The Richest Man in Babylon: Key Takeaways

The book captures “The Seven Cures” and the “Five Laws of Gold”.

The First Cure: Start thy purse to fattening.

Start saving 10% of your income to start building up your wealth.

The Second Cure: Control thy expenditures.

Be vary of luxury expenditures, don’t get confused with them as necessities.

The Third Cure: Make thy gold multiply.

Invest wisely and compound the investment return from these savings.

The Fourth Cure: Guard thy treasures from loss.

Avoid taking risk of loss and investing in get-rich-quick schemes.

The Fifth Cure: Make of thy dwelling a profitable investment.

Buy instead of renting your principal residence, and use your residence to establish a business.

The Sixth Cure: Ensure a future income.

Plan for a pension or a future retirement income.

The Seventh Cure: Increase thy ability to earn.

Keep developing your own skills to increase your investing wisdom and also to increase your earnings power.

First, Second and Third Law of Gold are similar to First, Third and Fourth Cures mentioned above.

The Fourth Law of Gold: Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.

Invest in what you know about and understand.

The Fifth Law of Gold: Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.

Avoid get-rich-quick or aggressive wealth creation.