If you want simple and effective financial advice, in the shortest number of pages possible, then you will just love The Richest Man in Babylon by George S. Clason. A few years ago, whilst experiencing Rich Dad financial education a number of financial books were recommended by my course tutor, and one of them was The Richest Man in Babylon. It seems I forgot about the little gem until I was sorting through my library just last week.
The classic financial book weighs in at a miniscule 144-pages, but each one of them packs a financial punch soaked in rocket fuel. The point that the book quite cleverly demonstrates is that sound financial advice has been pretty much the same for an exceedingly long time. In fact, this book was originally released as a series of pamphlets way back in the early 1920’s.
It contains very easy to follow financial instruction that will aid you in both your business and personal life. The book weaves its financial advice in amongst the words of various parables set in the ancient city of Babylon in Mesopotamia. I just love receiving my education through the form of storytelling and this book delivered on that very note.
There are several lessons to be learned, but the one that grabbed my attention was the one where Algamish taught Arkad that part of all he earned was his to keep. ‘Pay yourself first,’ is advice I have read innumerable times in modern day self-help and financial literature, but there was something about the Babylonians that struck a chord with me.
Algamish was a wealthy man and Arkad sought the secrets to his success. His first piece of advice was to pay himself first, or as he put it, “a part of all I earned was mine to keep.” The advice was to save one tenth of everything he earned: blindingly simple but stunning advice. In my blog post Needy Helper Finance Step 1 – Making Peace With The Past I wrote about the importance of raising awareness of your ability to earn income, and included a task to understand how much money has past through your fingers, during your lifetime. When I completed the test I became aware that I have earned close to £1 million. If I had followed the advice contained in these timeless parables I would have £100,000 to invest at the age of 37. It’s such a shame nobody was around to hand me this advice when I was younger, but there is no time like the present and I have already started to follow the advice of Algamish and Arkad.
If you want to improve your financial awareness, and don’t like to read, then at just 144-pages this is a great choice for you and one I highly recommend.