The Richest man in Babylon is a classic I would recommend that everyone reads every beginning of the month. Okay, not everyone but people that has the strong and definite desire to be wealthy.
The Book has its setting in the ancient Babylonian City, but this City can be represented by any wealthy city like Lagos, New York, Enugu, Johannesburg etc. The point is basically that in the midst of plenty, people still live in abject poverty and all they have is desire and hope that one day, goddess of luck will bless them. Little wonder why betting is rife in most of these cities – because the “have-not” believe that it is only luck that can change someone’s financial situation. Arkad disagreed.
Arkad is the protagonist of the book, he was once poor, but he later became the richest man in the city. When the King approach him to tutor the youths of the City on how to create wealth, he was glad to show them the secret of making wealth.
Some of the Skills he thought them include:
START THY PURSE FATTENING: Have you ever wondered why everyone is mostly broke after a huge celebration period? Even though everyone earns at different ratio yet, there is tendency of everyone emptying their purse for Christmas or Salah or Offalla? The reason is because, there is always a product appealing to man, there is always more products that money can buy. Therefore, to flatten your purse, a part of what you earn is yours to keep. Keep at least 10% of EVERY money that comes to you. At the end, you will reason that you will get along just fine.
CONTROLL THY EXPENDITURE: There is a saying that rich men buy asset while poor men buy liabilities. This is not always true, but you get the point. Make a list and buy what is necessary. Two pairs of shoes will serve just as 10 pairs unless you are in the shoe business. You necessary do not need Balenciaga and Benz, they are luxury that will drain your purse and leave you penniless. Create a simple rule to control your expenses.
MAKE THY GOLD MULTIPLE: Some people take to savings alone, but savings cannot make you rich. You must learn to keep your gold in safe investment. The book outlines in simple terms how to choose a good investment and multiply your gold. You need to see this chapter in the book.
GUARD THY TREASURES FROM LOSS: To guard your treasure from loss, deals more with your choice of investment, advisor and partnership than the actual money. Arkad remembers taking the advice of a bricklayer on gold, it ended in tears for him. He learnt his lesson. The advice of a professional may be more expensive and technical but that is why he is an expert. Not that bricklayers do not give advice but let their advice be limited to bricklaying and a doctor to health. Taking the advice of a doctor on bricklaying is as dangerous as taking the advice of a bricklayer on health.
Other lessons include how to make your dwelling a money generating machine, insure future income among others. There are a lot of financials lessons parked on this book that anyone that has read it will always want to play by the financial rules.
I recommend this book to anyone building wealth
Reviewed By: Alexander Akadieze.
