5 Most Powerful Lessons Learned From "The Richest Man In Babylon"

There are a few books that leave a long-lasting impression.

For me, it is this personal finance book by George S. Clason, told through parables set in ancient Babylon. George S. Clason teaches timeless principles on building and keeping wealth. He shares the importance of saving ten percent of your income first, living within your means, investing wisely, and avoiding debt.

Clason explains five laws of gold that should govern the way we view money:

Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.

Saving 10% of what you earn will grow until it can be used for a large investment.

Instead of putting money into debt or an investment right away, save the money away for a year and see your lean wallets grow into abundant wallets. This is the first step in building wealth from our sources of income.

Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.

We need to put in the work in order to reap the benefits of having money in our pockets. Money won't be given to us unless we work for it somehow. This can be an active or passive income but we need to do something that helps others to earn an income.

Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.

Investing will be the best option for growing our income.

We need to learn where we should be investing our money and how it works. There is a chance of losing all of our money if we invest foolishly.

Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.

Investing in investments that can offer a return will reap the benefits but some investments are not worth the time, effort, or money. Understanding where we are placing our money will make us wealthier.

Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.

Trust in where your money is going will make you wealthy.

We need to find trustworthy people who understand their craft and how they are turning their income into another source of income. Clason explains how a jewelry maker doesn't have any business speaking about mining when he does not work in that field. He won't understand it as well as a miner who can provide deeper knowledge on the matter.

Save ten percent of your earnings. Seek out knowledgeable and trustworthy investors who you can give your savings to earn more money. Don’t invest in things you don’t understand. These logical ideas, applied with understanding and trust, are key to growing wealth and living a life full of abundance.