Analysis Of The Book The Richest Man On Babylon By...

Morals and principles in business is what has kept the world going for centuries and what continues to fuel progress today. These ethics have not changed much since the book, â€Å"The Richest Man in Babylon,† was written by George S. Clason originally in 1926. In this book, Clason discusses a unique set of financial strategies and standards, such as the â€Å"The Seven Cures,† that relate with the class, Agricultural Financial Management, and life in general. With this book being written in the 1920s, it was a great time for the people living during that era, until 1924 when agriculture started witnessing the factors of the Great Depression. Although the book is set in Babylonian time, Clason created the parables in a storytelling format that makes†¦show more content†¦Although a budget is one part of this process, we must learn to save money first. Specifically, in this book it says to set aside one-tenth of what we earn and save it (ch.5). Setting aside one- tenth of what we earn allows us to make more suitable decisions on what we do with the other nine-tenths to live our daily lives. After a certain point, the one-tenth that we save every time we earn grows more and more to be able to buy the things we want or even really need. Saving a tenth of what is earned and budgeting the rest is only two of the seven cures that Arkad relays to the group of students. For the tenth that is saved, his third cure is to simply invest it. Compound interest is wonderful when it comes to saving money versus when borrowing money because both the principal and interest accumulated earn interest. By investing the saved money, it then becomes much larger and even greater income (ch.8). Although this may sound great, the fourth cure tells us that we must learn to secure small amounts before investing in substantial amounts. In class, we have learned that where there is risk, there is gain or loss. Whether we decide to loan the money or finance it, we must a ssure that we are loaning it to a reputable source or understand the dangers that lie in investing it (ch.8). Taking on another perspective, the fifth cure is to, â€Å"Own thy own home.† Mortgages were set so that