This article is influenced by the book “The Richest Man In Babylon” by George S Clason. Click here to purchase this book from Amazon. Or, listen to the audiobook for free from audible.
Many people complain that no matter how much we earn during the month, we are left with zero savings in our account as soon as the end of the month approaches.
So if you are someone who is going through the same phase and don’t even know what to do, then don’t worry as here, we will let you know the 5 habits billionaires have that you should too.
But if you are willing to learn the answer, take a ride with me back in time. Almost 2500 years ago, there was a city named BABYLON.
BABYLON was one of the wealthiest cities in the world back in time.
The richest man of Babylon was Arkad. Arkad was as rich as one can ever imagine being; even after paying for all the luxuries and donating money to different organizations, he was still generating more and more money.
One day, his long-lost friends came to visit him. After seeing all the luxuries and wealth he was generating, his friends said that – Arkad is way luckier than us, as you have all this money and every kind of luxury awaits you. Still, we don’t have enough money to fulfill the necessities of life compared to you.
His friends further stated that there was once a time when we used to study in the same school. We used to play side by side with each other, but back then, you had nothing compared to us, so what changed, and how did you become the richest man of Babylon.
In the name of humility, Arkad agreed to share five secrets with them, one a day. He learned those himself from a successful person such as he is today.
So here we will let you know the 5 secrets which may lead you to success that no one has ever achieved before. These are called 5 laws of gold by Arkad, and you can apply those in your life to become a billionaire from zero.
How to Become a Billionaire From Zero?
1. Build a habit to keep your earning for yourself first
The first secret he let his friends know was to keep 10% of their earnings in their savings account.
Arkad insisted if you want to be successful, save 10% of your savings into your savings account from the first salary you ever earn in your life.
Saving 10% of your salary will help you later when you keep investing it in a specific venture, and from the return you get, you can generate a lot more money than your regular salary.
But some people insist that no matter what they do, they cannot save a minimum amount of money, let alone 10% of the salary.
So the answer to this problem is in his second secret.
2. Differentiate between need and luxury
The second secret Arkad let his friends know was that you should be able to differentiate between need and luxury.
Many people like us cannot differentiate between need and luxury. I have a friend who is always complaining about money. Still, after every six months, he somehow changes his car to a newer model as, by doing this, he is keeping himself updated on the recent technology, but after changing his car, he drags a huge loan with him.
So, keeping ourselves safe from these loan problems, we should be able to differentiate between the basic needs and luxury demands we make to ourselves.
Nowadays, most of us are affected by Parkinson’s law which states that our expenses keep changing with our salary. Suppose if you are earning $2,000 per month, our expenses are also around $2,000 per month, but as our salary increases, therefore, our expenses increases with it too.
So what you need to do is to think carefully and differentiate between the basic needs and the luxury to save yourself some money from your salary.
3. Investing your Savings
Saving 10% of your salary will never make you rich. If you want to be rich, you have to invest your savings.
According to a theory stated by Arkad, when you save one gold coin, make it your servant, and now this servant will work for you to generate copper coins. Reinvest these coins and those will make more coins for you, which is how you will generate wealth.
So Arkad’s third secret is to invest the money as soon as you saved it. And also, keep reinvesting your profits.
4. Keep your capital protected
Arkad let his friends know the fourth secret of his success by giving them the example of the city BABYLON.
Arkad said the city Babylon was saved from intruders up till now because big walls protected it. Similarly, suppose you are willing to generate wealth. In that case, the first step you need to take is to keep your capital safe.
If there is a risk that your capital amount will be lost, there is no need to invest, as sometimes high risk may generate a high-profit ratio, but it may take everything back from you in case of loss. So investing in high risk is not the right decision to make.
According to Warren Buffett, the first investment rule is never to lose money and Akrad used to say the same thing to his friends.
5. Increase your knowledge with time
In his last secret, Arkad stated; the one who will gain more knowledge would eventually earn more. So you should learn to convert your knowledge into wisdom to generate wealth for a long time.
So, these are the five rules you need to follow to become a billionaire from zero as per the book “The richest man in Babylon”.
But the story doesn’t end here 😉
Years passed by, and when Arkad gets old enough to be on his deathbed, he called his son and said, if you want to take over my empire, show me you deserve all this wealth.
He gave his son a sack of gold along with a letter on it was written 5 laws of gold.
His son took the sack and went to another city, where he invested the money in a horse race and lost, and later he found out that the men who lured him into investing the coins were fraudsters.
After facing a loss, someone lured him again to invest the money in a shop, but because of no experience, Arkad’s son lost all of his money again.
Although he had never read his father’s letter before, he started reading it now and below are those 5 laws of gold –
- You should save 10% of your earnings for the future.
- Invest your savings wisely.
- Listen only to wise people and experts.
- Don’t invest in a business you don’t understand.
- Do not invest in something perilous out of greed.
Final Verdict to Become A Billionaire from Zero
The 5 laws of gold were never really written for the public; they were meant for his son, but if you pay attention to them, you’ll see a lot of rich people share the same beliefs.
People who are smart about their investments know that it’s necessary to invest 10 percent at least of their earnings in order to gain wealth.
And if you want to invest in something high risk, make sure that you’re willing to lose everything. Wealth is like a magnifying glass – the more time and money people put into studying and learning, the more they will earn.
Let us know your thoughts and how do you expect to generate wealth.
Can I become a billionaire?
There are only a handful of billionaires on the planet, but the chances of becoming one are higher than you might think. The Mexico’s wealthiest man, Mexican telecom mogul Carlos Slim Helu, earned his first millions at the age of 25 by investing in real estate. Bill Gates, the wealthiest person in the world, founded Microsoft at age 19. Many billionaires are made in the last few years who adopted cryptocurrencies very early, like Vitalik Buterin who founded Ethereum at the age of 22.
How can I get rich in 5 years?
Just follow the 5 laws of gold by Arkad. You may not become a billionaire, but you will be rich.
How do I get rich with no money?
All you need to do is follow the 5 laws of gold. You will have to change your mindset and behavior.
What can I invest in to get rich?
The first step is to keep your capital safe as per the 5 laws of gold. Then you need to start with saving 10% of your income per month. And, don’t be greedy, invest in something with low risk like stocks or dividend-paying stocks.
How can I get rich overnight?
You can’t get rich overnight. But, just by following the 5 laws of gold, you will be able to generate wealth in the long-term and get rich.