I picked this book thinking that it contains some story (fable) about ancient Babylon. But I was surprised to discover that this is one of the classic book on finance. In my opinion this is the first book on finance in which the basics of money management are narrated in story like fashion.The woven story engages you and you learn the following lessons from the book:
Lesson 1: Pay yourself 1/10th of what you earn.
Lesson 2: Debt Repayment Strategy
You divide your money in this way to pay the debt
a) 1/10 th to yourself
b) 7/10 th spend on your daily needs (Expenses)
c)2/10 – Divide equally among all your creditors (Discuss this with them about your Debt Repayment Plan)
For example if you earn 1000 Rs.
a) Pay yourself = 1/10 *1000 =100 Rs.
b) Expenses =7/10 *1000=700 Rs.
c) Creditors=2/10 *1000=200 Rs.
Lesson 3: Control your Expenses so that you do not fall in to debt cycle again
Lesson 4: Invest in places you are knowledgeable.
Do not invest money in some quick rich scheme because of greed.
Lesson 5: Keep Learning to grow and enrich yourself.
Lesson 6: Guard your money from fatal loss
Lesson 7: Set up passive income.
Your money should be invested in such a way that it should earn money even when you are sleeping.
This has become one of my favorite book.Read it to refresh the financial lessons one has to learn to survive this world.