The Richest Man in Babylon – Six Laws of Wealth is a book that tells the story of 6 laws of wealth from the all-time classic bestseller with over 1,500,000 readers worldwide, The Richest Man in Babylon, written by George S. Clason. In this book, the secrets of creating wealth are revealed as well as how to maintain it. If money is something we want to have, this book is a book that we should read as well.
Money is a very important thing in our lives. Although some people may argue and say that money is not the most important thing, it cannot be denied that we need money to live and to buy happiness in the form of convenience for us in our lives. Today, we must accept that money can really buy us happiness. One reason is the desire to have a better quality of life, such as buying a big house, buying a car, buying necessities or various luxuries that meet our needs. As a result, many people in this era breathe in and out money. Whatever they do, they will look at money first. As for anyone who has a lot of money in their hands until they become a billionaire, they are almost the master of many people’s lives, with overwhelming power. At this point, we must accept the truth that even though money can’t buy everything, can’t it buy almost everything that people want?
“Even though we weren’t born with a silver spoon, we can still be rich.”
Wealth starts with having the right attitude. Many people often make excuses that the reason they are not rich today is because they were not born rich. Some who cannot make themselves rich choose to say that money is cursed. These words are just lies that they use to deceive themselves while they struggle to earn money every day. Because in reality, money is the energy that drives our daily activities and gives us the opportunity to find what we want.
“Getting rich doesn’t have to be dishonest. There are many ways to make a fortune through hard work and forward thinking.”
There was a man named Nasir who lived in ancient Babylon 7,000 years ago. He was the richest man in the city, so many people envied him and started accusing him of stealing from others. One day, while walking along the street, he suddenly stopped after hearing the shout of his old friend Ravi. Ravi, Nasir’s old friend, wanted to know something important. Ravi asked about the secret of Nasir’s wealth. With the answer he got, Ravi was very sure that the accusation that Nasir stole was definitely false because he knew that his friend was a very sincere person and there was no way that could be like that.
“The Law of Wealth”
The answer that Ravi got was that Nasir just followed the rules of wealth. When Ravi asked about those rules of wealth, Nasir was initially hesitant to reveal them to Ravi because these were rules of the rich who would hide the key to their fortune. But because he felt sorry for his best friend, Nasir agreed to reveal the 6 rules of wealth to Ravi. In this book, we will learn the rules of wealth together with Ravi. We will get the answer to how we can become wealthy? And how can we maintain that wealth?
“Rule #1 – I found my way to wealth when I realized that part of what I earned was what I kept.”
Nazir once resisted this first rule, claiming that everything he did was his own. But Arisaka, who gave Nazir the rule of wealth, smiled and warned Nazir that if he paid for the food, accommodation and services provided by others, what would he have left? So the first rule of wealth is to save at least (and not less than) 10% of your income for yourself. Choose not to spend money on clothes and save them because saving money is the beginning of wealth.
“Rule 2 – The sooner we plant the seeds, the sooner we feed and water the plants, the sooner our plants will grow.”
This is a clear comparison in terms of finance. The more we save and invest, the faster we will receive satisfaction under the result, which is wealth. When we follow the first rule correctly, we will have money from savings. Then comes the second rule, which is to invest all the savings in smart investments. When we invest money, this money tends to multiply more, which will be more than spending money on things we have always wanted when we have no money. But every investment has risks, so we must always be careful. Therefore, a good investor must understand how the business they are thinking of investing in works first. Study carefully before deciding to invest.
“Rule 3 – Pay off existing debts first. Don’t rush into new debts.”
The third law of wealth teaches us to avoid creating and having debt. Because the poor pay interest while the rich get interest. We will have the greatest freedom when we have true wealth. But putting yourself in debt is a way to enslave yourself. The important thing is that we cannot pay off our debt by creating new ones. So, we should plan our work and spend money each month seriously to pay off our debt by taking the time and sticking to that plan.
“Rule #4 – Don’t just buy into get-rich-quick schemes, invest in sustainable businesses that you understand.”
When you have money in hand without debt, the 4th rule of wealth is to invest in a sustainable business that must be a business that we understand the operation thoroughly. Nasir himself once lost a lot from investing in the gem business. But because he had no knowledge about gems, he was deceived. Arigaza taught Nasir that the business to invest in should be a stable business, making profits and paying dividends to investors regularly. If you are interested in any business that you do not understand, find someone who is interested. If you want to learn about gems, train yourself with a gemologist. If we have never had experience working with precious gems, we will never know what a real diamond looks like.
“Language and communication skills can help us build a common foundation with our future business partners.”
After that, Nasir followed Arisaka’s teaching. He entered the metal trading market, chose to work with people he knew and trusted, and invested in businesses that were proven to be really strong. By doing this, not only did he help himself in trading metals, but he also gained knowledge, skills, and experience from real metal experts. Having real knowledge about the business that he was doing made it impossible for anyone to cheat him in doing that business.
“Rule #5 – The beneficiary of our investments is always ourselves.”
Investing is a risky business with a high potential for rewards. Many people overlook the point that all our investments should benefit ourselves and enhance our growth. We don’t just invest money to make more money, we should invest to learn more and grow. This is the 5th Law of Wealth: Invest in yourself. Gain knowledge and skills to increase your earning power. Continue to educate yourself, gain new skills and experiences that will make you more valuable.
“Rule #6 – Protect our growing fortunes with diversification and insurance.”
The story about the fake gems was a real eye-opener for Nasir. He learned not to put all his money in one place or give it to one person. So he started diversifying his investments and buying reliable insurance policies to protect his growing wealth from disasters or theft. It also provided an income for his family in case the unforeseen event happened one day. This is the 6th rule of wealth. Protect our growing fortune through diversification and insurance.
If we can follow these 6 rules of wealth, it might be time to congratulate ourselves on our financial growth. Not only are we wealthy, we can also relax a little bit while still having money to spend. We might even be able to allow ourselves to have the luxuries we wanted in the beginning. Spending money is also important because money is what motivates us to do each and every day. So when we earn money, we must give what we deserve.
Conclusion
This story shows us that anyone can become rich. All we need to do is follow the rules that govern the accumulation of wealth step by step. To start, save at least 10% of our income for ourselves. We can save it under our mattress, but always keep 10% of our monthly income. Once we have saved enough money, start investing our money in sustainable and reputable businesses that pay dividends. Then try to pay off our debts. And do not believe in investing to get rich in a short period of time. Invest in yourself and protect your own fortune with diversification and insurance.
Learning to be rich is hard work. It never happens overnight. To embark on this exciting journey, we must be prepared to make mistakes and accept the consequences. Remember that the risks are high. Losing almost all of our assets does not mean that we have to stop trying. Many of us may view losing money as a bad thing and feel disappointed with ourselves. Remember that on the way to wealth, we should be prepared to fail and treat it as normal. Failure is not the end of all our efforts. It teaches us what works and what doesn’t. It is a good opportunity to learn and move on.
