Richest Man in Babylon
The book Richest Man in Babylon was written by George S. Clason which is a classic book known for its indigenous passion for self-help and wealth creation. The book is a revelation on the essential truths of wealth creation. The book was first not made like a book, but rather as different pamphlets which were later merged into a book. The book narrates and gives insights into the story. So it narrates how a young man negotiates with a rich person to mentor him. The wealthy man then starts teaching him the ways of wealth which are very applicable to anyone’s life irrespective of the time and age. The wealthy man makes fun of the young man when he fails, but the young man eventually gets the riches. There are a few things I learned from the book; they are as follows.
He talks a lot on the power of investing and saving, and one way this can be achieved is to spend less. A lot of people spend money on things they cannot afford or things they do not need. A lot of people when they get their paycheck they do not even think twice on spending every bit of that paycheck. Another one is using saved money to make money. There is saying only two things can make you money, skills, and money. One of the best ways to multiply your money is by investing the money you have already saved. Most people use their money on liabilities and depreciating goods like watches and jewelry or any merchandise which then hinders them from making more money in the future. A lot of the smart people are taking the money they save to either invest in their self or invest in another commodity. Another thing I learned is only to invest your money in industries and skills you are very familiar with, or you will lose your money. One of the fore reasons why people lose their investments is because they do not research before investing in the commodity they want to invest in.
Another good example is people who invest in skills that will be irrelevant in the upcoming years to come. That is just a disaster waiting to happen because you can get outdated easily. A good example of this is trying to do brain surgery with no knowledge or experience with surgery.
The next one to stop wishing for a lump sum of cash, instead, wish to strive to achieve a consistent cash flow instead. A lot of people wish for a lottery rather than wishing for consistent cash flow for themselves. The funny thing is if they invest that money they are using to enter the drawing for the lottery they have a higher chance of succeeding in a business they do not know rather than getting the lottery. What happens is that the money you win from a lottery could be easily blown by a few things, but when you build a cash flow system, it might take time, but it is worth it because of the way you can scale the business. I feel people need to understand where they place their money and see how money can multiply. I love the way Kevin O’Leary says it, “he treats every dollar as a soldier. He sends his soldiers to war to bring back prisoners (meaning more dollars).” What he says is very applicable, you have to see your money has a tool which can be used to generate more money regularly. So its very important to note how much you have now, and how much you are willing to let go to keep making more money in the future. Another lovely is investing in your ability to earn more. You must spend quality time growing and updating your skills and knowledge. This is very important especially in this 21st century with everything changing as algorithms change. People need to understand that even though they have graduated from school, they still need to continue learning. Most successful people always say they are constantly learning which helps to broaden their knowledge and helps in their day to day jobs. No matter the age of anyone, you just have to continue learning until you enter the grave, no one ever outgrows learning because the world keeps constantly changing.
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