THE RICHEST MAN IN BABYLON SUMMARY BY CHAPTERS
The Summary of “The Richest Man in Babylon” book author George S. Clason. It is a self-help book for financial advice. The ancient Babylonians are the first to discover a Universal Law of Prosperity in his classic book “The Richest Man in Babylon” by George S. Clason.
|The Richest Man in Babylon Summary
The summary of the book “The Richest Man in Babylon” explained to you in a chapter by chapter. In this summary, we are explaining to you the 5 most important chapters.
Chapter 1: Pay yourself first-save at least 10% of all you earn
This is an important principle from the book “The Richest Man in Babylon Chapter 1 Summary”.
This principle states that 10% of all you earn is yours to keep aside from all your expenses.
But how to you actually make this a daily routine? It simple every time you get money, divide the amount with 10 and put it in your saving.
Make in non-negotiable or even better make it automatic.
I’ve been using this principle for a while and I must warn you that this is simple but it’s not easy.
If you don’t make it automatic you won’t save the 10% you should. Most people say that they can’t afford to save 10% of their earnings.
If some emergency pops up and you suddenly spent 10% of your money, I bet you’ll find a way to make ends meet anyway.
It’s funny how not everyone earns the same amount of money but at the end of the month, the majority of people are equally poor.
My goal with this principle is to build an emergency fund sufficient to cover all your expenses for at least half a year and after that to use some of the money for investments and your further future use.
Chapter 2: Control your expenses
Live upon less than you earn the next step after you’ve put aside 10% of your earnings is to split the rest to cover your necessities like food, rent, and bills.
Budget your money and try to reduce or completely eliminate some of your expenses.
Make a clear distinction between wants and necessities.
First, cover your necessities and then spent the rest however you want.
Don’t be an unwise buyer or foolish spender!
If you can’t afford something don’t buy it.
If you start implementing this in your life you’ll find that when you earn more you’ll naturally start to buy more expensive things and spent more than you used to.
But if you want to become rich you must keep your expenses much lower than your earnings.
That’s why it’s critical to prepare for this upfront by creating a budget.
You can use the bucket method for example. I will soon publish one blog on this topic.
Chapter 3: Invest in yourself
Increase your potential to earn this is my absolute favorite.
We should constantly learn and improve ourselves, master our craft, and strive to become the best in whatever we are doing.
With the internet, we have all the knowledge we’ll ever need.
The question is will we use it?
I usually read one book a month, watch tons of YouTube video, and from time to time I took online courses.
But I’ve found that I learn best when I teach other peopleso I decided to create a blog and share what I’ve learned.
Also, this is great because I can get your perspective on the given topic. So, I request you to comment section give me your feedback through I can improve to myself.
This is the safest investment you can ever make sure you do it well.
First focus on “How to Learn Effectively?”
Learn techniques like mind mapping, memory palace, Pomodoro, and stuff like that.
Chapter 4: Make money work for you
Learn to invest wisely you can’t become rich without investing.
To build your wealth you must have multiple streams of passive income.
Focus on investing only in things you are familiar with you
Always do your research before investments and go for investment with a safe return.
Your principle should always be safe, possible to reclaim and earn your interest.
Advice is freely given so make sure to follow only the advice from a wise man with experience.
I recommend you start investing in the things you spend most time on.
Buy a high-quality bed which will make one-third of your life awesome.
Spend money on healthy food and most importantly spend money on improving yourself.
Chapter 5: Protect your wealth and ensure future income
Advice from the book is to buy lands and houses.
Their value is permanent and you can later rent or sellthese if need. Buying life insurance is a smart move and you can use this to save 10% as well.
Also, the future of your family is secured.
Before lending money ask yourself if the person can pay it back and have a reputation for doing so.
Take into consideration that humans in strong emotions are not safe to risk my rule for borrowing is to borrow only what I don’t expect back.
Here is a quick summary of the chapter explained above of the book “The Richest Man in Babylon”:
- Pay yourself first-save at least 10% of all you earn.
- Control your expenses-live upon less than you earn.
- Invest in your self-increase your potential to earn.
- Make money work for you-learn to invest wisely.
- Protest your wealth and ensure future income.
THE FIRST COPPER YOU SAVE IS THE SEED FROM WHICH YOUR TREE OF WEALTH SHALL GROW. – George S. Clason
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