 In the year 1926, George S. Clayson wrote the book The Richest Man in Babylon. The ideologies in this book are based on the principles and parables of the ancient Babylonians. Regardless of the number of decades that have passed, since it was first published, the lessons from this book are still relevant today. In this video, I will share with you 10 best ideas from the book The Richest Man in Babylon. 1. Save a portion of your earnings In the book The Richest Man in Babylon, a tale was narrated by a certain rich man, Arkad, who was invited to teach his fellow men how to amass wealth. The first lesson that Arkad taught his students was, For every ten coins thou placest within thy purse, take out one for use but nine. Thy purse will start to fatten at once, and its increasing weight will feel good in thy hand, and bring satisfaction to thy soul. When it comes to saving, there are two categories of people. The first set is those who spend first and save what is left, whereas the second kind of people save foremost and spend what is left. Almost 80% of Americans leave on a paycheck. That is, they follow the first approach, savings equals income minus expenses. However, the interpretation of the above lesson is that for every amount earned, you should learn to put out a portion, 10%, for yourself first. This concept is known as paying yourself. Many people save, but only few people pay themselves first. This book teaches us that we should learn to see the value of your work and prioritize paying yourself first. 2. Know the difference between your necessary expense and mere desires Budget thy expenses that thou mayest have coins to pay for thy necessities, pay for thy enjoyments, and gratify your worthwhile desires without spending more than nine-tenths of thy earnings. In this book, George Glaser noted that people feel like their income is not enough to cover all their expenses, because they confuse necessary expenditures with desires. When you cannot differentiate between your wants and your necessities, even if you receive a higher wage, you will always be in a position where your supposed necessary expenses proliferates to equal your income. This book suggests that you will be able to separate your needs from your wants through budgeting so that you can spend only on the things that matter and live within your means. 3. Make your money multiply Put each coin to labor in that it may reproduce its kind, even as the flocks of the field, and help bring to the income a stream of wealth that shall constantly flow into thy purse. Otherwise Babylonians saw money as a seed, which, if planted correctly, can give you a fortune. In order to multiply your money, you must make it work for you. If you would desire to be wealthy, then you must earn beyond your income. Instead of spending money to acquire depreciating assets like cars and big houses, this book advises that you invest in assets that will appreciate, like stocks, real estate, and building a side business. These passive long-term income streams will eventually generate money for you to live off when you are no longer strong enough to work for long hours. Through the power of compound interest, the money invested will yield more money for you. 4. Increase your ability to earn To cultivate thy powers, to study and become wiser, to become more skillful, to so act as to respect thyself. This lesson is one vital practice in the financial equation. If you want to be rich, then you must develop strategies to spend less and earn more. Experts have even suggested that it is better to focus on your earning ability and to pay attention to saving more. An increase in your earnings should imply an increased saving. The idea portrayed by this book is the importance of personal development. There are many ways to get more income. However, it all boils down to, as much as you can, you must invest in your skills and gain knowledge. 5. Guard your money from loss Consult with wise men. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from irrational investment. George Clayson states the need to be conscious enough not to lose money. Many people argue of this point because, of course, no one gets rich by playing safe. However, successful entrepreneurs do not just take risks, they are known to take calculated risks. One in Buffett, two roles of investing, are 1. Never lose money, and 2. Never forget role 1. This principle of Warren has made him be among the top 5 richest men in the world. The idea that this lesson gives is that you should take out time to seek the wisdom of people who have experience in the area you want to venture into. Building real wealth is usually a slow, steady process. Thus, you must be patient enough to solicit the advice of not just anybody but also an expert in that specific field of your choice. 6. Ensure your future income Provide in advance for the needs of thy growing age and the protection of thy family. This lesson asks, if you are sick and can no longer work, how will you survive? Or if you suddenly lose your job, how will you cope? Or if, as the sole breadwinner of your family, you die suddenly, how will your family members survive? Well, it is so easy to be spiritual and say, God forbid. Nevertheless, the reality of life is that it is a mystery. Hence, it will be best if you endeavor to make adequate plans and preparations for unseen situations. Making plans may include having an emergency fund, considering various forms of insurance such as health, life, homeowner, etc., and creating a retirement scheme. 7. Make from your dwelling a profitable investment Thus come many blessings to the man who own at his own house and greatly will it reduce his cost of living, making available more of his earnings for pleasures and the gratification of his desires. The wise Babylonians emphasize on the importance of owning a home. According to them, it makes more sense to make payments that will eventually become equity rather than giving money to a landlord. Also financial statistics have revealed that on average, homeowners accumulate more wealth over their lifetime than renters. However, this point is quite debatable as it is subject to personal finances. owning your own home is a good idea but it is also expensive to maintain as well. Thus, you must think carefully and choose only the method that makes sense for you at this point. 8. Good luck favors only those who take action Opportunity is a haughty goddess who waste no time with those who are unprepared and good luck waits to come to the man who accepts an opportunity. Many people believe that there are specific individuals who are born lucky and destined to be wealthy. They assume that luck is a supernatural force continually working in secret to weigh the scales down on one side or another. This book disputes that assumption and proposes that those who were favored are the ones who were able to see opportunities and take action. It iterates that only those who are hardworking will receive the reward of good luck. If you want to be successful, then you must always be prepared to grasp opportunity by the horns and move towards gratifying our deepest desires. Only then will you be able to attract good luck. 9. Pay off your debts No man respects himself if he does not pay his debts. The book suggests that you must try as much as you can to stay away from debts. It points out that debt can be avoided if spending is controlled and debt already accrued can be easily wiped out with consistency and discipline. Through one of the ancient Babylonian stories, George explains that the best debt solution is not to run away but to face it. Get a list of people you owe, meet with them and solicit their patience. Afterwards, you must develop a strategy for the repayment and stick to it. A practical method to pay off debt is to live on 70% of what you make. With 10% for yourself, use the remaining 20% to repay your debts. 10. Learning how to build and sustain wealth is more important than being wealthy. A man's wealth is not in the coins he carries in his purse. It is in the income he built it, the golden stream that continually flow it into his purse and keep it always bulging. This lesson summarizes all other ideas contained in this book. You are probably confused about the difference between building wealth and being wealthy. Well, here is what I mean. If for instance, two people have an equal amount of wealth, let's say $100 million. While one builds his wealth over 20 years by starting and growing a successful business and wisely investing his profit, the other won the lottery a few weeks ago. If both of these people suddenly lost all of their money, who do you think would have a better chance of rebuilding their wealth? Yes, you guessed correctly. The former has a higher probability of acquiring wealth again than the latter. Learning the habits that lead to wealth is an essential skill that would pay many dividends, irrespective of the amount of money you have at the moment. Babylon was the wealthiest city in the world at the time of its height because its people appreciated the value of money. If you want to amass wealth, then you must understand and abide by the laws of money.