useful to write and plan our revenues and our expenditures. If we can reach personal happiness independent of external factors, we can lessen our desires and put some money apart.
  1. The next step is investment. If the money saved is invested properly it has the ability to increase or at least maintain over time. In this step sometimes the normal logic is not applicable. One should not listen neither family nor friends, but their own flair and feeling.
  2. Protection of Finance and proper investment are very similar as points. There is an example in the book of how there is no easy profit. In the real world it is better not to trust the good words and promises of easy millions.

If you have collected money and at the end of the year and go on holiday, the next year you will begin again with empty pockets. If you buy a new car, with which you will carry only yourself and your family - this again is not so good investment. Investing is when the money invested, begin to return in some way in the future. You will not return richer from the vacation and the new car requires no less fuel, tires, repairs and so on.

One of the keys to proper investing is knowledge. If you personally do not have the necessary knowledge, look for it by a person who uses it, which it has experienced in practice. It is foolish to want financial advice from a butcher or health advice from a construction worker.

  1. Rule number five is to provide your own housing. This point, at least for me is part of our ego, however, there may be some good reason. One will be motivated and will make more efforts to create coziness and warmth, and from there will be more comfortable and happier, if it holds the place in which he lives.
  2. Rule number 6 recommends to think long-term. Life is here and now, but passes for a moment. Time is an illusion. Prepare yourself, while you still have force and time, for the time when you will not have. History has shown that it is not good practice to rely on the state. Another option is to rely on your children, following the natural biological attachment. But if you provide your own antiquities of time, not only you will not be a burden, but also you can give them a good start in life.
  3. Personal success depends on several things:
  • To have a desire to achieve something. Without desire - there will be no will, no passion, no ambition, no action. The desire and success is not necessarily something related to money. It is true in all areas of life;
  • To have a specific purpose. A man without a purpose is like a ship without a compass - It will sail wherever the wind blows;
  • With a combination of the previous two it is easily achieved the next step - self improvement in the area in which we want to develop. With desire and a clear goal, gradually, we will acquire the knowledge and experience necessary to achieve our dreams.
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