Updated 27 days ago on . Most recent reply
Saturdays Beyond Real Estate
Just finished reading the book: The Richest Man in Babylon. I highly recommend it.
SPOILER ALERT‼️‼️
Here is my interpretation of the greatest lessons from the richest man from the richest city in anchient times. The key fundamental lessons are still the backbone of personal finance today:
Lesson 1: Pay yourself first
A key component: weather you make $100k or $1M the simple math should be the same. The below order is critical!
1st: Pay yourself 10% of your entire earnings
2nd: 20% of your income goes to your debts owed
3rd: the remaining 70% is what your budget is to live off of
Lesson 2: Investing Wisely Grows Wealth
The 10% you pay yourself first is the seed to your weath that should grow and create more offspring to serve your wealth empire. A critial part of this is investing smart within something you know and understand and with professionals within this field.
If you want to invest in a real estate development, don’t give your money to the mailman who “has a great deal”. Invest it with a developer who has a track record of success.
Lesson 3: Budgeting - Necessary vs Desired
Budgeting the 70%. Find what things are necessary that fit into this 70% not the other way around. Don’t confuse necessary expenses with desires.
Have you read this book? Any other key takeaways and lessons learned?