book summary: the richest man in babylon by george s. clason (part 2)

Welcome to Ancient Babylon

Babylon is widely considered a wonderful example of the ability of man to achieve incredible accomplishments, using whatever resources are at his disposal.

Money is the medium by which earthly success is measured.

Money makes possible the enjoyment of the best the earth affords.

Money is plentiful for those who understand the simple laws which govern its acquisition.

Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon, 6000 years ago.

The Secret to Becoming Wealthy

When it comes to managing personal finances, there are two different groups of people: spenders and savers. You must learn to take the “middle ground” approach, which means you must not only use money wisely for intentional purchases but also keep a good chunk of it for yourself.

The first step to financial security and stability is to keep a portion of all that you earn. Before you pay for clothing, food, housing, and other goods, set aside 10% of your earnings and then invest your savings so that they can work for you.

No matter how little you earn, you should never save less than one-tenth of your income, and you shouldn’t let yourself buy anything from others until you’ve first set aside this portion for yourself.

A part of all you earn is yours to keep, and you must prioritize paying yourself before you pay anyone else.