How to Get Rich – The Basics from “The Richest Man in Babylon” by R. Clasen

This is a book about how one man became even richer than the king of Babylon and how he did it. He is enlisted by the king to teach others so the whole city can be rich and he does. First he teaches them “The seven cures for a lean purse”:

1. Pay yourself first. For every $10 you make put $1 away for yourself. Or 10% of all you make. Live only off the 90% and let that 10% build up. Remember that 10% of your earnings is yours to keep and not to spend.
2. What you call necessary expenses will grow to match your earnings. You have more desires than you can gratify. Make a list of things you want. Then select those things you can afford with the 9/10ths of your income and forget the rest. These things go into your budget. Live from this and realize that no amount of extras will buy happiness. A budget helps you keep saving and controls expenditures for those 9/10 of your income
3. Put the money in your savings to work for you. That money should be making money for you so that you can multiply your savings automatically. You want a “golden stream of income that continues whether you work or travel”. As your capital increases in your savings continue to use that capital to make even more investments and money. Reinvest this. This money will continue growing and working for you. Put each dollar to laboring for you.
4. Guard your money from loss. First secure small amounts and learn to protect them before making larger investments. Study each assurance of an investment before loaning or investing this money. Basically don’t give it all up on get rich quick schemes.
5. Make your dwelling a profitable investment. Use the 9/10 of your income to own your own property. Don’t waste money on rent. These assets show lenders reliability. Work to pay it off and reduce costs so you have more of that 9/10 to spend on other expenses
6. Ensure a future income for when you can’t work anymore or need to take care of your family. Plan investments that will endure safely for years but will become available when needed. Buy land. Buy stocks or funds (401k).
7. Increase your ability to earn. Learn to perfect your abilities so that you can be paid more for your work. No need to ask for a raise, it will be given to you. Consult and exchange knowledge with others. Continue to improve your craft so you can continue to earn more. Pay your debts and don’t purchase things you can’t afford. Have a will so your family and things are taken care. Become more skillful to earn more and save more.

How to get Lucky with Money

One person comes into money and all others are wondering how they too can get rich quick. The teacher asks someone with this “get rich quick” experience to speak about it. Not one person can speak to this in a huge room full of people. Rather the person putting out the scheme collects from everyone. The house always wins… but if you find an investment cheap and make it more valuable, you can more than double your investment. This is a much better way to get rich or lucky. If you can’t afford the investment join with others and turn it into a group project to have a small piece of a bigger pie. If you have 1/10 of your earnings put aside you will more likely have money set aside to invest.

When opportunity presents itself be ready to take advantage of it or someone else will. Be decisive and do not procrastinate on your plans. Procrastination is the enemy of opportunity and accomplishment.

Procrastination is the enemy of opportunity and accomplishment

The 5 Laws of Gold (Of Greater Value than Gold Itself):

1. Gold comes gladly and increasingly to anyone who puts away not less than 1/10 of their earnings to create an estate for their future and family. The more gold you accumulate continues to grow and earns more.
2. Gold labors diligently and contentedly for the wise owner who finds profitable employment for it multiplying even as the flocks of the field. It is a willing worker and eager to multiply. Opportunity comes for men with gold.
3. Gold clings to the protection of the cautious owner who invests it under the advice of men wise in its handling.
4. Gold slips away from the man who invests it in things which he is not familiar or which aren’t approved by those skilled in its keep.
5. Gold flees the man who would force it to impossible earnings or who follow the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.

Abide by these 5 laws and gold will come and work as your dutiful slave. Test them in every situation that involves money and you’ll hold onto it. Without wisdom gold is quickly lost. With wisdom anyone can become rich and respected by men.

Wealth that comes quickly goes the same way. Wealth that comes slowly and diligently stays. Wealth is a small burden so those that bear that burden will benefit long term.

To get out of debt make a list of all your debts and make 1/10 payment to yourself, 2/10 spread between each of your debtors (after reaching out to them to ensure they agree and stop charging you interest until paid in full) and live off the other 7/10 with a budget.

Overall I thought this book was very relevant and is still relevant today. These rules are a simple way to pave the path to a rich estate. Save the infographic to remind yourself of these rules, grow, and keep your wealth!