When It Comes to Managing Your Money, the Old Rules Work Best
In an era of gimmicks and hype, this “ancient” guidebook stands above the rest
In an age of books that extol financial freedom and wealth, The Richest Man In Babylon stands out as a volume that promises financial freedom according to laying solid and simple plans, and following a few basic rules. The book’s lessons are as healthful and dynamic today as when the author first began describing his steps to wealth in 1926. I say this from personal experience as I have successfully used them myself.
“Pay yourself first” is the key (and often copied) lesson of George S. Clason’s guide, which he presents as a series of fictional parables from the Mesopotamian empire. Clason meant that you must set aside at least ten-percent of your earnings in savings — now a standard principle in financial guides — and dedicate the remainder of your money to paying down debt, procuring a home or other investment properties, buying insurance, caring for your family, and only then allowing yourself to spend on life’s pleasures.
His approach is one of thrift. “Every piece of gold you save is a slave to work for you,” one of his ancient characters says. He does not endorse asceticism; indeed he wants money management approached in a spirit of joy and adventure —…
