This means making smart investment choices and refusing to invest too much of your money in the event of a poor stock market day.
The book focuses on protecting your principal capital from any kind of loss. You should start by making small but smart investments and take advantage of things like compound interest to their maximum effect. Money that is just sitting in the bank and not making you extra cash is essentially being wasted. Chances are you don’t really need whatever new thing you want to buy.Īnother key lesson from this book revolves around using your existing currency to make you more money. Avoid letting your mind tempt you into spending more money just because you can.
In the modern context, this means avoiding lifestyle inflation when you get a raise and continuing to live within your means no matter how much money you make. The second primary lesson revolves around controlling how much you spend. This will start you well on your way to saving a significant amount of money. The recommendation means you should save about 10% of all the income you earn, even if you are paying off debt. In essence, this means that you should pay yourself first. The first of these is arguably the book’s central point – “start thy purse to fattening”. A 3 Minute Summary of the 15 Core LessonsĪccording to the book, Arkad, the richest man in Babylon, shares seven major points that both individuals and general society can use to improve their financial growth and success. It provides financial advice through the lens of parables that are set in the ancient city of Babylon, which originally stood around 8000 years ago. The Richest Man in Babylon is a 1926 book by George S.