Since December last year, I got hooked reading books on budgeting, saving and investing money and the richest man in Babylon is one book that truly peaked my interest for many reasons. One being, what can this man from Biblical times teach us about money that would still be of relevance today? I am glad to report that the book has all the nuggets that makes it one of the best financial books on the market. Sure it’s written in the language of old, I mean ‘thou shalt’ type of language but its easy enough to understand if you are paying attention.
The richest man in Babylon is a 91-page book but filled with so much wisdom that financial gurus have been drawing from the financial principles mentioned in this book. From start to finish I understood the concepts within this book and one that stood out to me and would love to share is, ‘sharing one-tenth of your income every single month‘. This book emphasises the importance of paying yourself first by keeping 1/10th of your income to yourself, using 7/10th for your living hood and 2/10th you invest and recent investment returns.
The entire book is filled with nuggets that had me reaching for my notebook write down all the tips that I picked up from this book and make sure I am putting them into practice in my everyday life and I am better for it. So, let me give you the highlights of the book without spoiling it for you.
The Richest Man in Babylon – why you should read it!
Regardless of your level of proficiency when it comes to managing money, the richest man in Babylon definitely has something to teach everyone. I particularly loved that whilst this book is set in the biblical times, I was able to get the gym behind each lesson in the book and it can be a measure of how you manage your finances from here onwards. The teachings in this book range from how to save a portion of your income and how much you should put aside. It touches on how much you should spend on your living expenses and something I did not quite expect was it touched on investing – not necessary the stock market but rather investing in business opportunities with low risk but higher returns (still has risk of some sort).
Reading through this book I realised how we can apply the financial principles outlined in this book in our everyday lives. I sat down looking through my personal finances and wondering, do I put aside 1/10th of my income? I am glad to report that I actually put aside more than that. I have reduced my living expenses, paid off debt and all that money goes towards my savings and investing into the stock market. What I also loved about this book is it gave some real life examples of how people in Babylon got rich, how they worked hard, saved some of their income and invested in ‘something they were well versed in or went to someone with great knowledge ‘financial advisors’ on the subject and sought advice from them‘.
Like I said, I truly wish everyone would read this book so I won’t spoil it for those interested but essentially, the principles covered in the richest man in Babylon (first published in 1926) are:
- Learn to save 1/10th of your income – people will always tell you there is no way I can save that match and for some that might be the case but for most, downsizing might not be the end of the world. You can get rid of some of your debt then get back on the ladder after clearing your debt and saving money.
- Make more money – even a book written as far back as 1926 still speaks on making more money via longer shifts or side hustle income.
- Control your expenditures – if you live in a house too big for your current income, it might be time to downsize or rent out the rooms to control your expenditures
- Investing – this could be the stock market, these days you can start investing with as little as £1 or you can invest in property if that is something financially viable with your current income/budget.
- Invest wisely – whilst its much more easier to invest now than ever before its still important to invest wisely, the stock market is a jungle but it doesn’t have to be, seek knowledge and familiarise yourself in things that you want to invest in don’t do it blindly.
- Don’t count of Lady Luck (aka lottery) – today’s lotto is 1 in a million chance of winning, instead of waiting for Lady Luck to change the current in my favour, I will work on increasing my wealth and reducing my expenditures.
- Take out insurance – there has never been a more apt time than now to ensure you and your loved ones are insured. So many things have happened in the last 12 months, people have learned there current savings just don’t cut it and need to save a little more in their Emergency Funds, need to be insured because without adequate protection, debt is near.
Whilst I have paraphrased the topics above, its essentially some of the elements the book covers and there is much more. Whilst I am not an expert in managing money, I have a pretty good handle on my personal finances, in my investment choices and in what I spend my money on with respect to living costs and the like. The richest man in Babylon may not be your kind of book unless you are interested in learning how to ‘fatten your wallet, control your expenditures, multiply your money, guard against losses and more.
I truly enjoyed reading this book and highly recommend it for everyone interested in getting a handle on there money. Don’t just leave it to your spouse just because they are good at it, learn as well and educate yourself on financial matters if not for anything but personal interest.
melissa major says
Sounds like an interesting book, with some helpful financial tips inside. I need to pick this up
Jenn @ EngineerMommy says
This sounds like an awesome book to me. Totally want to check it out!
swathiiyer says
Sounds like great book to read, yes getting some money is always important. I need it.
Jenjen Balatico says
This is pretty interesting read. Will search for this and try it myself
Jenny Kearney says
This sounds like an interesting book to read to learn more about managing your finances.
Paula Richie says
I have not read the book so I may be off the wall but the statement “sharing one-tenth of your income every single month” from a biblical perspective should be “paying one-tenth of your income to God (tithe)”.
Catalina says
Thanks for suggesting this book and reviewing it. It’s on my next reading list!
Heather Seeley says
I love reading books like this. Sounds like a really interesting look at finances.
MELANIE EDJOURIAN says
This sounds like an interesting and useful book. I look that they suggest paying yourself first, not all suggest the same. We downsized which made a big difference.
Anshika Juneja says
You have given a great review of this book. I’m definitely buying it.
Nikki Wayne says
I super love this book as well. I haven’t finished it yet so thanks for making a short summary here.
Catherine says
Yet another great review and suggestion to put on my list…sounds so interesting. Lots of key takeaways too!
Melissa M Sanchez says
Sounds like a really cool book with lots of good principles.
Bri says
Making note of this book! My husband would LOVE to read this!
A Nation of Moms says
I haven’t heard of this book. It sounds very interesting and it is nice to learn financial tips along the way.
Ivan Jose says
These money-saving things may be common knowledge but not a lot of people practice them, so it’s good to always emphasize them.
monicasimpson28 says
My husband has only read Dave Ramsey books. This sounds like one he would enjoy.
Lavende & Lemonade says
Giving percentage goals to live by is so helpful, thanks for making finance so simple.
Melissa Cushing says
Sounds like an interesting and educational read and I am all about saving and securing my finances. Will check this one out on my kindle.
melissa chapman says
Finance is one thing that is universal and this book seems like it shows you that. I would love to get a new twist on money and investing so I might find this book.
Amber Myers says
I need to read this. I always love to discover ways to be more careful with my money.
Lisa says
I am always looking for something good to read and I am going to add this to the list. I love when a book can help me reflect on areas of my life.
Yeah Lifestyle says
I’ve just added this book to my list as I want to learn more on how to manage my money and learn from others, thanks for a fabulous review of the book
Kira says
Wow what an incredible read this sounds . I will definitely add it to my reading list for the year
ThirtySomethingSuperMom.com says
I love learning about new books that I would enjoy reading. Now to just make some time to actually read them!
TheSuperMomLife says
This is one I’ll have to add to my list! It sounds like a book I would enjoy.
Ashlee Unscripted says
From your review, this book really seems to be one I would love to read. It’s the investing and how to split up the income that hooked me. I think that is so cool, that it advocates keeping a portion for your own desires, investing and also ensuring that your household is ok. Thanks for the review!
Rebecca Smith says
This sounds like a really interesting read and a book that I definitely need to pick up! Insurance is ever so important, I don’t understand why people don’t get it!
Rhian Westbury says
It’s amazing how a book published almost 20 years ago can still have so many relevant lessons in it, very interesting x
Samantha Donnelly says
This sounds like a great book to read, no matter what you financial circumstances are. I will definitely be adding it to my to read list
Sarah Bailey says
This sounds like an interesting book with a real lesson behind it. I like the idea of sharing your income in such a way.