The Richest Man in Babylon
Rich Robison
Hope everyone out there is doing well.
If you haven't heard of it, the Richest Man in Babylon is a pretty old
book (~80 years), but has simple and timeless advice for your personal
finances.
I read it a while ago, and took notes, as I do with most financial books.
Thought this might come in handy for you.
-=-
The Richest Man in Babylon
first step: seek gold
mantra: A part of all I earn is mine to keep
7 cures for a lean purse:
1. Start thy purse to fatening (keep 1/10 of earnings)
2. Control thy expenditures (keep within 9/10 of earnings)
3. Make thy gold multiply (wealth is income)
4. Guard thy treasures from loss (invest where the principal is safe)
5. Make thy dwelling a profitable investment (Own your own home)
6. Insure a future income (Save for retirement and buy insurance)
7. Increase thy ability to earn (Increase knowledge and skill)
Five Laws of Gold:
1. 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.
2. Gold laboreth diligently and contentedly for the wise owner who
finds for it profitable employment, multiplying even as the flocks of
the field.
3. Gold clingeth to the protection of the cautious owner who invests it
under the advice of men wise in its handling.
4. 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 who are skilled in its keep.
5. 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.
To get out of debt:
1. Live on 70% of your income
2. Use 20% to pay off debts
3. Set 10% aside for yourself
Proverbs:
* seek help from competent expertise
* Good luck can be enticed by accepting opportunity.
* Better a little caution than a great regret.
* Where the determination is, the way can be found.
* We cannot afford to be without adequate protection
--
If a man points at the moon, an idiot will look at the finger. -- Sufi wisdom
Andrew Szemiot
Yes, very solid, timeless advice. I believe you can apply this thinking
as a simple, work-and-save for retirement that works for the general
population, or you can consider it as something along the lines of,
cashflow speaking, a way to determine how best to allocate various
investments. For those creating cashflow by passive income, the only
addition to these rules is creating investments for yourself with other
peoples' gold (from banks, venture capitalists, etc.).. however, most
importantly is to seek some form of investments where the principle is
safe and dangerous risk (of any degree) is minimized. Those who stretch
themselves with others' gold (and their own) are taking unnecessary
risks and gambling with the gold.
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