Some books you read. But some books you enjoy. But some books just swallow you heart and soul - Joanne Harris
Ever since I start working, I found that I am weak in finance. I am lack of financial education. Financial education is not something that was taught in school. Thus, I decided to take an hour a day to read some of the most well written book that I have ever encountered. The first book that I am going to talk about entitled "The richest man in Babylon". The book itself was suggested by my boyfriend after he went to the Rich Dad Poor Dad free seminar.
The book had been written in 1926. More than 2 millions books was sold. The book explain the basics of money. It is a good book for graduate who will be leaping into the street. Since the book had been written for more than 90 years, the english they used is rather different compared to the modern english we used. It shall take some patience to read the whole book. It is definitely worth all your time and patience.
The summary of the book was printed on his first page.
LO, MONEY IS PLENTIFUL,
FOR THOSE WHO UNDERSTAND
THE SIMPLE RULES OF ITS ACQUISITION
- START THY PURSE TO FATTENING
- CONTROL THY EXPENDITURES
- MAKE THY GOLD MULTIPLY
- GUARD THY TREASURES FROM LOSS
- MAKE OF THY DWELLING A PROFITABLE INVESTMENT
- INSURE A FUTURE INCOME
- INCREASE THY ABILITY TO EARN
-THE RICHEST MAN IN BABYLON
The story is about Akrad who was the richest man in Babylon. The 7 points above is the 7 cures he had suggested towards lean purse. The first cure is start thy purse to fattening. Akrad suggested us to pay ourselves first before we spend. In order to that, we shall put away one tenth of our salary. Secondly, we shall control our expenses. We shall not spend more than nine-tenths of our earnings. Thirdly, we have to put each coin to labour so that it may produce its own kind. By doing so, a stream of wealth shall flow constantly into our purse. The forth cure is to guard your treasures from loss. Before we start investing of something, we shall have enough knowledge on the particular field. By consulting advice from wise man and reading, we shall able to protect ourselves from bad deals.
The fifth cure is to own your own home. By owning your own house, our cost of living will reduce. Yet, I am not sure this advice is applicable in our modern day now. The price of the house is so high and it was not something that a graduate can afford. In long term basic, buying your own house is beneficial as we do not have to pay the rental to a total stranger. We can decorate the house according to our own desire. We do not have to bump into tedious housemate. Owning your own house definitely bring many long term advantages.
The sixth cure that Akrad suggested is to provide in advance for your future needs. "Retirement plan" came over my mind while I was reading this chapter. However, Akrad's advice does not limit to retirement plan. He propose us to have a plan, not only beneficial for our second generation but also the generations after. The seventh cure he had suggested is to continue to learn. Akrad suggested us to cultivate our own powers, to study and become wiser, become more skilful and to act as to respect yourself. The thirst of knowledge shall be continue even though we had walked out of our university's gate.
All the suggestions are simple but powerful. Do pick this book up when you stop by a book store. There are many more hidden values you can learn through the book.
Knowledge without application is a book that is never read.
Regards,
ME :-)
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