The Richest Man in Babylon: 7 Key Takeaways (& My Review)

Below is another book review installment from Rachel Stephens. Rachel {is really a} 20-something financial analyst.

In the book billed as “the Bible of financial freedom,” George Clason shares a timeless {group of} principles in The Richest Man In Babylon. His goal, {to supply} insight to “{those people who are} ambitious for financial success,” is achieved through simple storytelling.

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The book’s other main lesson {may be the} “five laws of gold” that Arkad teaches his son. {The initial} three laws list {methods to} build wealth {and so are} fairly repetitious with {the aforementioned} principles. Namely, the laws mandate paying yourself first, investing {your cash} well, and making informed investment decisions.

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The remaining two laws describe {ways that} money and wealth {will undoubtedly be} lost. Specifically, it mentions avoiding investments with which {we have been} unfamiliar, {attempting to} seek ‘usurious’ returns, or trusting our ‘romantic desires in investment.’ Overly-complicated portfolios {will probably} fail. Given {all of the} Ponzi schemes {which are} surfacing {nowadays}, these lessons especially hit home {at this time}. {It isn’t} the sexy investment strategies that win, for {they are} the investments {which are} often least understood {& most} risky.

The remainder of the book is peppered with lessons and insight. Choose wisdom over money. Borrow sensibly, {because the} unintelligent {usage of} debt {will certainly} {turn into a} later burden. Seek luck by {spending so much time} and accepting opportunity, not by {looking forward to} one-off successes. And {the best}, “{where in fact the} determination is, {just how} {are available}.” Commit, {continue}, {and revel in} your successes.

The book {could} feel simplistic and repetitive, {however the} advice about earning and savings are sound. By its nature, a book {that’s} set in {the times} {prior to} banks and organized markets {will likely be|will probably be|will be} sparse on details. {This is simply not} the book {to learn} {if you are searching} for a how-to guide or specific techniques. Rather, {it is a} book that {requires a} theoretical {method of} examining personal monetary policy.

At {significantly less than} 100 pages, The Richest Man In Babylon {is really a} quick read. This book {will be} {a fantastic} choice {for individuals who} {react to} qualitative motivation and storytelling. {It could} also {be considered a} particularly pertinent book {for all those} {that could} feel overwhlemed by the {all of the} recent market turmoil. If this book accomplishes anything, it demonstrates that {the essential} truths to wealth building {remain} applicable today.