Richest Man in Babylon

I recently read “The Richest Man In Babylon” by George S. Clanson, which was originally published in 1926. This book contains a lot of interesting thoughts, and is a good read. The main point I got is that in order for money to constantly grow is to spend 7/10th of your income is for living expenses, 2/10 for paying out debts, and the remaining 1/10 is to be put aside to save, until you have enough to invest in something; and when investing for a profit, take advice from those who are experts in their field. With the profits be careful, and re-invest in order for the money to keep growing. Do not spend pointlessly what can be maintained for a rich financial turnover.

IMHO this is a good strategy to live by. I doubt anybody is so poor they can not save 3/10 of their income. You can always spare drinking a beer, or stay home on a weekday night. I do not eat out (unless I’m on a mystery shopping assignment – I’ll talk about it later) or spoil myself with candies every day.

“A penny saved is a penny earned.”