What I learned reading the Richest Man in Babylon
What I learned reading The Richest Man in Babylon
Welcome back to getting your crap together with Kristi! I'm really excited because today we're going to be talking about money, specifically the secrets to building wealth.
Welcome back everybody and today we're going to be going over a really cool book called “The Richest Man in Babylon “ and, I will tell you this book is over a hundred years old but the principles in this book still apply it's a funny little book because it takes place in Babylon and there are some weird names in the book but trust me to hang in there it's a very short read and essentially it breaks down the secrets to building wealth and how to manage your money in a story format so it's a bunch of small parables that are going to break down what he calls the five laws of gold and the seven cures for a lean purse that's why I thought we would dive in today let's go over some of the seven cures of a lean purse.
The first cure to the lean purse or the first thing that you can do if you don't have a lot of money is to save 10 of everything you make basically this is the foundation of this book when you understand that you pay everybody in life right you're paying the grocery, you're paying that for gasoline, you're paying for your automobile you pay everybody else out of your check but did you think to pay yourself the person who's working to earn the money that is the very first cure to what to do when you don't have a lot of money and probably one of the hardest ones for us to accept because it is pretty simple and he gives us some additional insight how to do that but if I had to stress one of the most important parts of this book it is absolutely coming back to make sure that you're saving 10 percent of everything that you earn.
The second part of the second cure for a lean purse is that you need to be able to distinguish between your needs and your wants that's where a lot of us end up going into debt we get mixed up between I really need this or I really want this right and he says don't go into debt for any reason because once you're in debt right so let's say that there was something that you really wanted and so much that you felt like you needed it but let's say there was something that you really wanted and you ended up having to go into debt to get it the problem is that now you're going to be paying interest on that and once you're in debt it's harder to work your way out so distinguish between your needs and your wants and if there is something that you really want just save up to buy it don't go into debt to get the things that you want.
The third cure is to invest wisely and he's got some great stories in this book about mistakes that he made and I think that we can all realize a time in our life when we invested our money in the wrong thing right I know that there were some painful times in my life where I basically put my trust in somebody and I lost money did I learn from it absolutely so he gives a really great example in the story about the brick bait the brick maker he was going to a distant land and he gave all of his savings to the brickmaker because the brickmaker was going into Persia and was going to buy these fine gems well what happened is the brick maker really the best person to be buying gemstones no right he's qualified to buy the materials for making bricks so he gives examples to make sure that you seek out the guidance of people who know what they're doing and when you invest your money you know just don't ask the baker to buy you the best steak right you go to the butcher to get the best steak.
The fourth cure is to own your own home pretty good because since i'm a realtor i definitely believe in home ownership but specifically talks about home ownership and how it can help you build your personal wealth in fact if that's something that you're curious about you know how can i use my own home to build my personal wealth please make sure that you reach out to us because we help people all the time do this we've got so many success stories of people that are now owning homes for less than the cost of renting so definitely own you own home the next one he talks a lot about is when you don't have a lot of money but you have a skill you need to work to improve your skills the more fine-tuned knowledge and specialized skills that you have the more you can charge for that and the more valuable you become to your boss which will allow you to make more money so invest in yourself which is why you're here right like that's what my show is all about is personal development investing in ourselves to become the best version that we can.
The sixth one is all about procrastination and luck basically procrastination will kill your dreams if you have an opportunity it's so important that you look for those opportunities to advance your skills advance your career and then you seize those opportunities don't procrastinate if there's something that you know you should be doing do it don't wait now he does say that luck can be earned right you probably can think of somebody in your life that you're like oh yeah sure that person has everything they're so lucky and he talks about luck luck is fickle but luck can be earned by looking hard and working hard for to find opportunity so is there any such thing as luck there is but essentially it's up to you to work hard so that you have the opportunities that you need to become lucky the last cure to help you become rich when you don't have a lot of money is he says don't spend your money as soon as you earn it basically think about this how many of us just work to earn money right we live paycheck to paycheck and that's a problem because you can't become wealthy when you just work to earn money you have to take some long-term investments he gives a really good example of the character in the story he talks about how he saved up all this money and then he put on a big feast and and his mentor says you just ate all of your future earnings why would you do that so don't spend your money as soon as you earn it invest wisely get your money to work for you and he spends a lot of time on different strategies and tactics that you can use to get your money to work for you but essentially all it comes down to guys the secret i promise you we'd be talking about the secret the secret to building wealth is to save your money and then invest it wisely the richest man in babylon like i said it was it was written a long time ago in fact you can listen to it on youtube for free if you just google on your if you youtube the richest man in babylon you can listen to the audiobook for free i absolutely recommend it for all ages just some simple money tips that really can go far again if you've liked this show and you want to see more of what we're doing make sure that you subscribe to our youtube channel like us on facebook and follow us on instagram thanks so much guys, we'll see you later:)