Quote Of The Week

"Freedom for Everybody or Freedom for Nobody"
Malcolm X

Tuesday 10 May 2011


The Richest Man in Babylon - The Success Secrets of the Ancients, by George S. Clason

One word to describe this book? TIMELESS!

The book is to personal finance what Security Analysis by Benjamin Graham & David Dodd is to securities investing.

It is written in a series of financial parables. These stories are set in ancient Babylon but have basic tenets of how to get ahead financially in any time, not just in Babylonian times or in the 1926 when it was first written.
Each man in the story struggles against himself on having self-control and discipline on spending and handling wealth.

The Richest Man in Babylon encourages developing a saving habit from a young age and regularly investing this money prudently.

Sacrifice is also encouraged by individuals and people should postpone luxuries now so they can enjoy them and financial security later

The Richest Man in Babylon is divided into several sections. I will briefly discuss two of the core sections.

Seven Cures for a Lean Purse

Start thy purse to fattening: Take one-tenth of what you bring in and save it for the future. The book uses a coin analogy: for every nine coins you spend, take one and put it away for yourself. This is very sensible; a goal all of us should have.

Control thy expenditures: This encourages budgeting for your expenses so that one can pay for his/her necessities and enjoyments without spending more than nine-tenth of your earnings.

Make thy gold multiply: Once you start to build up some savings, invest that money so that it will make more money for you.

Guard thy treasure from loss: Guard your treasure from loss by investing only where your principal is safe and where it may be claimed if desirable.

Make of thy dwelling a profitable investment: Own your own home

Insure a future income: Invest for life after work and your family’s well being after your passing.

Increase thy ability to earn: The more of wisdom we know, the more we may earn. That man who seeks to learn more of his craft shall be richly rewarded.


The Five Laws of Gold

Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.

Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.

Gold clingeth to the protections of the cautious owner who invests it under the advice of men wise in its handling.

Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.

Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
As I said earlier, the principles outlined in this book are timeless and can aid in the GRADUAL creation of wealth in any era.

Follow the link to download the free e-book: THE RICHEST MAN IN BABYLON

A link to another classic, The Intelligent Investor: THE INTELLIGENT INVESTOR


If you’ve never read the books, start downloading!

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