In the Book Talk Series, We’ll talk about the books I read. I’ll also be posting my own commentary on the book along with the major takeaways. Today, We talk about a gem in Personal Finance, The Richest Man In Babylon and my experience with Money.
I have always struggled with money. Despite earning a decent amount of money in last few years, my finances were in shamble. In my desperation to get out of the situation, I watched innumerable videos on YouTube and read trending books on the topic. While some helped, most were too jargon packed to help.
One book that stood apart in terms of practical advice and the simplicity of the language was The Richest Man in Babylon by George S. Classon This book beautifully narrates the fictional anecdotes from ancient Babylon delivering gems of wisdom that have stood the test of time. This book doesn’t teach you any new ways of earning money. It talks about the fundamental problem in behaviour. So, The essence is not more money but managing first what you already have.
Additionally, The book talks about the most common mistakes that enthusiastic youth makes in their zeal to achieve wealth in short period of time. It talks about the complacent and lazy youth born to wealthy men. The rags to riches stories and their common foundation of hard work and industriousness. The debt, debt traps, credit score in its earliest form. Overall, even if the story is based in ancient times, everything relates to contemporary times. And nowhere you feel that it’s chronologically misplaced piece of literature.
What I gained from this book
It is the clarity around why my finances were messed and a simple yet clear way out : Discipline. Because of this, I was able to repay all my personal debts in last one year. The only debt remaining as of now is my Home Loan. For the foreseeable near future my only goal with my finances is to fully inculcate the teachings of this book. This book was a blessing in desperate times.
So, to put simply, this book is what my grandfather would have preached me about money had I gone to seek his advice. Time tested. Simple. Practical and most importantly DOABLE advice around money.
You should read this if,
- Your finances are fucked up for whatever reasons and you see no way out.
- You are unable to manage your existing resources and think more money is your solution.
- Money was not a part of discussion at home while growing up.
- You have debts and they are piling up. •
- You need a grandfatherly advice and handholding in the chaotic situation.
Summary in brief:
- Save 1/10 th of your Income. Pay yourself first.
- Live Below your Means.
- Make your Money work for you i.e INVEST
- Guard Your Treasure from Loss. Stay away from promise of exorbitant returns.
- Make your Home a profitable investment. It shouldn’t be a burden.
- Ensure Future Income
- Upgrade Your Skillset.
Albeit, one book might not drastically change your finances, but will surely change the way you look at your financial difficulties. That changed outlook will give you hope to overcome all your obstacles. Do read this book and let me know how you like it.
P.S. : It’s a small book, You can finish it in one sitting on a rainy Sunday. See you in the next Book Talk.