Want to become Rich? Read The Richest man in Babylon

We all want to become wealthy but is there an easy and practical solution for it? 

Before reading the book, I always thought there is no short and practical standardized way to become rich. But the book explained in a simple way, through which anyone can overcome their financial crisis and move toward becoming wealthy.

Many of you will find the advice of the author simple and easy to understand. But it is difficult to implement. If implemented correctly this guidance from the book can completely change your financial life.

Now let us start understand the main ideas from the book:

• A portion of what you earn is yours to keep: 

But isn’t all that we earn ours to keep? No, that is the one mistake we all make. What this principle state is whatever you earn you must set aside one portion (not less than 10%) for yourself. You must have the discipline not to spend this amount. If done for a long period this principle can do wonders for your financial freedom. 

Now the question arises but what if our expenses are more than our income? 

Then make a list of all your expenses and mark what is necessary and what is not necessary. Try to eliminate all the unnecessary expenses till you can save at least 10% of what you earn.

But what if all my expenses are necessary? 

Practically this is not possible. Think of it this way there are many people living on much lower earnings than you. So, think what if you had earned 10% less, how would you have lived? And plan accordingly.

• Always take advice from the persons who have some experience in that given matter. For example – if you take advice for jewelry business/investment from a textile worker then in the majority of the cases you will lose your money. So, take advice from the right persons for investments.

• Do not kill the children or grandchildren of your savings:                                                                       Compounding is referred as the 8^th wonder of this world. Let the compounding work for you. If you will spend the money you earned from your savings or investment then how can they multiply? So, whatever you earn through your savings and investment try to reinvest it and let compounding do wonders for you.

• Doesn’t luck plays an important role in becoming rich?                                                                 In the words of the author “To attract good luck to oneself, it is necessary to take advantage of opportunities”. Every human will receive enough opportunities in life. Those who grab those opportunities are called “Lucky”.  And those who don’t call others “Lucky”.       

“The secret of success in life is for a man is to be ready for his opportunity when it comes”

-Benjamin Disraeli

So to summarize the following steps can help you gain financial freedom

• Keep at least 10% of what you earn 
• Invest it in a safe place
• Grab the opportunities
• Let compounding work for you
• Repeat

The book explains all these concepts through beautiful stories. I would highly recommend everyone should read this book:

The Greedy Monk

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