"Unlocking Wealth: Key Takeaways from 'The Richest Man in Babylon'"

basics

 1.Pay 1/10 of e basic verything you earned, and live with the rest of the part of your earn money.

2.take advice only from those who are experienced in that matter,take advantage of the compounding of return. 

3.there are 2 Ways desire to accumulate wealth -

Time:

Time is money, taking a good decision on Good time will be beneficial for you.all people got enough time but they don't put it on constructive or useful stuffs.they only use it on that type of activities which are only passes the time.only a few bunches of people put their time on good stuff,they use it to educate themselves and which topic?the topic which is usable in real life,in finance.

Study:

 There are 2 kinds of learning that are useful to general wealth.

1.Learning about a specific subject 

2.Find out what is not commonly known about any topic.

Several basic principles which apply to the aqua- situation of wealth.

- dont spend all of your money

- A lot of Money passes through our hand over the year ,We just need to keep a small portion of it.

- all we have to do is remove 10- 20% of your budget and save it.when a person does that he will adjust his lifestyle according to the rest money.what will happen is - day by day the saving money will grow.

7 secrets to filling your bag

1.save at least 10%of your income,you'll see your purse is gonna be fatted.

2.control expenditure 

Know your needs and wants,spend on needs not on wants.

3.make money work for you,only saving is not enough if you want to become rich.multiply your gold,invest your gold on loans, opportunities and gold multiply.

4.guard treasures from loss

Protect your gold from any loss,ask the wise people about what they know and also from them who are experienced in those fields.

5.make of the dwelling a profitable investment 

Make your property a rental investment 

Buy your own Home 

6.insure a future income 

For your old age & your family,buy land , properties 

Provide in advance for your own and family.

7.increase the ability of earning 

Increase the ability to learn 

Increase your ability to acquire good and valuable knowledge,the more knowledge you have the more money you earn.seek to learn more and become wiser.

How to attract good luck?

good luck comes to those who don't procrastinate & accept opportunities.hesitate, procrastinate &fail to take opportunity don't. attract good luck.

To attract good luck A person should take advantage of every opportunity it is better than those who sit back & wait for everything to be presented on a plate.good opportunity seen with our mind not with our eyes.life gives us life time opportunity,we need to just find it and work upon it.there is no body who has become rich by gambling.

If you are good at earning but not in how to protect them then it will become a trouble for you cause responsibility comes after that.you should be having knowledge about how to keep it up to you.if you have assets then make sure all that available on your name legal papers and proof. 

Next is security 

Security is something that must be planned in advance to fit the needs of the situation.you could take health,life,property insurance.there is no body who becomes rich by won a game.but,ya! if they know how to protect it,where to spend it,how to make money from them and have good financial knowledge then there is it.

wealth is like a tree,seeds are your savings & your returns are the fruits.

The clay table from Babylon 

• you can never be rich if you spend everything.

• take advice from experienced and experts.

• don't cut the tree

• reach the point where 

spending doesn't make difference.

    

"Why They Didn’t Teach Me This in School: Important Lessons and Summary"

                    

Life lessons

1.Marrying the financial right person

choose a life partner who respects you understands you,has good financial knowledge and understands your financial situation.cause after your parents he/she would be a part of your life forever, effect your financial as well as personal life.so,it's important to having a good life partner.

Know his/her 

•Earning

•Loan

•Money management 

•Property 

•Spending habits 

•Dependent or independent

if you could, then discuss your money philosophy with each other,plan how many children you were gonna make,cause it will. also affects your financial situation.if you have a bunch of children but you couldn't feed them then, it will become a problem.

and here we are not considering other expenses like education,health, groceries, any service.if we add those then just think how it will be.

2.stay married and live below your means

if your partner financial philosophy is good then make sure that you don't go for divorce in small cases,try to understand the situation, things like divorce made a huge loss of money,also it will affect you emotionally and mentally.always wouldn't do any expenses on unnecessary things.most people take a debt for their wedding,which is a biggest mistake in their life, don't go for only show off.if you have that much capabilities then it's ok otherwise wedding with a debt,that doesn't make any sense.you should always discuss with your partner before having a financial decision.even, the author says that he financially retired early only because of his married life. 

3.your friend circle and your 1st job 

having good friends is beneficial for you.try to make new friends. if you are in college or in an institute now,Then it's a good opportunity for you, now this is the time where you can make good friends.have a good relationship with them.cause in near future might be they will be at some good position. may be a few of them are in insurance sales man,CA,real estate investors, finance consultant, financial experts.so, that would be an advantage for you.which don't mean that having friendship only for your advantage but sometime also help them , support them,help them emotionally and financially cause friendship is a great relationship more than anything else.once there could be a time in life all forget you but a true friend doesn't care what the world is going up to.

4.Spend just 1 hour each week learning about personal finance 

ten hours of gyming on 1 day couldn't affect your body but one hour on every day could affect it. we need to work every day to gain our financial knowledge. 

four advice to learn personal finance :

• through internet 
• library
•  seminar & work shop of your collage and companies 
• find a mentor

5.get rich slowly and take care of your stuff

• no anybody becomes a millionaire overnight.it takes time.you should be having consistency, dedication and patience.

knowing everyday some Stuff regarding finance would make you a good financial learner, increase your disciplinary. Also it helps you to become rich mentally & financially.

Here taking care of your stuff means maintenance of your whole thing,if you have an apartment,car,bike whatever then maintain it.cleaning your clothes, furniture,have any electronic machine like tv ,fridge, laptop then rechecking them time by time.it would reduce your huge expenses.

6.set your goals 

if you don't make goals & you don't track them,then it's difficult to achieve anything.A man without a goal might seem aimless or lost, as he lacks a clear direction or purpose. Without goals, it's challenging to find motivation.so, choosing a goal is important.there are two types -

Short term -  

• Goal that take less than 1 year
• It should be like , I'll increase my income by 15-20% in less then 1 year.
• Saving 30% of my income &put it in to my saving account.

Long term -

• Goal that take more than 1 year 
• e.g I'll buy a car before i turn 30 with my own money,finish all of my loan before turn 30.

Next is net worth

Why are we learning it ?

The majority of people would have heard about that stuff like he/she has X millions of net worth ,the net worth of the company is that much.but nobody knows what it really is.actully these are nothing but a financial statement who tells us how wealthy it is.

The simple formula is -  

Asset - liabilities = net worth 

List Assets:

Cash and Cash Equivalents: $10,000

Investments: $50,000

Real Estat: $300,000

Personal Property :$20,000

Other Asset: $15,000

Total Assets = $395,000

List Liabilities:

Mortgage: $200,000

Car Loan: $15,000

Credit Card Debt: $5,000

Student Loans: $10,000

Total Liabilities = $230,000

Calculate Net Worth = $395,000 - $230,000 = $165,000

Budgeting & saving lessons 

1.develop a written budget & evaluate it every month.

  you need to know how much money you spend on and on which stuff.if you don't know how to manage money then how you could think that you're gonna be rich.earn money is not important but important is how you can keep it up to you,how you spend this .so you need to do that.

E.g monthly budget 

Monthly Budget Report for August 2024

Income:

Salary: $5,000

Freelance Work: $800

Total Income: $5,800

Expenses:

Fixed Expenses:

Rent/Mortgage: $1,500,

Utilities: $300

Health Insurance: $250

Car Insurance: $150

Loan Repayment: $400

Total Fixed Expenses: $2,600

Variable Expenses:

Groceries: $600

Dining out:$250

Transportation: $200

Entertainment: $150

Clothing: $100

Miscellaneous: $150

Total Variable Expenses: $1,550Total

 Expenses: $4,150Savings and

 Investments:

Emergency Fund: $500

Retirement Savings: $400

Investments: $700

Total Savings and Investments: $1,600

Summary:

Total Income: $5,800

Total Expenses: $4,150

Total Savings and Investments: $1,600

Remaining Balance: $1,050

2.save / invest 50% of every salary increased

mostly when our salary is increased our expenses automatically increase,we spend more then what we thought and also on unnecessary things.so we would have to keep in mind that forget about how much our salary is increased just to have to do that is invest it on assets. you can invest it in stocks, mutual funds and also if you could then save it on any saving account which give you some % yearly.

3.Save 90% of every bonus or non -planned income 

if you get any bonus,gifts, rewards, any non -planned resources of money like winning by any game.wining lottery then Don't spend this on for short term desire,save 90% of it & utilise it to get a new income source.

4.always have an emergency fund

you should always have an emergency fund.because nobody knows what will come to our life,what type of problem we could have to face. it might be regarding jobs,health or any emergency.so that's why we need it.and it's one of an important point to discuss because at that emergency time if you If you are not prepared for the situation then you will lose everything.

5.Offers and discounts 

shop around discount on products and services,use coupons if you have.

 Spending lessons 

1.don't go for  show off

If one of your neighbours bought a bmw .it doesn't mean that you'll win if you buy a better car then them,Even if it is with a loan?

don't copy any other lifestyle.forget the comparison,no anyone could satisfy by doing it

2.buy last year model of things which you really want to buy

High ticket items like 

• Car
• Tv
• Electronic 
• Other app

These types of companies even if they would create a new product then there is nothing any major changes then the previous one model.so,even if you go for the one year previous model,then it's fine and also you got that by a less price cause the company decreases their price for inventory of the new product.

3.spend now to save later

it doesn't mean that you would spend on anything,it means spend this on those things which will give your return in the near future.actully it tells about investing in assets.

Debt & credit card lessons 

1.debt is bad

always remember debt is bad,and those who said it is good they just want to live their life in a profitable way they don't care if you are gonna financially destroy or not.don't buy things which you can't afford,many people buy things just to show off and also with the loan amount which is the biggest wrong decision in their life.

2.credit card

say no to credit card,and if it is important for you then you should have only one but pay the balance on time, don't pay the minimum.it change your buying habit.always maintain a good credit carding.as a result if you need any loan in the future you could get it easily.loan always depend upon your credit score ,so make sure you maintain it properly.

Investing lessons 

1.manage your own money 

educate yourself and manage your money,here the author suggests don't take advice from financial advisors.as a beginner it would be possible that they cheat you.

2.buy 3-4 stocks,index, mutual fund
Start investing 

Diversifying a portfolio with multiple stocks reduces risk and volatility, provides exposure to various sectors, and enhances the potential for more stable and improved returns. 

Stock market:

• Higher return 
• Higher risk

Mutual fund:

• stable return

Index fund:  

• Portfolio is predictable 
• Risk is very low 

3.Don't invest with family and friends 

don't put financial relationships in between family relationships and friends.it would destroy your everything.help them financially, give money to them as a gift don't live in the hope that even they would have to pay it to you.puting money related issues in relationships could destroy your healthy relationships.

Housing lesson

1.rent it, don't buy until you are settled 

if you are at a young age(growing phase , unmarried, recently in job )then you shouldn't have to go for that.after your wedding or if you settled well, then you could be concerned about that.cause if you buy it, then you not only pay for this,but also you pay for decor expense,agent commission, property tax and maintenance charge. it will break you financially at that age .

2.before buying a house 

check the location and price ,also check the locality,crime rate,local living traffic, education.

3.distances

Check what is the distance of your house from your work place, restaurant, shopping mall.Is your chosen house located in a friendly area for educational purposes? Are schools, colleges, and institutions nearby, and if so, what is the quality of education there? This could be valuable for your children in the future.

5.value of your house 

Compare the current price with the resale value,try to having good negotiation 

Insurance lesson 

1.term life insurance 

term life insurance works best for young adults ,but take these types of insurance which are renewable and non - cancelable.it will give financial stability to your family after you die.

2.Deductible insurance 

always choose high deductible insurance for home and automobile stuff.but use it only on big problems.

[A deductible in insurance is the amount of money you pay out-of-pocket before your insurance coverage kicks in. It helps manage risk and reduce the number of small claims.

Example:Let's say you have a car insurance policy with a $500 deductible. If you get into an accident and the repair costs $2,000, you'll pay the first $500, and your insurance will cover the remaining $1,500.

This system helps lower insurance premiums because you share some of the financial risk with the insurer.]

    

Quick tips

1.take the house down payment instead of   spending too much on the wedding.

2.learn how to fix things by yourself.

3.read every line of every contract you sign.

4.read book

5.use cash as often as possible 

6.approach your job by following 3P that is 

(Passion, politeness & persistence)

"Rich Dad Poor Dad Summary: Key Takeaways and Lessons from Robert Kiyosaki"

rich dad and poor dad is written by Robert T.kiyosaki.where he discusses about what he learnt from his two fathers . first one is his biological father and another is his friends father, whom he consider his rich dad.he describe how his both fathers mentality is different. their principal,rules and thinkingness about money describe that how a poor person and a rich person would think.

Difference between rich and poor

• poor people believe in traditional working principle - like working hard ,save money, don't buy things you cannot afford,have a good job with good company while in the other hand rich people believe that if you have financial knowledge no anyone gonna break you to become rich.

•poor people think that if we have it in our luck then it comes to us while the rich think that we could change our luck,all we need to do is not procrastinate and try to catch all the opportunities we get.

                                       

•poor think that only education is a passport of success,if you have a degree then you would have everything ,but rich focus on balance sheet.they spend their time in educating themselves regarding investment, accounting,creative ideas and problem solving solutions.

•The poor think that" the love of money is the root of all evil" while the rich are different" the lack of money is the root of all evil".

1.rich dad, poor dad

rich dad hates the rat race He went to get out of that. he always says that you work hard to put money in your pocket not for others cause business runs by other people who don't have as much knowledge as yours.

our school and colleges don't teach financial knowledge they only focus on scholastic and professional skill. that's why the poor get poorer and the rich get richer.

2.rich don't work for money

The poor and middle class work for money and fear . while only rich people grab opportunity.acctully,they are financially free so they have a clarity to clarify.they always focus on wealth building which can create money for them.(wealth building= asset building).

when you build an asset money work for you ,the cash flow is generate.whether you work or not it pays you..

3.why teach financial literacy 

Financial literacy is the ability to understand and effectively manage personal finance. This includes knowledge about budgeting, saving, investing, managing debt, and understanding financial Statements.

Poor remains poor because they do the opposite ,pile of liabilities and have zero assets.balnce sheet & income statement become unbalance.

[Don't be wise with your money rather than smart with your money.]

4.mind your own Business 

the rich people focus on their assets while others focus on their income.

individuals need to mind their own business,find out what it takes to become your own business.

Asset building -

- stocks 

- bond

- income generating real-estate 

- IOUs

- royalties from intellectual property 

- buisness 

5.history of taxes and power of corporation 

The biggest secret of the rich is the corporation, they know how to use it ,also you need to use the power of the corporation for your asset protection.

Advantages of corporation

- earn money 

-spend money 

-pay tax on the rest of money 

•actually, after earning the rich people use depreciation and claim expenses as a result it reduces their tax. you should become a part of a corporation as shareholders.

Disadvantages of individuals

- earn money

- pay taxes

- left with no money 

•individuals work from Jan- dec & pay tax to govt but the rich are hardly taxed.

we all have tremendous potential,one thing which holds us back is self doubt so you need to change your mindset.

6.rich invent money 

bold and adventurous people go ahead in the real world not necessarily educated people only become successful. 

poor people never get financially ahead they fail in grasping opportunities,some are waiting for opportunities and some are blaming others for their situation.

We should know that money has to be created,life gives us lifetime opportunities.

By using knowledge of intelligent people we can increase our own knowledge 

Always remember -

"GREAT OPPORTUNITIES ARE NOT SEEN WITH YOUR EYES. THEY ARE SEEN WITH YOUR MIND"

7. work to learn, don't work for money

some people are the powerhouse of knowledge but fail miserably.they think that, yes now I have a degree my education is complete .if I settle in to a job then my life will be settled.this type of mentality keeps you poor in every way.every day try to learn new things which would keeps your mind active in both financial as well as personal way.

people should learn other skills also,it'll help for financial freedom.

Skills to get success -

- management of cash flow 

- management of system 

- mangement of people

- marketing skill

- communication skill

8.overcoming obstacles

 Most people can't make assets due to these reasons-

> fear

> cynicism

> Laziness

> Bad habits

> Arrogance 

look fear is normal The important thing is how you can handle it.thats why you should be mentally strong.

don't be afraid to take risks and be a failure there is no anybody who will achieve success without fail.

9.getting started

Tips to create and build personal wealth 

- find a reason of your goal 

- empowering you mind

- spend time with people who enjoy 

   Talking about money 

- learn new skills 

- sometimes others help you to get that power.

10.still want more 

- stop doing what you are doing if it doesn't work try to find new ways of doing it.taking courses,keep learning, attending seminar could be useful for you.

- follow a mentor who has already done what you want to do.

- always curious about new ideas.