The Richest Man in Babylon – George S. Clason

I have picked up this book from a random suggestion in one of my investment group chats and turned out to be gold. I enjoyed the archaic language used in the book. The principles on wealth management outlined in the book will remain same even after 500 years from now.

The golden rules to accumulate wealth art going to stayeth with me f’rev’r. ‘long with these i has’t did enjoy the archaic language hath used in the booketh. What an most wondrous booketh f’r wealth management first publish’d in 1926 and the laws still apply

If you are thinking I have forgotten English language, No !! I tried to write in the Archiac language using the help of google. What I mean is: The golden rules to accumulate wealth are going to stay with me forever. Along with these I have enjoyed the archaic language used in this book. What an amazing book for wealth management first published in 1926 and the laws still apply.

The principles in the book are timeless; here are the synopsis in simple terms:

1. Spend less than you make.
2. Use saved money to make more money.
3. Only take advice from people skilled in the trade
4. Only invest your money in industries and skills you are very familiar with or you’ll lose it.
5. Always work to achieve a consistent cash inflow. Do not wish for luck to win a jackpot or lottery.
6. All money will be lost if it put to foolish use
7. Put away 10% of all your earnings for savings and you wouldn’t even notice a difference in quality of life
8. Invest in your ability to earn more
9. You will loose money, if you let greed cloud your judgement
10. What you earn is not yours to keep until you invest it properly.
11. People who take action get luckier because they make their own luck.

The entire book talks about The Seven Cures for a Lean Purse and Five Laws of Gold. Below are the quotes as sourced from the book:

Seven cures for a lean purse:

1. Start thy purse to flattening
2. Control thy expenditures
3. Make thy gold multiply
4. Guard thy treasures from loss
5. Make of thy dwelling a profitable investment
6. Ensure a future income
7. Increase thy ability to earn

They five laws of gold:

1. Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
2. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
4. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
5. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.

-Bharat K Karumuri