I recently read a very old book called “The Richest Man in Babylon” by George Samuel Clason it was originally published in 1926 and although that may make you say – Outdated! Think again, the book has some great lessons of accumulating wealth and ensuring a life of comfort.

The story was originally a set of parables which featured two characters Bansir the chariot builder and Kobbi a musician. The two are best friends and over the years have become masters of their professions and are respected leaders in their community. Unfortunately, they have always been poor and even now continue to scrounge around for money to pay their bills and attend social events. Their childhood friend Arkad however, in contrast although lacking in any proficient talents had grown into a very rich and prosperous man. Bewildered by this, the two men seek out their friend to teach them some lessons about accumulating wealth and how to become rich men.

Set in the ancient city of Babylon, the three characters teach us some profound lessons we all can use to become financially stable.

Here are some lessons from Babylon:

Don’t underestimate the power of saving

Think of putting this money away as paying yourself in the future. “When I decided that a part of all I earned was mine to keep. And so will you.”   Although this is a very subtle message it is very powerful in accumulating wealth. A good amount of money to save is 10% of your income, if your new to saving start small and slowly increase it over the years. Take care of your future self and you will never go hungry.

 Live below the line

Many of us feel pressured by society, friends and even family to spend money unnecessarily by buying new shiny material goods to show off or gain some acceptance. Living below your means is difficult especially when it comes to social situations – resist from getting that new designer skirt, sports car or travelling on that holiday you know you can’t afford. You will thank yourself in the future – “Budget your expenses so that you may have money to pay for your necessities, to pay for your enjoyments and to gratify your worthwhile desires without spending more than nine-tenths of your earnings.”

Invest your money

The most fascinating science is compound interest – if you don’t know what that is. It is basically making money while you sleep. Investments can be a very scary idea for a lot of people but it shouldn’t be. Once you have saved enough money to be confident in investing, start researching and listening in on the conversations happening around you. In our current economy, we have many start-ups and entrepreneurs emerging looking to be funded or if you aren’t a risk taker there are many websites/apps that help you choose stocks to buy-in to. If that still isn’t what your looking for, have a chat with your bank on purchasing some bonds or opening a long term savings account like a “term deposit”.

If you want to learn more lessons from “The Richest Man in Babylon” watch the video below!

Share with us your stories and questions on money and finances @ editorial.team@studentview.com.au
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