Revisiting the Richest Man in Babylon

The Richest Man in Babylon is one of the personal finance books I think can change people's lives. It's an easy, fun read (because it's a story, not just a "regular" personal finance book), is inexpensive, and contains simple yet life-changing thoughts on personal finance. If you haven't read it yet -- do so NOW!!!! ;-)

Anyway, I haven't talked about the book for quite some time since I covered it in detail several years ago. But I thought it would be fun to share some highlights of the book -- for those of you who will not read it even though I just told you to :-) -- since it contains such great truths. In particular, I want to focus on what the book calls "seven cures for a lean purse." Here they are:

• Cure #1: Start Thy Purse to Fattening 

• Cure #2: Control Thy Expenses 

• Cure #3: Make Thy Gold Multiply 

• Cure #4: Guard Thy Treasures from Loss 

• Cure #5: Make of Thy Dwelling a Profitable Investment 

• Cure #6: Insure a Future Income

• Cure #7: Increase Thy Ability to Earn

Ok, seven may be a bit over-kill (but they're a good seven, huh?) I started with five principles myself (several years ago), then moved to three steps to get rich. But recently I've got the keys to personal finance down to two steps and am working on a single equation. Now if I can only help everyone get rich without doing anything at all, I'll be completely set! ;-)

Seriously, for those of you who haven't checked out the book, do yourself a favor and get it -- I'm sure your library has a copy you can borrow, so it won't cost you a penny. It's a good study and I'm thinking of reading it with my kids so they can start learning the basics of personal finance.

Comments

[Budgeting in the Fun Stuff]

I like your usual suggestions:

1. Spend less than you earn.
2. Save the difference.

[Nathan Martin]

This is one of the books I read every year. Sometimes the best advice in life is the simplest. Your 3 steps are right on too!

[azmil syahmi]

It true get this book. Its simple to understand and in a story form o you won't be bored. I found out about this book after reading Rich dad Poor Dad. Started and couldn't put it. Following it now I have cleared one credit card and two more to go. Have saving now can breath easily.

[Anon]

Government does not allow poor people to make of their dwelling a profitable investment.

If anyone knows of a government that does, I'd love to hear about it.