In 1926, George Clausen, publisher of the first road atlas of the United States, wrote a slim volume of parables about Babylonia, once the wealthiest city in the world. The Richest Man in Babylon has become a modern classic that some people, including me, consider among the best finance books ever written.
When we first meet the richest man in Babylon, he is telling friends the secret to his fortune.
“I found the road to wealth,” he tells them, “when I decided that a part of all I earn is mine to keep.” The men look at him incredulously.
“Is that all?” one asks, insisting that of course everything he makes is his to keep.
The wealthy man just shakes his head. “You fool, you pay everyone but yourself,” he cries, pointing to the clothing sellers, sandal makers, and wine merchants. Instead, the rich man counsels them, pay yourself first. “For every 10 coins thou places in thy purse, take out for use but nine.”
This is the way of the wealth builders. They pay themselves first, knowing that a part of all they earn goes into their personal savings on a regular basis.
Are you living that way?