The Richest Man in Babylon is one of the most popular finance books on the planet. It is considered a classic that anybody should read, regardless of their profession. Although the concepts presented in the book are rather simple, there are 3 Money Lessons from The Richest Man in Babylon that we can all take home.

These lessons are fundamental. They might not make you a billionaire but, they do have the potential to improve your life.

Save Up

The first basic lesson from the book is focused around saving up. Anyone, regardless of how much or how little they earn, should save up at least 10% each month. The 10% figure is a base and a highly referenced one in the finance world. This should be easily doable by anybody.

Pay yourself first, is another popular concept laid down in this book. Many people don’t end up saving anything because they pay other people first. You can only ensure that you will save up money by putting aside 10% right after getting your paycheck.

However, 10% is not going to cut it if you want to accomplish something bigger. You should always strive to save up as much as possible, rather than spending more money on meaningless things. Everybody is performing useless spendings that could be cut off.

Cut Off Your Expenses

If you want to save up more than 10% a month, you should start cutting off certain expenses. We are all buying things that we don’t actually need. You can always live below your means, ensuring that you’ll have a better life in the future.

As fun as it might be to go on a shopping spree, something like that is unnecessary. Covering your basic living expenses is what you should focus on while cutting off all of the other shiny purchases.

If you can live with X amount of money today, then, you can do that regardless of your income. If your income increases, you would be able to save up everything else.

Invest More

If you save up a big portion of your money for a certain amount of time, you will at some point end up sitting on a pile of cash. This means that you can now start investing in things that will produce you more money.

Passive income is the goal of any entrepreneur, and it should be yours too. If you can achieve a constant flow of passive income then, it means that you will never have to work again. The more you save, the faster you will have enough money to invest, and the faster you will buy your freedom.

Conclusion

George Samuel Clason’s book is a classic finance one that any human being should read. The 3 Money Lessons from The Richest Man in Babylon, even if fundamental can surely have a tremendously positive effect over anyone’s life.