The Richest Man in Babylon Summary/Notes

The seven cures for a lean purse

-A part of all you earn is yours to keep. Save at minimum 10% of all that you make. It shouldn’t affect your livelihood to do so and you’ll begin to fatten your wallet.

-Spend only on what’s necessary. As your income rises, it’s naturally that your expenses do as well if you allow them to. Make it your goal to realize that not all desires can be gratified, and to find fulfillment in desiring to be able to save.

-Compound interest. Put your money to work for you so that over time it continues to produce more and compound.

-Invest wisely. Don’t let the desire of making wealthy rapidly cloud your judgement. Allows have your principal in mind and to ensure you don’t lose it. Consult wise people who already have experience with investing and making money and gain insight from them. Focus only on what you have experience in or within your circle of competence.

-Own your home. Your rent goes towards owning it vs throwing it away, and at some point you will fully own it and only pay taxes, allowing you to reduce your cost of living/use it for other desires.

-Plan for the future, whether you’re in it or not doesn’t matter as it’ll be there for your family. Make investments that can compound over time for when you’re unable to work or have passed away.

-Master yourself, cultivate your powers by acquiring knowledge and experience and skills so that you can gain respect and confidence for yourself and ultimately attain your desires. Preceding accomplishment must be desire. Have strong and definite and specific desires to focus on.

Good luck is attracted to those who take advantage of opportunities when they are presented, without hesitating. Good luck follows opportunity, and favors action, rarely does it come otherwise.

If you lend to others, make sure that they have expertise in the venture they are pursuing with a plan. Make sure there is some form of collateral in the event things don’t go well so that you are guaranteed your principal.

Instead of lending to family or friends, try to help them in other ways so that you do not take on their burden.

“Where the determination is, the way can be found.”