The Richest Man in Babylon
This book helped me to think of money as a tool for strategy instead of a resource to spend.
High Level Takeaways
- The "7 Cures of a Lean Purse" ensure you always have money in your possession
- Every has an equal opportunity to master money.
- Wealth shouldn't be measure in the money you have but in the income you generate.
Who Should Read It?
If you want to read about money concepts in a story format (as opposed to self-help format) this book will be very enjoyable for you.
How the Book Changed Me
- I'm realizing that as a believe it's okay to seek out 'non-Christian' advice when it pertains to finances. To be honest there are things that are not taught or recognized in church that folks can benefit from - like this book.
- It's got me thinking about how giving financially can be a strategic thing and doesn't have to be burden
- I've got to figure out what my 10% savings will be for now that the emergency fund is fully funded. I'm not sure at the moment but defining it will help bring more meaning to my savings discipline.
My Notes
There are too many great quotes to just list within this post, so I'm trying something different.
I've decided to take only share a few of them and then provide my personal thoughts and takeaways, check it out.
Strategy: Indian giving
Before thou let any piece of gold leave thy pouch, be sure that thou hath a safe way to pull it back again.
This quote causes me to stop and really think. The author here is pretty much saying you should always keep your money right?
How can someone do this when the nature of spending is that you depart with your money?
If the ability to get money back that you already spent is possible, then it must require strategy.
As I ponder, I realize that tax refunds, interest, credit card rewards, investments and royalties are all potential ways for returning spent money back into thy pouch. Even though I'm not an expert in these means I know there are ways to safely do this. And I think the point of this quote is to always have a plan for your money to return back to you.
Identity: Free or slave?
The soul of a free man looks at life as a series of problems to be solved, and solves them. While the soul of a slave whines "what can I do whom am but a slave"
Understanding your identity can be a very powerful or limiting thing and I believe this quote shows this well.
In this single quote we see the reason why the free man is liberated and the reason why the slave is in bondage. It has nothing to do with possessions or status or race or age.
It's how they deal with problems.
The free man is liberated because he sees the problems of life as opportunities for solutions and finds a way to solved them. He doesn't complain, he acts.
On the contrary the slave is in bondage because when he sees problems he complains and see's himself as unable - and thus doesn't solve any problems.
I've been the slave in bondage, but thankfully I'm renewing my mindset. There are countless problems to be solved and I believe there are opportunities all around us. However, if we don't believe they exist, we won't realize, search or be on a path to discover them.
It really comes down to our personal perception of our identity.
Thinking: Love and Loyalty
That man who keepth in his purse both gold and silver that he need not spend is good to his family and loyal to his king.
The man who hath but a few coppers in his purse is indifferent to his family and indifferent to his king. But the man who hath not in his purse is unkind to his family and disloyal to his king, for his own heart is bitter.
Therefore, the man who wisheth to achieve must have coin that he may keep to jingle in his purse that he have in his heart love for his family and loyalty to his king.
Do your savings really show if you love your family and loyalty to your country?
Lets think about it. If one has money in their possession, that money represents opportunity to purchases goods and services or give to the needy and invest in businesses.
Also, having money saved means that one will always have a resource to address the needs and wants of their family without having to rely on another. This is very important to me as a Christian man who believes that providing for a family is the responsibility of the head of the household.
Well what about the king?
This represents the government, which by the way, is an entity that is established by God to look after the society it serves.
So, the savings that one has means they will have a resource to address the interests of their government, whether directly or indirectly so that their government doesn't have to rely on other entities.
In other words, a citizen who is financially responsible and thus has money in their possession provides their government with the opportunity of stimulating the economy without having to rely on other governments or countries.
Their government can create policies that incentivize financially responsible citizens to use their money in ways that will stimulate the economy and thus strengthen their nation and/or municipality.
The point
On the flip side if one does not have money saved it would mean that they, their family and potentially their government would have to look else where to satisfied their needs, wants and interest. This could be very problematic, causing the cycle of debt to be established and grow for families and governments.
This quote encourages me to be responsible and leverage what I've got. Doing so create opportunity for me to be a problem solver for me and my country.
Advice
Advice is one thing that is freely given away but watch that you take only what is worth having. He who takes advice about his savings from one who is inexperienced in such matters shall pay with his savings for proving the falsity of their opinions.
Knowing whether or not to take advice has got to be a skill. I think the word is discernment. If one can discern good vs bad advice, it could be very beneficial or detrimental.
Our money behaviors can likely be traced back to the instruction or advice from another, like a loved one or teacher. This is good but we must examine the source of our advice to ensure that the instruction we accept is worthy to follow.
To put it simply, when it comes to money be sure to seek out and keep honest, knowledgeable and experienced counsel. Doing so will provide you will protection and wisdom for your money.
Lending Money
The following isn't the full section I want to share but it has the main jist. In the book a short story is told about farm animals helping one another but one of them ends up being hurt from their generosity.
The story is used as a way to describe when to decide to lend money. Here is the concluding passage.
Gold you see, Rodon, is the merchandise of the lender of money. It is easy to lend. If it is lent unwisely, than it is difficult to get back. The wise lender wishes not the risk of the undertaking but the guarantee of safe repayment.
Tis well to continue to assist those that are in trouble
Tis well to help those upon whom fate has laid a heavy hand
Tis well to help those that are starting, that they may progress and become valuable citizens. But help must be given wisely, less like the farmer's ass in our desire to help, we but take upon ourselves the burden that belongs to another.
They way I interpret this advice is that we shouldn't neglect wisdom in our giving. We can and should be generous, but not to the point where we take on the responsibility or burden that belongs to another or hurting ourselves.
I find this advice to be good, but I wonder how this lines up with Christian giving according to the Bible.