Book Review- Richest Man in Babylon

The book Richest Man in Babylon has been recommended by many. It’s been on my wish list ever since I read Barbara Stanny’s Overcoming Underearning.

So, of course I wanted to share my review of the book.

Rating

5/5 stars

This is an amazing book. The core principles of money are easy to follow along although hard to implement in reality. It needs loads of discipline and determination. If there is one book on money we all need to read, this is it.

The story style is engaging and even though some of the laws are repeated, the characters keep you hooked.

The book is so amazing- I have to immortalize the wonderful rules of personal finance that every person should know.

Seven Rules of Riches
1. Earn, Save , Spend

Save at least a tenth of what you earn. And then spend. Simple and miraculously- works!

It is hard though… as is the first step of every difficult but amazing prize!

2. Budget

Document what you spend on. You will learn what you spend on. It might not be to your liking but you will know.

Then allocate your money such that you have have ample funds for necessities and to fulfill worthy desires – NOT casual wishes. All the while, continue to save a tenth or more.

3. Make your money grow.

Invest your money and keep going. Do tap into power of compounding.

4. ABC- Always be Careful

Guard your money such that the principal is always safe and can be reclaimed. Don’t get lured into quick rich schemes. Seek the wisdom of those who know to handle money expertly.

5. Own your home.

Build and invest in your own future. Instead of plowing money into a rental, put it to good use to build your own asset and place of pride.

6. Invest

Invest for your future, for retirement, for aging needs and for dependents. Make a list and get a realistic number so you know what you need to build up to and by when.

7. Grow Your Mind

Cultivate your own powers, study and become wise, become more skillful and more confident to achieve more of your own desires.

As ever, let me know in the comments if you read the book. What were your thoughts on the book? If not, will this review entice you to check out the book?