Read/Listen to The Richest Man in Babylon

The book itself is written moderately simple, or at least the concept is easy.  Here are some of the things I learned from “The Richest Man in Babylon”.

1. Save 10% of your money and live on 90%. Even if you don’t think you can.  Try to use a split on your paycheck to move 10% to savings. Get the money there before you ever see it. At first it appears difficult to accept 10% less, but there are minor changes we can make to get closer. What is absolutely essential?

2. Enslave money then enslave its children. The language is weird, but it makes sense to have the money start to work for you.  Money is never an end; it is only a means, a tool. When you save the 10%, start to look at what means that money get you for assets and other investments that spawn more money. The “children” of the money earned, then goes back to work for you.

3. 5 laws of gold (think about it like money)

   1. Gold comes easily and in increasing quantity to the person who saves at least 1/10th of their earnings.

      1. The book repeats that a lot.

   2. Gold labors diligently and multiplies for the person who finds it profitable employment.

      1. This is the make the money work for you instead of work for money.

   3. Gold clings to the protection of the person who invests their gold with wise people.

      1. Don’t invest in things you don’t believe in or with others you don’t find smart enough to help you or trust whole heartedly.

   4. Gold slips away from the person who invests gold into purposes through which they are not familiar.

      1. Invest only in what you believe in, not what looks good or what you don’t understand. Like stock, invest in companies you like and that will stick around.

   5. Gold flees the person who tries to force it into impossible earnings.

      1. Beware the sinking ship. This is like spending a lot of money on lottery tickets.  You probably won’t win.

4. Do not live beyond your means. It reminds me of the Seneca lamp story. His lamp is stolen and instead of being upset about the value, he buys a meager lamp to read by.  You don’t need top-of-the-line 99.9% of the time.

5. 7 cures to lean purse- It’s a lot of the same points.

   1. START THY PURSE TO FATTENING

   2. CONTROL THY EXPENDITURES

   3. MAKE THY GOLD MULTIPLY

   4. GUARD THY TREASURES FROM LOSS

   5. MAKE OF THY DWELLING A PROFITABLE INVESTMENT

   6. INSURE A FUTURE INCOME

   7. INCREASE THY ABILITY TO EARN