The Richest man in Babylon – Review

First of all, of all the books I have read, I think this books is one of the most relevant and realistic book that any person can read. It is relevant and relateable to any situation or occupation, whether you are a burger flipper or a desk jockey.

The book gives you easy to follow rules about money and explains the meaning and reason for each rule. These rules taught me to work with my money in business and in life and to avoid simple investment mistakes.

The book starts off by telling stories of ordinary men that are slaves in Babylon. As a slave you have only one life path, to work on building the wall around Babylon. This is a life of misery and in essence death. The only other way to live is to try and sell yourself to merchants before you’re sold as a slave to work on the wall. This is a book about those you had the courage to sell themselves.

The book follows the stories of various “slaves” in their journey to make a life for themselves. Its and interesting read that allows you to live a day in someone else’s shoes.

I have read a lot of books on investments. Most Investment type books are either boring or lack real value to its readers. The Richest man in Babylon is not one of them. It’s an interesting book that keeps the reader engaged and intrigued. It is well written and a it really gives the average persons a starting point on how to start your journey to financial freedom.

This is my two cents on reading The richest man in BabylonThe Richest Man in Babylon: (The Success Secrets of the Ancients - the Most Inspiring Book on Wealth Ever Written) by [Clason, George S., Editors, GP]

I have $5000 to invest, how do I start ?

Well it depends on your situation. If you’re an expat like me, I would suggest investing it in the stock market. This way would be better as your money is more liquid and you can get a return of about 8% on your money per year. If you’re not an expat, living in another country, then you have other options like investing in real estate to earn rental income. However, investing in real estate is more complicated because you have to do a lot of research on where to buy, at what price etc, to make sure you get a good deal and earn a positive cash flow.

One of my expat friends asked me if he should buy Facebook shares since the stock price was down and he only has $5000 to invest. In his case it would be better to invest it in a global index or ETF fund and a AAA rated gov bond ETF. (GLobal index funds invest in all stocks across the board). This way he could own not only Facebook shares but other shares like Amazon, Apple, Microsoft etc. His capital would be better diversified. He should divide his savings into two and buy $2500 worth of shares in a global index or ETF fund and the other $2500 into a global AAA rated bond ETF fund. For Example:

$2500 in

Vanguard Funds plc (VWRL) FTSE All-World UCITS ETF USD

and the other $2500 in

iShares Global AAA-AA Govt Bond UCITS ETF

This is really easy to do and after buying these shares he doesn’t have to worry about it. He could just sit on it and wait. After a year, when he has saved up a little bit of extra money,he could buy more shares.

 

 

The Journey Begins

Hello!

My name is Rudolf. I’m an expat from South Africa living in South Korea. I’m an investor/Entrepreneur that’s on a journey to become financially independent. I started this blog because I found it difficult to find other people with similar interests. I want to build a network of friends where we can work together to find solutions and partners for our en devours. We can share Idea’s and tips. As the saying goes “As an individual.  you can achieve great things but as a group or team you can achieve impossible things” I will post on this site weekly, about my journey to becoming financially free as well as tips and knowledge I acquired over the past few years.

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