1. 1-Sentence-Summary:
1.1. The Richest Man In Babylon gives common sense financial advice which you can apply today, told through tales and parables from the times of ancient Babylon.
2. Favorite quote from the author:
2.1. "Advice is one thing that is freely given away, but watch that you only take what is worth having." - George S. Clason
3. 3 lessons:
3.1. Live below your means.
3.1.1. Wealthy people develop their riches mostly based on 2 things:
3.1.1.1. Living slightly below their means.
3.1.1.2. Investing the money they save well.
3.1.2. Living below your means is the first checkpoint you have to pass to even have the money to invest
3.1.3. You don’t have to stop drinking the occasional Latte or going to the movies. But you can still spend less than you earn.
3.1.4. You know best where you’re spending money just for the sake of convenience, entertainment and gratification, that’s really not necessary and that’s exactly the money you should be saving and investing instead.
3.1.5. The Richest Man In Babylon suggests you save 10% of your income to invest.
3.1.6. Look at your expenses and cut the ones that are really unnecessary and you’ll see finding those 10% is easier than you think!
3.2. Learn how to be lucky by working hard.
3.2.1. No one ever said luck was something that can’t be manufactured. We just expect it to be.
3.2.2. That’s something called chance. A random occurrence with very little likelihood of happening, such as winning the lottery or being struck by lightning.
3.2.3. Luck, however, is based on opportunity and you can create more opportunities by working hard.
3.2.4. Consider Jerry Weintraub’s story.
3.2.4.1. He called Elvis’s manager every day for a year to pitch him a tour he wanted to take Elvis on.
3.2.4.2. 364 times, the man said ‘No’. But eventually, on the 365th day, he said yes.
3.2.4.3. Jerry didn’t get lucky. He worked. Every day he called, until the timing was right and the opportunity presented itself to him. That’s how you become lucky.
3.3. Never take on debt.
3.3.1. This should (in theory) be a no-brainer for anyone, yet we find ourselves in a world where the average American is over $150,000 in debt.
3.3.2. One of the first steps to build wealth is quitting the irrational self-talk that makes you justify purchases you can’t afford.
3.3.3. When you go out and get a loan to finance a fancy car or a flashy TV, you’ll delay your journey to wealth for months or even years, because you now have to spend the money you save each month to pay off the debt, instead of being able to invest it.
3.3.4. Instead of solving your problems with loans, ask “how can I afford this?” and figure out ways to make more money or save more money, so you can buy the things you want.
3.3.5. Taking on debt has never solved any problems, it just creates more, so finish the spending spree and start saving!