In 1926 George S. Clason started to publish a series of parables set in ancient Babylon(4000 BC). As these parables stressed a lot on the idea of investing and reinvesting, banks and insurance companies of that time distributed them heavily. Soon the series went viral. And due to its popularity in masses the series was compiled as a book. The reason of its popularity lies not only in the way author expresses himself but also In the sound ideas which are as relevant today as they were in 1926. So without further ado, here are the 10 big ideas from 'The richest man in Babylon' by George S. Clason.
#1 General desires are but weak longings.
How much do I want? Ask yourself this question before everything. If you want a lot of money it won’t cut it off. What you need is something tangible and definite. For instance you can say I want $1000 now that your desire is backed with strength and purpose to secure it, Shoot for 10,000 then hundred thousand then 1 million but it must start with small and definite desire and you will train yourself to secure a larger one by becoming more capable. You should start small and then build on top of that.
#2 Where the determination is the way can be found.
Now that you have that small desire to earn a definite sum. You will find a way to make it happen or the way will find you. Keep your eyes open for good opportunities and when they come don’t hesitate just grab them.
#3 Wealth grows wherever men exert energy.
It’s about the redistribution of wealth as author says, "If a rich man builds him a new Palace, is the gold he pays out gone? No, the bike maker has part of it and the labor has part of it and the artist as part of it. And everyone who laborers upon the house as part of it. It when the palace is completed, it’s not worth all it cost? And is the grounds upon which stands not worth more because it is there? And is the Ground that adjoins it worth more because it is there? Wealth grows in magic ways." No man can prophesy the limit of it but one thing is for sure that wealth grows wherever men exert energy.
#4 Man of action are favored by the goddess of luck.
Every man here on the earth has been tricked by procrastination at least once in their life. We all feel that mental inertia. These feelings trigger us into not taking any action And then we look in the past and say I could have done this, it just slipped through my hand. I don’t believe in luck but I do believe in action I think that everything in this world is governed by the actions that we take.
#5 A part of all you earn is yours to keep.
I think this is the most fundamental principle of wealth creation. Whenever a person earns, he spends which is fine. We all should enjoy our time here on this planet. The problem arises when he thinks that he is spending the money on himself but in reality he is giving the money to others. This is mandatory for an economy to exist but if he gives away all of it. He can never become wealthy. From now on whenever you get a pay check keep a part of it for yourself and then only spend the rest. This is the first step in the way of becoming the man you want to become financially.
#6 Do not Overstrain.
As stated earlier enjoy your time here on earth, do not over strain.10% is a good amount to keep for yourself. It may seem small in the beginning but when your income will grow this amount will also get bigger. Moreover it is important for perseverance as well.
#7 Learn to make your treasure work for you.
Now that you have saved. You own a little treasure. Don’t let it sit idle get it to work for you. the whole point is to invest the money that you have saved so that it can make more money on its own. Then make its children work for you. The children of your treasure is the money that it has made over a period of time in the form of dividends or profit. Invest and reinvest, that’s the name of the game.
#8 Guard your treasure.
If you don’t protect your treasure you will surely lose it like Arkad, the richest man in Babylon did when he invested his hard earned money in Jewel business of which he knew nothing or little about. Always invest your money in a business, you have adequate knowledge of. Counsel with men who are in that particular business. When you feel that you have gained adequate knowledge, invest.
#9 If you desire to help thy friend do so in a way that will not bring thy friend's burden upon thyself.
A friend in need is a friend indeed and one should help once friend whenever the need be. But when it comes to financial help you are in a different ball game altogether. You can go with either one of these two approaches.
A. Land with the intention of never getting it back.
B. If you are helping a friend establish his own business venture, do the research as you would have done for your own business.
#10 Insure a future income.
'It behooves a man to make preparations for suitable income in the days to come when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them.' In the present times there are a lot of ways one can insure a future income conveniently. Like investing in a scheme where the money can compound. A future income is guaranteed until and unless, you invest wisely.