This is the first time I’ve reviewed the audio version of a book. I have never listened to an audio book before but find it is a great way to take in information while doing tasks you wouldn’t otherwise be able to read at the same time. I listened to this one while I was driving to and from work. I was listening to this alongside reading Rich Dad Poor Dad and I feel that the combination of these two books have given me an invaluable insight into the world of finances, financial freedom and getting rich.
This book was written back in 1926, but it’s lessons in finance are still as relevant today as they ever have been. It is written in a series of short stories set in the ancient city of Babylon and it covers the simple concept of how to build wealth and how to keep it.
One of the short stories explains about a man who is very wealthy and rather than allow his son to inherit his wealth, he tests him by sending him out into the world to fend for himself with a bag of gold and a clay tablet. He advises his son if he can return with the gold that he gives to him in ten years time then he will inherit his great wealth. The five laws of gold which were inscribed on the clay tablet are as follows:
- Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
- Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
- Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
- 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.
- 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.
The lessons explained in these five laws are very simple and as relevant today in order to build wealth as they would have been many centuries ago in the kingdom of Babylon. It is what a lot of rich people today teach as the secret to making money and achieving financial freedom. I interpret them like this:
- Save a percentage of every thing you earn without exception. 10% minimum.
- Invest that money in something that will make more money. Then reinvest that money.
- Make sure you invest in something where you have received advice from an expert who is very experienced in that field of investing.
- If you don’t there is a good chance you will lose your money.
- Do not invest in Get Rich Quick schemes or other ways that offer unrealistic returns.
There are many other lessons such as this in the book and would advise anyone interested in improving their finances to read this book.
Favourite quotes from the book:
“Good luck can be enticed by accepting opportunity.”
“Men of action are favoured by the goddess of good luck.”
“Better a little caution than a great regret.”
“A part of all you earn is yours to keep.”
Overall: 92%