Learn the way of measuring wealth according to the "Richest Man in Babylon" book.

Hi friends,

I had read the Book, “The Richest Man In Babylon” where I found out how they measured wealth. It is very different compared to the way I learned from Rich Dad Poor Dad book.

How to measure wealth-

“I tell you, my students, a man’s wealth is not in the coins he carries in his purse; it is the income he buildeth, the golden stream that continually floweth into his purse and keepeth it always bulging. That is what every man desireth. That is what thou, each one of thee desireth; an income that continueth to come whether thou work or travel.

"Great income I have acquired. So great that I am called a very rich man. My loans to Aggar were my first training in profitable investment. Gaining wisdom from this experience, I extended my loans and investments as my capital increased. From a few sources at first, from many sources later, flowed into my purse a golden stream of wealth available for such wise uses as I should decide.

"Behold, from my humble earnings I had begotten a hoard of golden slaves, each laboring and earning more gold. As they labored for me, so their children also labored and their children's children until great was the income from their combined efforts. 

"Gold increaseth rapidly when making reasonable earnings as thou wilt see from the following: A farmer, when his first son was born, took ten pieces of silver to a money lender and asked him to keep it on rental for his son until he became twenty years of age. This the money lender did, and agreed the rental should be one-fourth of its value each four years. The farmer asked, because this sum he had set aside as belonging to his son, that the rental be added to the principal.

"When the boy had reached the age of twenty years, the farmer again went to the money lender to inquire about the silver. The money lender explained that because this sum had been increased by compound interest, the original ten pieces of silver had now grown to thirty and one-half pieces.”

"The farmer was well pleased and because the son did not need the coins, he left them with the money lender. When the son became fifty years of age, the father meantime having passed to the other world, the money lender paid the son in settlement one hundred and sixty-seven pieces of silver.

"Thus in fifty years had the investment multiplied itself at rental almost seventeen times.

"This, then, is the third cure for a lean purse: to put coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse.”

Bonus:

My takeaways:

Here From the first paragraph, it is seen that " A man's wealth is not in the coins he carries in his purse; it is the income that he buildeth' the golden stream that continually floweth into his purse and keepeth it always bulging."

This very line states that if I have money flowing into my purse then I have wealth. It doesnot have to be like I need to have a land or something that costs a lot of money, which I can call my wealth. Because on that same paragraph it states that "That is what thou, each one of thee desireth; an income that continueth to come whether thou work or travel."

This line means if I if I have money coming into my purse without me needing to work or I can travel freely; that money is my wealth as the money is multiplying.

The example also highlights what I have said afore. From the third paragraph we find that, "When the boy had reached the age of twenty years, the farmer again went to the money lender to inquire about the silver. The money lender explained that because this sum had been increased by compound interest, the original ten pieces of silver had now grown to thirty and one-half pieces.

Following that Paragraph, "The farmer was well pleased and because the son did not need the coins, he left them with the money lender. When the son became fifty years of age, the father meantime having passed to the other world, the money lender paid the son in settlement one hundred and sixty-seven pieces of silver.

Here when the farmer approached the money lender the first time, came to know that his money had grown to thirty and one-half pieces from ten pieces. He just kept this money to the money lender and his money just increased without him needing to anything but let time pass. The same thing can be seen on the following paragraph. Here, when the boy turned fifty years of age he received a settlement of one hundred and sixty-seven pieces of silver form thirty and one-half pieces. Throughout the whole time the farmer and the boy didnot need to do anything. They just lived and their money increased without them needing to work. As time was passing by, their money was increasing. Here the money which was coming to their purse(one hundred and sixty-seven pieces of silver) was their wealth. It didn't matter whether they worked or not their money was coming to their purse. This was their wealth.

And how you can multiply your money is by investing and learning how to make your money work. One of the ways how money can work for you is by following the first paragraph, "A farmer, when his first son was born, took ten pieces of silver to a money lender and asked him to keep it on rental for his son until he became twenty years of age. This the money lender did, and agreed the rental should be onw-fourth of its value each four years. The farmer asked, because this sum he had set aside belonging to his son, that the rental be added to the principal.

And the rest as you know, when the boy became twenty years of age the coins turned to thirty and one-half pieces. Later after thirty years the money lender paid the boy one hundred and sixty-seven pieces of silver in settlement. "Thus in fifty years the investment multiplied itself at rental almost seventeen times. This is one of the ways how you can make money work for you, without your need to work to increase it.

How you can put it into practice:

1. Set aside some money.

2. Then learn how to make money work for you.

After the learning is over start to do the things that you have learnt.

And before you spend your money, read this page and it will help you to stay safe from the mistakes that you would make by not reading it. This page I personally believe has some lessons that will help you. The Newsletter’s name is “The Five laws of Gold.” Just give it a read.

The Five Laws of Gold according to the Richest man in Babylon-

If you want to know how to measure wealth according to Rich Dad Poor Dad book as mentioned earlier then click the link below to check that out.

More things that you can check:

Why a house was considered a “Profitable Investment.

Why a house is a liability-