The year is 1926. Henry Ford announces the 40-hour work week. The first SAT test is administered. And the notorious gangster, Al Capone, is terrorizing New York.
But the real news is this. The Richest Man in Babylon by George Clausen—perhaps the best financial book ever written–hits the shelves.
This quaint parable, filled with timeless wisdom, became a classic because it demystifies wealth building like nothing else I’ve read.
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, learn to spend less and pay yourself first. “For every 10 coins thou places in thy purse, take out for use but nine.”
This is the way that Wealth Builders live—a part of all they earn goes into their personal savings on a regular basis. In other words, they pay themselves first.
I’ve watched countless underearners transform small salaries into hefty bank balances by simply socking away small amounts into a savings account every month.
But now, unlike 95 years ago, you can do this automatically. Fill out a form and voila, the bank takes care of everything.
What do you do next? The rich man’s guidance is simple. Once you learn to live on less than you earn, next “seek advice from those who were competent through their own experiences to give it. And, lastly…make gold work for you.”
If you follow Clausen’s timeless wisdom faithfully—pay yourself first, learn from those with experience, and invest for long term gain–you’ll find yourself well on the way to wealth!
What gets in your way to creating wealth? Comment below and let me know