Perfect for: Financial Independence, Basic Money Management
Length: 144 pages
Depth: Quick and light
This book tells a story about the richest man in the ancient city of Babylon. The moral of the story is anyone can learn to be rich through being frugal and making smart investments.
All the Feels:
This book does not offer any groundbreaking secrets, however it still manages to deliver a timeless and powerful message. I think this book is better for someone who is newer to the world of personal finance, as it focuses on the most fundamental principles of good money management.
My Main Takeaway(s):
Avoid income creep and lifestyle inflation – when your income starts increasing, do not find new desires which to spend this income on (ex: fancy clothes, expensive cars, etc.). Stick to the essentials which bring you most happiness. Your essentials should be the same whether your bank account is $100 or $1M.
Don’t go for the sexy investments or chase big returns. Your investments should have some certainty of returns or collateral underlying them. Safe and stable returns will serve you better in the long-run. Similar to the classic tortoise and the hare story – “slow and steady wins the race”.
Saving money becomes fun when you gain momentum. When you start to see your bank account grow you will feel a sense of accomplishment and achievement. Suddenly making frugal decisions will become more of a game as opposed to a “lifestyle sacrifice”.
Increase your ability to earn by constantly improving yourself. Read books, attend classes and learn by doing. Every man, rich or poor, has 24 hours in a day. Make the most of your hours by consistently enhancing your knowledge and skills.