The Richest Man in Babylon by George S. Clason offers easy to follow advice for managing one’s finances in parable form. This makes the read really interesting and easier to stay focused.
At only 99 pages, I was surprised how much financial guidance this book provided. Also, I believe this book takes a simpler approach to teaching a person how to budget without getting into too much detail like some other books on budgeting tend to do.
The book talks about the seven cures for a lean purse. These cures include paying yourself first, controlling your expenditures, making your money grow, safeguarding your investments from loss, making your dwelling profitable, insuring your future, and educating oneself.
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None of this is new or ground breaking, but I liked how the book organizes these strategies. There is no complex math involved here or complex spreadsheets.
Early in the book it touches on the importance of keeping a steady stream of income flowing. You probably know it today as a side hustle. Too many people tend to rely on only their job as the only source of income.
For example, I create and design various types of printable while by husband builds and sell rustic farm house furniture. Also, we have various other investments that generate income while we are not working. This way we have additional streams of income and don’t have to rely just on our job alone.
The first cure for a lean purse advises one to save one-tenth of their income.
You may know it as paying yourself first.
The second cure delves into the importance of controlling your expenditures.
This way you can see where every dollar is going. Later on the book moves into the topic of making your money multiply. It points out that it’s not in the coins one carries, but the wealth they build that continues to flow even when they are not working.
The next cure, and one I think was very important to remember, was guarding your wealth from loss.
It can take a lifetime to build wealth, but it can be lost in an instance. This is why you need to make sure the person or persons handling your money can be trusted.