The Richest Man In Babylon

Posted by Chee Keong on December 1, 2009 under Finance | Be the First to Comment

“If a man be lucky, there is no foretelling the possible extent of his good fortune. Pitch him into the Euphrates and like as not he will swim out with a pearl in his hand”

- Babylonian Proverb, P.55, The Richest Man In Babylon.

The Richest Man In Babylon, authored by George Samuel Clason, is by far the most important personal finance book I’ve read.

It’s written in the form of parables set in ancient Babylon. It espouses thrift, hard work and prudent investing.

The book addresses issues such as:

1) Why most people don’t seem to have enough money to spend even though they are hardworking, while others are able to accumulate wealth even though they are neither more hardworking nor more intelligent than average;

2) Why most people lost money whenever they invest, while a relatively few people are able to make money in whatever they invest in;

3) Why are some people always lucky? Is there a way to attract good luck?

Other topics discussed in the book are:

a) How to eliminate debt;

b) How to accumulate, protect and grow your wealth;

c) How to invest profitably and safely;

d) How to avoid the common pitfalls of investing.

Chapter Summary:

•             1.1 Chapter One: The Man Who Desired Gold

•             1.2 Chapter Two: The Richest Man in Babylon

•             1.3 Chapter Three: Seven Cures for a Lean Purse

o             1.3.1 The First Cure: Start thy purse to fattening

o             1.3.2 The Second Cure: Control thy expenditures

o             1.3.3 The Third Cure: Make thy Gold Multiply

o             1.3.4 The Fourth Cure: Guard thy treasure from loss

o             1.3.5 The Fifth Cure: Make of thy dwelling a Profitable Investment

o             1.3.6 The Sixth Cure: Insure a Future Income

o             1.3.7 The Seventh Cure: Increase thy Ability to Earn

•             1.4 Chapter Four: Meet the Goddess of Good Luck

•             1.5 Chapter Five: The Five Laws of Gold

•             1.6 Chapter Six: The Gold Lender of Babylon

•             1.7 Chapter Seven: The Walls of Babylon

•             1.8 Chapter Eight: The Camel Trader of Babylon

•             1.9 Chapter Nine: The Clay Tablets from Babylon

•             1.10 Chapter Ten: The Luckiest Man in Babylon

•             1.11 Chapter Eleven: A Historical Sketch of Babylon

I read the book many years ago and it’s philosophies have benefited me tremendously.

In fact, the book had changed my spending habit and my attitude towards money. I’ve become much more confident in handling my finances and I’ve also become a better investor. In my opinion this is a “must read” book for anyone who is interested in personal finance.

Do you have any personal finance or investment book to recommend?

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