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BOOK REVIEW By Phillip Karugaba

The Richest Man in Babylon: by George S. Clason

(Signet, 144 pages) (Aristoc Ug. Shs. 18,800/=)

As Uganda, struggles to break the shackles of a peasant economy and take its place among capitalist nations, we as individuals necessarily get swept up into the world of personal finance. Gone as the days when food came from the ‘lusuku’ at the back of the house! Today you sell your sweat hopefully to the highest bidder, and spend that income on meeting you needs. Special loan offers seem to multiply in competition with the mobile phone and car latest offerings. It is this severe contest on spending decisions that dominates the subject of personal finance. In his classic, The Richest Man in Babylon, George S. Clason gives basic home truths on personal finance.

Clason offers those ambitious for financial success insights to acquire money, keep money and make their surpluses earn more money. Clason takes us to the days of the ancient wealthy city of Babylon, speaking of gold coins, lean purses and chariots, where we learn the secrets of the rich merchant Arkad on saving, investing, and managing debt.

Is a saving what you have left of your salary after meeting all expenses or what you deduct upfront from your income? When you have reaped handsomely from your investment (read Stanbic IPO) do you immediately splash out on the dream car or do you re-invest? To the wise old Arkad, you must deduct the saving upfront. You cannot eat the children of your golden slaves (money) until they themselves have had children and grandchildren. The Baganda talk about eating eggs and missing out eating the whole chicken!

What is the advice to the debt-ridden? Believe it or not your creditors much rather have you alive working to pay them, than dead. Like the Batooro say rather a debtor moves than dies. What is required is a plan to settle the debts regularly and faithfully from your earnings.

The Richest Man in Babylon is an excellent foundational piece in personal finance. The book is truly inspiring, easy to read, interesting, witty and loaded with lessons for life, acquiring money, keeping money and making money earn more money.

Comments

  1. Anonymous1:45 AM

    Phillip,
    The Richest Man In Babylon is truly an inspiring book. I am currently reading the book and already thinking of taking up the challenge.The part that has really inspired me is,'Seven Cures for a Lean Purse' and the statement that says,"A part of all you earn is yours to keep".

    ReplyDelete

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