“The richest man in Babylon” Essay

Introduction

The book study is about a book named _The Richest Man In Babylon. The Richest Man In Babylon. _ written by George Samuel Clason. is a book about direction of personal finance through a aggregation of fables set in ancient Babylon. The narratives are laid out like Aesop’s fabrications: each narrative has a concrete point or two that becomes evident from reading and digesting the message. These points are basic dogmas of how to acquire in front financially in any clip. non merely in Babylonian times or in the 1920s.

In Babylon there is a adult male who is wealthier than all and there is another hapless adult male profoundly interested in how he has achieved such position so he begins to do day-to-day visits to his house on the hill. conveying others along. to larn the lessons that created such wealth. The affluent adult male is unfastened to portion his keys to success and the others intently listens as he tells narratives and experiences in his life that get across the most cardinal techniques of personal money direction. nest eggs and investing.

What the affluent adult male portions to the populace is collected in different narratives. The most popular narratives are _Seven Cures for a Thin Purse_ and _The Five Laws of God_ . These two narratives provide practical points for pull offing personal finance by seven methods and five Torahs.

The lessons which the hapless adult male had learned and applied to his life were singular. and this slave had managed to turn his life around by using the rules and lessons he had learned. He had documented everything he had learned and his advancement on clay tablets. which were subsequently found in the 1930’s by archeologists and professors at a university. These professors had so learned of these rules and applied them to their ain lives. to besides go affluent and financially abundant.

Reappraisal

Feature of the book

This book touches on the basicss of personal finance and reminds us of the simpleness and subject that have proven successful for 1000s of old ages. Clason takes a originative. yet simple story-telling attack to learn the reader the rudimentss and the foundation of how to cautiously construct wealth over clip and go financially successful.

In comparing with similar books

In fact. many popular finance books such as _The Wealthy Barber_ or _The Automatic Millionaire_ are based on rules from this celebrated book. In fact. in the _Millionaire Mind Intensive_ they talk about apportioning your money in a similar manner that George Clason references here. Either manner. it’s good to hear these methods once more and once more to remind ourselves of these antique rules. We may cognize something intellectually. but practising it is a whole different narrative.

Impressive methods of wealth direction

What impresses me the most is the narrative of _Seven Remedies for a Thin Purse. _ The narrative _Seven Cures for a Thin Purse_ relates a narrative about Arkad. the titular richest adult male in Babylon. He is requested by the male monarch to learn a category to anyone who wishes to go to on the methods he used to construct his wealth. He divides this category across seven yearss. with each twenty-four hours concentrating on a peculiar method for salvaging money.

Here are the seven methods in the narrative: 1. Start thy bag to fattening ; 2. Control thy outgo ; 3. Make thy gold multiply ; 4. Guard thy hoarded wealths from loss ; 5. Make of thy brooding a profitable investing ; 6. See a future income ; 7. Increase thy ability to gain

Below are the methods that impressed me a batch

Start thy bag to fattening—-Pay Ourselves First

The book recommends that we pay ourselves 10 % of all that we earn. We can non roll up wealth if we do non salvage what we earned. We can make that by paying ourselves foremost and first before we spend any of the money we have earned. It is the same as the U. S. authorities. It takes revenue enhancements on our rewards before we can acquire to it. The U. S. authorities ( IRS ) knows this jurisprudence good.

Guard they treasures from loss—-Insurance protects our wealth

Insurance helps safeguard our wealth by absorbing possible loss and extenuating our fiscal state of affairs. There are many sorts of insurance we can purchase and we should make our research on which one and how much we need. A renter’s insurance or a homeowner’s insurance helps protect our places. Another sort of insurance is long-run insurance which become suited to assist us as we grow older and assist protect us from medical disbursals and long-run attention.

We should all see purchasing insurance now in instance we need it if something happens. This is a proactive attack and one we should take and non bury. The thought is that we will ne’er hold to utilize the insurance but in instance something does go on we are protected financially from the loss it would hold caused.

Increase thy ability to earn—-Invest in ourselves

The best manner we can increase our gaining is by puting in ourselves. We can make that by continually larning and endeavoring to develop ourselves. We are now in a really exciting clip: the Information Age where cognition is literally within our fingertips thanks to the Internet. I truly love the OpenCourseware thought where many schools including Ivy Leagues post their whole category classs for free. It’s a great manner to larn on our ain.

There are many things we can larn on our ain and should endeavor to do ourselves all-around. Whether we learn to eat healthier. heighten our current work accomplishments. or larn to do more money. we must take the enterprise to put in ourselves. When we become smarter and wiser. our ability to gain more besides increases.

Make of they brooding a profitable investment—-Our place is our biggest disbursal

I know that many think their places are an investing but the truth is it truly is non. It is an disbursal and a really high disbursal at that and one we must pull off carefully. We should larn to pull off the largest disbursal cleverly. Many of us have decided to take on a immense mortgage to purchase our place and after the existent estate bust many were left with places that lost their value and in many instances were submerged. I believe the lesson we can larn from that was that we needed to ‘live below our means’ and purchase or lease a place we can comfortably afford.

More subject to accomplish wealth accretion

Many people followed the schemes in this book to go affluent in existent life. Take warren Buffett as an illustration. He has been salvaging money since he could walk and to this twenty-four hours he controls disbursals more strictly than the great bulk of the in-between category. yet he is deserving some $ 60 billion. And we should all cognize that he has followed the last three methods of _Seven Remedies for a Thin Purse_ . That’s what keeps him from puting in so many of the things that lead to destroy.

However. most people around are still overspending despite historical successful illustrations of wealth accretion. Even those who make half a million or a million a twelvemonth still pull off to allow their disbursals run wild and don’t possess the subject to salvage. Almost everyone around is in the same rat race-Make money so as to pass more money so you need to do more money. We need more subject to set ourselves frontward to good disbursement wonts and wealth direction schemes.

Typical subject includes: doing personal balance sheet and proctor alteration in monthly sum ; pass oning with friends around about wealth direction methods and promote each other to develop good disbursement wonts.

Decision

_The Richest Man In Babylon_ provides readers with edifying thoughts to pull off personal wealth. The writer uses originative story-telling attack to bespeak direction schemes. The narrative of _Seven Remedies for a Thin Purse_ educates us to 7 methods to roll up our wealth. which is practical and executable in our life.

At first glace it’s easy to discredit these as simple common sense. But the thing we should all be cognizant of at this point is that common sense is non common pattern. As I reread through some of these cardinal points. I realized that affluent work forces. which are minority of the universe. have great pattern in wealth accretion.

However. the bulk of the society has non developed good wonts in roll uping wealth. It is of import to take action from now to organize the wonts and acquire rid of excessive behaviour. If you have your subject of what actions accumulate wealth. so behaviour of the crowd will non deflect you from your ain route to accomplishment.