The Richest Man in Babylon: Save a Portion of All You Make

Here's another thought from The Richest Man in Babylon:

Each time I was paid I took one from each ten pieces of copper and hid it away. And strange as it may seem, I was no shorter of funds than before. I noticed little difference as I managed to get along without it. But often I was tempted, as my hoard began to grow, to spend it for some of the good things the merchants displayed, brought by camels and ships from the land of the Phoenicians. But I wisely refrained.

There are three main thoughts here (stated or implied):

1. Spend less than you earn.

2. Take the surplus generated and invest it.

3. Don't touch it -- let the power of compounding work for you.

In the end, if you spend less than you earn and do it over a long period of time, you can become very wealthy. That's the heart of this book and why I love it so much.

Comments

[Anonymous]

My wife and I get along very well on financial issues. We're selling some stuff and we're going to have a chunk of change available. A couple of nights ago, we discussed how to use the money. Spending it didn't even hit the radar. We just discussed where we expected to get the best return.