Personal Finance Lessons From The Richest Man In Babylon
Personal finance lessons are all around us in our everyday lives. Every day we handle money without thinking about the consequences of making poor decisions.
However, we may not grasp our own financial mistakes. We can learn better financial habits from
The Richest Man in Babylon
by George S. Clason, an all-time favorite.
This book can help anyone avoid financial blunders, create wealth and build a financially secure future. I recommend this easy-to-absorb book to my business students and my children.
“Pay yourself first” may have been coined by Clason. It means you should put away 10% of every paycheck into savings.
1. Pay Yourself First By Saving 10% of Your Annual Earnings
To set aside money for saving and investing, you may need to cut some costs. To control your expenses, assess your budget for your basic living needs.
Spend Within Your Means
Saving and investing your money as early as possible enables you to benefit from compound interest through the years.
3. Make Your Investments Work For You Long Term To Accumulate Wealth
Investments are often fraught with dangers, especially for beginners. Not every investment bears fruit.
4. Pitfalls of Investment Is Overconfidence
Buying your own home versus renting is a widespread debate. Clason via Arkad advocates in favor of owning your home.
5. Owning Your Primary Home Is A Good Investment
Saving for retirement is investing with deferred tax benefits. The earlier you save, the more you will benefit from compound growth.
6. Retirement Savings And Insurance
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