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Well, I am into week 3 wrap up and I finished, “The Richest Man in Babylon“. A book written by George S. Clason that uses parables set in ancient Babylon to teach basic principles of personal finance. The main character, Arkad, becomes the richest man in Babylon by following these principles: (Click here to watch on youtube)

  • Start thy purse to fattening (save at least 10% of your income)
  • Control thy expenditures (live below your means and avoid debt)
  • Make thy gold multiply (invest wisely)
  • Guard thy treasures from loss (diversify and protect your investments)
  • Make of thy dwelling a profitable investment (own your own home)
  • Ensure a future income (plan for retirement)

That was the shortest summary I could make, Overall, the book emphasizes the importance of taking responsibility for one’s financial well-being and the power of compound interest.

  1. Start thy purse to fattening: The book emphasizes the importance of saving a portion of one’s income, and suggests starting with at least 10%. This principle encourages us to develop the habit of saving regularly, and to make it a priority in their finances.
  2. Control thy expenditures: This principle encourages readers to live below their means and to avoid unnecessary debt. It suggests that one should only spend money on things that are truly necessary and to keep expenses in check in order to be able to save and invest more.
  3. Make thy gold multiply: This principle encourages readers to invest their money wisely. It suggests that one should seek out opportunities to earn a return on their savings, and to continuously educate themselves on the best ways to invest their money.
  4. Guard thy treasures from loss: This principle advises readers to diversify their investments and to protect them from potential losses. It suggests that one should not put all their eggs in one basket and spread their investments across different types of assets to mitigate risk.
  5. Make of thy dwelling a profitable investment: This principle encourages us to own our own home and to use it as a form of investment. It suggests that by owning a home, one can gain equity and potentially earn a return on their investment through appreciation or rental income.
  6. Ensure a future income: This principle encourages readers to plan for retirement and to ensure that they will have a steady stream of income in their golden years. It suggests that one should start saving for retirement early and to continually re-evaluate their plan as their life and financial situation changes.

These are my personal notes and hope you enjoyed this summary of The Richest Man in Babylon