The Richest Man in Babylon by George S. Clason
Babylonians discovered many of the basic principles behind wealth. Clason presents them through a series of ancient tales and parables.
7 Rules of money
Start thy purse to fattening: save money.
Control thy expenditures: don't spend more than you need.
Make thy gold multiply: invest wisely.
Guard thy treasures from loss: avoid investments that sound too good to be true.
Make of thy dwelling a profitable investment: own your home.
Ensure a future income: protect yourself with life insurance.
Improve thy ability to earn: strive to become wiser and more knowledgable.
5 Laws of Gold
It comes easily and in increasing quantity to the person who saves at least 10% of their earnings.
It labors diligently and multiplies for the person who finds it profitable employment.
It clings to the protection of the person who invests their gold with wise people.
It slips away from the person who invests gold into purposes through which they are not familiar.
It flees the person who tries to force it into impossible earnings.
Financial Advice from Ancient Babylon
The laws of money are like the laws of gravity: assured and unchanging. Money is plentiful for those who understand the simple laws of making money.
Many people never achieve a serious measure of wealth because they never seek it. They never truly seek it, focus on it, and commit to it. “Where the determination is, a way can be found.”
Youth often assumes, incorrectly, that the old and wise only have wisdom about days gone by.
Pay yourself first. You should save at least 10% of what you earn. More if you can afford to do so.
Do not take advice on finance from a brick layer. Go to people who are experts in a particular subject if you want expert advice. It’s too easy for amateurs to give out advice.
What each person calls their “necessary expenses” will always grow to match your income unless you resist that urge. Do not confuse your necessary expenses with your desires.
“A man’s wealth is not in the coins in his purse. It is in his income.” Ensure a future income. Every person gets old. Make sure your income will continue without work.
Increase your ability to earn. Improve your skills. As you perfect your craft, your ability to earn more increases. The more we know, the more we may earn. The person who seeks to know more of their craft is capable of earning more.
You cannot arrive at the fullest measure of success until you crush the spirit of procrastination within you.
Above all you should desire safety for your money. Better a little caution than a great regret. Hence, protect yourself with insurance. You cannot afford to be unprotected.
Do not live beyond your means.
The soul of a free man looks at the world as a series of problems to be solved. Meanwhile, the soul of a slave whines.
No man respects himself if he does not repay his debts. If you are in debt, live on 70% of what you make. Save 10% for yourself. Use the remaining 20% to repay your debts.
Stick with the plan. Money accrues surprisingly quickly and debts are gone fast with discipline and consistency.
Save at least 10 percent of everything you earn and do not confuse your necessary expenses with your desires. Work hard to improve your skills and ensure a future income because wealth is the result of a reliable income stream. You cannot arrive at the fullest measure of success until you crush the spirit of procrastination within you.