8 realistic ways to make money online in 2021

The Richest Man in Babylon inspires the readers who seek to live their rich life with contentment and at equilibrium. It is one classic piece for self-help and wealth creation.

This book provides a piece of advice to overcome the financial crisis of the present and future. The primary lesson comes from Arkad, the claimed richest man of Babylon. It is a parable in which a young man asks for the advice of the rich. This man teaches him the rules to create wealth from very scratch.

The book is not just a story but can be related to many life events. Meanwhile, the young boy gets rich after making mistakes and following the advice of the rich. The writer has displayed various important lessons which make it worth read, which are:

Save and Invest Rule

One piece of advice given to the young boy was to save at least 10% of his income. This advice is based on the ‘pay yourself first’ principle. Moreover, his advice remains constant for the ones under debt, that is, to set aside at least one-tenth of the amount. If you wish to save your future, you must start setting aside a certain portion of your earnings.

Make your gold multiply

Another important rule is to use money to make more money. This is one golden principle for the creation of wealth explained in several masterpieces such as Rich Dad Poor Dad. He beautifully relates this to the example of a soldier. He imagines every dollar as a soldier. Every mission demands a soldier to capture another soldier and hence the counting goes on.

The majority of the people are spending their earnings on rotten commodities like cars, clothes, etc., which have zero net worth. You are making other people rich.

While smarter people are spending that money in another business to generate more money. This is the ultimate phenomenon to become rich and create wealth. It is worth spending on. However, the author explicitly stressed the type of business for investing money in. It must be subject to the personal interest and understanding of the investor. Rather to any random reason.

Multiply your gold

Take advice from skilled people in that Field

You need not to a doctor for seeking advice to invest in a shoe factory. The right choice of place matters the most. The very same advice was given to the young boy by Arkad. Only take advice from the people who are already there in that field.

The book illustrates this example with the story of the character investing with a foreign jewel trader. He was scammed and left with fake jewels. He also tried to invest in the shield industry, of which he knew nothing about. What happened next? He lost all his savings.

It is surprising how frequently people get caught in the fake bits of advice of the people. However, they are attracted more to the stories of successful men.

Achieve consistent cash flow

Do not get attracted to the lottery and prizes. It is not a constant way of earning money. It will give you a lump sum of money one time only. Rather, focus on a consistent earning system.

It’s not how much you have; it’s how much you keep and how much you keep making in the future.

Invest in your ability

One good source of investment is to invest in your ability. In simpler words, invest to boost your knowledge, skills, and interest. Seek knowledge, as it is one huge investment.

After gaining knowledge of that particular field, like a business, invest the rest money to set it up. It is that easy and accommodating. Moreover, your money does not get wasted. Instead, it is saved forever.

Burst your greed cloud

Another important advice given by the rich man was to clear out the bubble of greed in judgment. There is a huge difference between having big dreams and letting greed influence your decisions. Be cautious when someone promises you something with absurdly good returns that seem too good to be true. It’s not always a scam, but it often is.

What is earned is not yours until invested

The book mentions the concept as ‘what you earned is not yours to keep.’ Meaning thereby, that wherever you will spend that money like on clothes etc., will give the seller the benefit. To correct this, it is important to invest it somewhere so that it benefits you. Invest it somewhere that you own forever.

Take risks and get luckier

‘If you gamble more, you will make money.’ This is the last advice given to the young boy. Investment demands taking risks and not just sitting ideal and depending on luck. You have to try every means to bend all odds in your favor. It is the only way to get more chances of achieving success.

In a nutshell, the book is broadly on two principles. First is to save 10% from the earning and secondly, assume every penny as a worker and make sure that it makes more money. Also, the book can act as a perfect role model for people in everyday life to become successful financially.

Tell Us What You Think
0Angry

0 Comment

Leave a comment