Book Report Memorandum 4
Book Report Memorandum
The book report is about a book named _The Richest Man In Babylon. The Richest Man In Babylon,_ written by George Samuel Clason, is a book about management of personal finance through a collection of parables set in ancient Babylon. The stories are laid out like Aesop's fables: each story has a concrete point or two that becomes apparent from reading and digesting the message. These points are basic tenets of how to get ahead financially in any time, not just in Babylonian times or in the 1920s.
In Babylon there is a man who is wealthier than all and there is another poor man deeply interested in how he has achieved such status so he begins to make daily visits to his house on the hill, bringing others along, to learn the lessons that created such wealth. The wealthy man is open to share his keys to success and the others intently listens as he tells stories and experiences in his life that get across the most fundamental techniques of personal money management, savings and investment.
What the wealthy man shares to the public is collected in different stories. The most popular stories are _Seven Cures for a Lean Purse_ and _The Five Laws of God_. These two stories provide practical points for managing personal finance by seven methods and five laws.
The lessons which the poor man had learned and applied to his life were remarkable, and this slave had managed to turn his life around by applying the principles and lessons he had learned. He had documented everything he had learned and his progress on clay tablets, which were later found in the 1930's by archaeologists and professors at a university. These professors had then learned of these principles and applied them to their own lives, to also become wealthy and financially abundant.
Feature of the book
This book touches on the fundamentals of personal finance and reminds us of the simplicity and discipline that have proven successful for thousands of years. Clason takes a creative, yet simple story-telling approach to teach the reader the basics and the foundation of how to conservatively build wealth over time and become financially successful.
In comparison with similar books
In fact, many popular finance books such as _The Wealthy Barber_ or _The Automatic Millionaire_ are based on principles from this famous book. In fact, in the _Millionaire Mind Intensive_ they talk about allocating your money in a similar way that George Clason mentions here. Either way, it's good to hear these methods again and again to remind ourselves of these age-old principles. We may know something intellectually, but practicing it is a whole different story.
Impressive methods of wealth management
What impresses me the most is the story of _Seven Cures for a Lean Purse._ The tale _Seven Cures for a Lean Purse_ relates a story about Arkad, the titular richest man in Babylon. He is requested by the king to teach a class to anyone who wishes to attend on the methods he used to build his wealth. He divides this class across seven days, with each day focusing on a particular method for saving money.
Here are the seven methods in the tale: 1. Start thy purse to fattening; 2. Control thy expenditure; 3. Make thy gold multiply; 4. Guard thy treasures from loss; 5. Make of thy dwelling a profitable investment; 6. Insure a future income; 7. Increase thy ability to earn
Below are the methods that impressed me a lot
Start thy purse to fattening----Pay Ourselves First
The book recommends that we pay ourselves 10% of all that we earn. We cannot accumulate wealth if we do not save what we earned. We can do that by paying ourselves first and foremost before we spend any of the money we have earned. It is the same as the U.S. government. It takes taxes on our wages before we can get to it. The U.S. government (IRS) knows this law well.
Guard they treasures from loss----Insurance...
Please join StudyMode to read the full document