The Richest Man in Babylon is a foundational book that fits into most climes. It’s quite an old book (first published formally in 1926), but it is very adaptable. The world has evolved since then and some of the admonitions under the sixth cure for a lean purse have other terms by which they are known today. Let’s take a look at some:
1. Have an emergency fund.
Without an emergency fund, one may have to go into debt to take care of emergencies, or one may have to cash out of profitable investments, eating up both capital and interests. And emergencies come in different forms! Health, disaster, layoffs, even food supply emergencies as was the situation when Joseph was in Egypt with enough food to feed the world. While there was no food for Jacob in Canaan, he had enough money to buy all the food he wanted; he was prepared!
2. Invest for life after work
Everyone has to stop working at some point! In some climes, that point of compulsory retirement is defined–55, 60, 65, 70 years, etc. In other places, it is not defined; just keep working to you cannot work again. Eventually, life catches up. We must prepare for those ” eventually” days. Pension comes in handy here. Another option is annuities. Better still, set up a business that can run with minimal supervision.
The earlier you can begin preparing for the future, the better! It is in your interest to insure a future income!