Thay Richest Man in Babylon Book Summary B. George Classes - Task4B2B

The Richest Man in Babylon In this best-ever financial classic by George Clayson, the author shares a story about two friends, a charioteer and Kobe, a musician, both good at their trades. But they had no money like you.

One day Kobe got the idea to visit his childhood friend Arkad, who was the richest man in Babylon. That they don't have money to show everyone.

Throughout his life, he has followed the lessons that Arkady has provided in what he calls the Seven Lane Pass Remedies—wealth-building habits that anyone can follow to build a solid financial foundation, so today I'm with you.

Going to share them 7 Smart Wealth Building Ideas from the Richest Man in Babylon book

Smart idea #1: Is To Save At Least 10% Of Your Earnings

The biggest lesson in the book is that this is the first lesson. Arqad was in the same situation as Banseer and Kobi. A person without money was advised by a rich man who told him the secret of wealth in return for his work on a clay tablet.

His secret was that he found the way to wealth when he decided to keep a portion of his earnings and this could only be done by paying himself first before spending any money, meaning that by spending his earnings First put aside at least 10% for savings and investment, if you start with 10% you will benefit.

Don't even notice the difference, it won't make a significant difference to your quality of life. Set it up so that every month is automatic.

Smart Idea #2: Spend less than you Make

But common sense is not as common as most young people will openly admit that they spend every penny of their paycheck.

If this is also the case for you, sorry, but you won't get rich even if you make more money because you'll just pay more attention and go back to zero in the bank account, a concept mentioned in the book. 

That what you earn is not yours basically means to keep it. Just because you earn Rs 10,000 doesn't mean it's really yours because you immediately spend it on things like rent, clothes, so it's actually theirs when you spend it. Start spending less.

Start doing positive things. To be number one, you start draining your depth. Number two, you start saving.

Number three, your stress level drops to number four. , before you are able to find prospects close to you,

So keep this rule in mind to maximize the gap between what you earn and what you spend, whatever you do. Taking action will more than likely take you to a better place in your life.

Smart Idea #3: Use Saved Money to Make More Money

This is perhaps one of the golden truths of wealth creation that has been described in many classics. Their mission is to capture as many soldiers as possible and work to capture those soldiers.

Even more troubling, most people are spending money on things that rust or have zero value, including houses, cars, boats, clothes, watches, jewelry, or anything else you've bought from someone else.

What smart people are doing is taking every dollar they save and spending it on something that will make them more money. They are skilled or can understand it.

A basketball player can spend it on basketball lessons. A businessman can spend it on a small business that will make him more money.

Money Warden Buffet has done this since he was a kid, buying soda from a store and selling it to people in the summer for many times that price. ly worked to purchase pinball machines and set them up in restaurants.

He split the profits 50-50 with the restaurant owners. He gradually worked his way up to bigger and bigger businesses until he became the richest man in the world.

Smart Idea #4: Avoid Investments That Sound Too Good To Be True

There's a difference between dreaming big and letting your greed influence your decisions. Can make a business of it was done before crazy things.

But that doesn't mean you should buy the promise of someone who offers you a magical return of millions with a one-time investment, which is a scam.

Many billionaires like Sam Walden and Warren Buffett were always very conservative with their investments.

Build slowly versus rushing into an opportunity with a dangerous downside. When someone promises you a perfectly good return that sounds too good to be true, it's not always a scam, but often, the author also warned.

If you invest or use Money in business you are not familiar with or people who are not good at something you will lose. For example let's say you don't know much.

Investing in real estate is like throwing it out the window. Because it's easy for people to mislead you, you should only seek advice from people skilled in the field if you invest with people who tell you what you want to hear but know intimately.

Doing nothing about the industry will waste your money. For example, ask a tailor for advice on jewelry. What does this person know about jewelry.

So if you plan to invest in jewelry. If so, just take advice from an expert jeweler who has spent a lot of money in this field

Smart Idea #5: Own Your Home

In this book the author encourages us to own the house we live in not only to reduce our cost of living but also to have a sense of accomplishment.

And for most of us owning our own home is one. A dream come true however it may mean taking a mortgage from the bank as the author emphasizes that maintaining a balance between owning your own home if the house payment will not exceed your earnings and savings. put it.

And paying off the mortgage without going broke should be the first consideration because having a place to call your own makes your family more comfortable.

Your kids can play and go wild. Now you can do it for your family. Lenders and banks will also lend to you more easily if you own your own home, you reduce your cost of living and if you own your own home, you improve your cash flow.

Smart Idea #6: Have a Retirement Plan

You can only work so long that there will be a day when you lose your earning capacity due to illness injury and if you are lucky due to old age.

So it's important to make sure you think about your assets.

There will come a time when you can't support your family by working, so you need to have a retirement plan in place.

A specific analogy is given in the book about how a saddle maker named Ansan collects two pieces of silver for eight weekly.

A moneylender charged an annual interest rate of 25% every four years, which comes to about 6.25% per annum after eight years.

Ansan had a total of 1040 silver tolas. Orchid advised him to keep collecting. Two tolas of silver every week for the next 12 years. After that, Ansan took Arkad's advice and continued to invest.

Tomorrow, after 20 years, the moneylender told Ansan that his money had increased to 4000 tolas of silver, so you should also list it.

Ten to Arkad He just taught you Compound Interest Again I have already shared the same concept in one of my previous posts on investing in index funds.

If you haven't seen it yet, make sure you do. Check the link below.

Smart Idea #7: Invest In Your Ability To  Earn More

Arkad started this segment about a young man who came to borrow money from him. When Arkad asked why he took the loan, the young man said that,

He has to pay his bills, his height asked why?

He replies that he doesn't earn enough to cover his expenses, Arkad bluntly tells him that you need to increase your earning capacity and refuse to take a loan from him as the bank did.

However, there are two big lessons you can learn here.

1. Don't lend your money to people who can't pay it back, but help them find a way to improve their earnings.

2. Don't take money foolishly to continue to grow what we earn.

One of the best ways is to invest in ourselves. This means you should invest your time or money in improving your skills knowledge and earning potential, most people stop learning at age 21 when they finish school.

Others are lifelong learners, continuing to learn until they die at age 98 and improving, giving them huge benefits over time while the average worker spends a lot of time watching TV.

After goes home and does nothing to improve himself and splatters his brains, you can go on improving yourself a little bit every day, so here are the conclusions.

7 Smart Ideas We Learned Today From This Post If You Want You Can Pause The Post And Take A Screenshot If I Have To Summarize The Entire Book In Two Sentences It Will Save And 10% Of What You Earn Can connect with people.

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