Lessons from The Richest Man in Babylon Pt. 4

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May 18, 2018
Lessons from The Richest Man in Babylon Pt. 4

Image Copyright Ted Grussing Photography – Used with permission

Today we continue learning the laws of money from the parables of The Richest Man in Babylon.

In previous weeks we learned the first 3:

  • Pay yourself first, ahead of everything and anyone else.
  • Let your money grow through savings and investments.
  • Guard your money wisely: Steer clear of scams and guard your money from those not trained to invest properly.

Arkad’s fourth law is: Make of your dwelling an investment. It’s not hard to see that this law has to do with real estate. If you purchase a house and pay it off, then in your old age you will have a valuable asset and a place to live when you can no longer work and make payments.

This law of money has been brought back to the forefront of today’s world by the work of Dave Ramsey. Many people have completely paid off their homes by following his advice. While we do not always agree with his investment advice, we do believe his plan for getting out of debt is the best one out there!

The fifth law of money, according to Arkad, is to ensure a future income for yourself. This involves saving for retirement, of course! However, it also means creating a will to make sure everything is in order at the time of your death and securing insurance for care of you and your loved ones in your old age.

Insurance is rather complicated with the many variations and kinds of policies available. Some of them are exactly what Arkad warns against; with features which seem too good to be true. However, there are policies that are appropriate for certain people in certain situations. Make sure you educate yourself on what would be appropriate for you.

Two quick and easy tips

  1. Don’t buy insurance for a retirement purpose
  2. Young people strapped for cash rarely need whole life policies

If you are interested in George Clason’s book, you can purchase a paperback version on Amazon.

Have a wonderful weekend!

Source(s):

Clason, George S. 1874-1957. The Richest Man in Babylon: The Original Version