Tips from "The Richest Man in Babylon"

 This is going to be a book review of basically the big ideas that I got out of The Richest Man in Babylon. So the big ideas of this book are:

 Keep 10 percent

This book made it pretty clear that a large portion of the richest people in the world save their money. To get rich you need to save and invest at least 10 percent of your entire income.

Top earners and the wealthiest people in this world invest way more than 10 percent, but for the average person 10 percent is a great achievable goal.

Start this today as soon as possible to lock that habit down. And yes, saving is a habit. In fact just recently I've been putting 5 percent of my earnings into a savings account something that I recommend anyone to do.

Control Your Expenses

Honestly, this is something I need to work on. When you're trying to increase your wealth there are two things you can focus on

  

•            Increasing your income and       
•            Decreasing your expenses

A lot of self-help books tell people to focus on just increasing their income, but if you're living lavishly right now it might be easier just to cut your expenses in half, than it is to double your income.

For example, I spent probably a couple hundred extra dollars last month buying myself some new unnecessary stuffs, going out to eat more and actually I spent around $100 on Facebook ads, that didn't earn me any money back.

I finally sat back and thought how much is this ad spend generating it was an expense that wasn't increasing my output so I got rid of it.

But you should aim to do what I just did monthly. If you're not tracking your expenses and income, then you're not going to become rich.

I can guarantee you that you can't manage what isn't measured. So, start budgeting and tracking your money. It's just a tool and if you don't keep it sharp like a saw, it will take you more work to accomplish your financial goals.

Invest in Places you are Knowledgeable

Wisely, Bitcoin falls is this category. I really have no idea how Bitcoin works. Initially, I got very excited and invested in bitcoin, which was not a proper action as I didn't had any proper knowledge about it. I don't know where it will be in 10 years and most people investing in Bitcoin honestly don't know how it works either.

According to the advice in this book, most people should not invest in Bitcoin. You should invest in things that you are very knowledgeable about. 

For example, I know quite a bit about creating Blog posts, sales pages, Email Marketing, Affiliate Marketing and CPA marketing.

So, I'm gonna work on growing my net worth using those skills instead of betting it on Bitcoin, which is technically completely uncontrollable by me.

Put your money in places that you're knowledgeable about and in places that you can control. For example, I can control how well on my new course sells by how much content I create by how much I spent on advertising and how well the ads convert. All things that I can control

You'll notice that all successful investors do the same things. In fact, in most public stocks when you buy a share you're actually buying a part of company that you can make a decision

In some cases, if you own a certain percentage, you can actually be on a Board of Directors that makes big decisions. Controlling a part of the company and having influence on your actual investment.

Keep Learning and Always Keep Growing

This ties in with investing in what you are knowledgeable about. You can broaden your investing area simply by learning about more things.

For example, I could take a Bitcoin course and probably be in the top 10 percent of people who actually know how Bitcoin works. But I'd have to take the time and learn.

Maybe I need to work more on my blog posts. I'll test experiment, grow and learn how to make them better throughout time.

You guys can literally scroll through my site and look at the massive amount of experiments that I've tried.

I’m making a new course on self-development and various ways for passive income. I will show all the real techniques which I personally use and it can also be your right key to start. You don’t need anything to start, you can just start from anywhere.

Besides my course there are tons of other courses out there and will teach you things that put your years ahead of your peers.

In fact, one of my biggest investments in 2018 is going to be buying video courses because if an expert can put time to summarize everything they've learned into a single course I'm sure that I will get value from it.

It's one way to accomplish the advice of the richest man in Babylon Keep Learning

Guard your Money from Fatal Loss

This means Insurance, you buy Insurance for your car, you buy insurance for your home and you buy health insurance too.

Also, this goes for cash. Don't stuff it all underneath your bed. Imagine if your house caught fire and it all burned down that would be horrible and you'd lose everything.

  

Instead take it to a bank or invest it somewhere else. Also avoid gambling because most gambling places are actually rigged to lose and everyone has seen the recent Bitcoin hacks.

Take this into perspective, can you actually guard a Bitcoin. Are there places out there that insure your bitcoins?

Just something to think about.

Set up Passive Income

One day you might be physically or mentally ill enough to not be able to work. Avoid this by setting up systems to grow your net worth even when you aren't there.

The 4-hour workweek is a great book on this. I’m going write another blog on that book. I will also include tips for passive income.

Passive Income is something that I love teaching about and actually there was a month last year where I didn't do anything but read great books and I still earned few dollars.

Most people don’t know the differences between passive income and active income. In Passive Income, you keep on earning even if you don’t work i.e. you don’t work for money anymore, your money works for you.

While in active income, you will only earn if you work. Once you stop working, your money also stops coming. I will discuss these topics in details in my upcoming course.

Thanks for reading this.