You would think that managing finances would be more straightforward today with all of the innovations in the financial industry — the use of technology, artificial intelligence, and more information on the web to better educate consumers. I believe that the opposite is true. We are more confused about how to manage our financial portfolios by having too much information at our fingertips. We are overloaded with information and uncertain on which source to trust. This reason is why we need to build a knowledge base on the fundamentals of financial literacy.
We are too busy looking at the next big thing. We want to make money fast without putting in the hard work. The concept of getting rich schemes is all make-believe. If it sounds too good to be true, then the chances are that this may not be worth your time. A good example is Bitcoin. A lot of people jumped on the bandwagon in investing in Bitcoin. The value of Bitcoin was driven up by hype. Eventually, people lost a lot of money in their investment. This example of Bitcoin is a good reason why we need to understand the basics of finances.
The Richest Man in Babylon is a book written in 1926 by George S. Clason. This book is considered to be one of the cornerstones by the business community in teaching people the basics of managing finances through parables. What is interesting is that initially, the parables were separate stories given to customers as pamphlets at banks. The settings of each of the leaflets took place in Babylon. Each booklet discussed an essential financial lesson to consumers. Eventually, the brochures were assembled together to be published a book in 1926.
In the book, they discuss experiences such as the concept of saving to become financially secure by keeping a part of your earnings. The lesson of saving money is nothing new, but the way they explain how to save your money through storytelling will help the lesson stick. Sometimes, taking lessons from a book published in 1926 can provide the clarity that is needed for today. Check out the book on Amazon and learn the fundamentals of managing your finances.