The Most Influential Book I’ve Ever Read

Richest Man in Babylon by George Samuel Clason

I read this book when I was 15, and it changed my perspective on finances ever since.

I won’t give away all the juicy stuff, just in case you haven’t already read this book full of “golden” personal money management wisdom. This is a financial education book, written in 1926, and the story is based in the times of ancient Babylon.

The wealth of knowledge in this book, even as it relates to ancient Babylonian citizens (and the fact that it was written in 1926), it is very applicable to the financial obstacles we face today.

This book is made up of fictional characters that inquire upon their wealthy friend about his secrets to amassing such a fortune. And it is then, the financial wisdom starts to pour all over the pages in parables, short stories, and priceless quotes bursting with simple brilliance.

It’s a quick read, only about 150 pages, and the knowledge you’ll gain from it will put into perspective just how simple money management really is. There’s no dazzling tips or tricks in this book, just old fashioned saving, investing, protecting and multiplying.

I highly encourage everyone to read this book if you haven’t already, it is a timeless masterpiece that has become ever more resourceful in it’s straightforward and uncomplicated approach to personal money management, especially this day and age. Give it to your kids, as my dad gave this book to me, and plant a seed in their minds that will ensure a financially prosperous future.

Here are some really awesome “Babylonian” financial wisdom excerpts from the book:


Start thy purse to fattening

         Control thy expenditures

Make thy gold multiply

    Guard they treasures from loss

             Make of thy dwelling a profitable investment

                Insure a future income. 

                     Increase thy ability to earn.


The 5 Laws of Gold – From The Richest Man in Babylon

  1. Gold comes gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family
  2. Gold labours diligently and contentedly for the wiser owner who finds for it profitable employment, multiplying even as the flocks of the field
  3. Gold clings to the protection of the cautious owner who invests it under the advice of men wise in its handling
  4. Gold slips away from the man who invests it in business or purposes with which he is not familiar or which are not approved by those skilled in its keep
  5. Gold flees the man who would force it to impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment



Personal Financial Report & M.I.P (Monthly Investment Plan)

Here I’m going to illustrate my personal financial report followed by my monthly investing allotment “plan” (M.I.P.)

My income:

I earn approximately $5,000 a month. $60,000 a year, approximately. I am fortunate that I have a stable and reliable income at my age to use as a foundation to build my investment portfolio. But there are expenses…


My current (approximated) monthly expenses: 

Vehicle & Insurance – $650 (wonders of driving in my age in California)

Rent – $750 (small studio apartment)

Utilities – $200

Food & Gas – $450

Education – $350

Miscellaneous – $300

Total Expenses = $2,700

Income After Expenses: $5,000 – $2,700 = +$2,300

Not bad. Realistically, my expenses monthly vary because I do provide financial support for my mother and some other family members from time to time, but it still approximates to what was stated above.



Also, I dedicate $500 a month to my “Buy A House” fund (important asset), and an additional $500 a month to a “Oh Shit!” fund.


Actual Dollar Amount for Investing:

This leaves me with about $1,300 a month. Leaving the $300 for a buffer of safety, I plan to invest $1,000 a month to build a high-yielding portfolio. About 20% of my total net income.



In theory, in 5 years X $1,000 monthly investment with an average 5.5% dividend yield (since I’m personally seeking the highest yielding stocks on the market) – I’ll be raking in $3,300 annually/$825 quarterly from dividends.

Seems like a good starting point. Although I know plans don’t always go, well, according to plan, I’d rather have one than not. Especially with finances, it is easy to get swept away in the consumerism and spend all of our hard earned money. But those days are over for me, it’s time I start making my money work hard!


What is your M.I.P.?


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Portfolio Update – 07/14/2017

I’ll kick this site off by giving a quick look into my current holdings. I know my current holdings are rather weakish, however, I had to start somewhere. I’ve been rather passive on my recent investing habits, but that is going to change. I am developing a realistic and passive financial-plan to invest more heavily into dividend stocks, which I’ll write about soon.

Here is my current portfolio snapshot (yes, it’s currently only one stock):

Stock Ticker: ABR – Arbor Realty Trust (REIT)

Currently: 179 Shares, purchased @ $8.30 w/ Yield @ 8.75%

Total Cost: $1,485.70

Estimated Annual Dividend: 128.88 / Quarterly: 32.22


Why REIT’s?

I did a lot of research into REIT’s, and I really liked what I found. First of all, they are income-producing real estate companies that pay out at least 90% of their profits as dividends. They also have very solid overall performance. Despite the 2007-08 real estate market crash, they’ve generated a 14% annual return. That is better than the S&P 500’s return between the same time period, which was only 12%.

But as with everything good, there is always a downside. The dividends paid by REIT’s are subject to taxation as ordinary income, not capital gains tax. So, if you’re in a high tax bracket, this may not be favorable. However, in my current position, it is still beneficial. Secondly, REIT’s are known to be volatile, often acting with non-traditional market behaviors. However, as an investor, ups and downs shouldn’t be all that concerning. We are in it for the long haul, reaping those delicious dividend rewards.

Why Arbor Realty Trust?

It’s shown decent and promising growth reflected in the financial reports, along with solid fundamentals such as assets, net profits, liabilities, etc. Numerous analyst’s have concluded that ABR is undervalued, and has tremendous growth potential. Ivan Kaufman, the CEO is personally heavily invested in the company, which I always see as a good indicator of the company’s overall promising future. With all that aside, what I really love is the cheap price, with the very high yield and it’s growth potential. ABR has shown steady and maintainable growth since it’s bottom in 2009, I believe the company will come back stronger than ever.

Here’s just a chart I grabbed off of, highlighting ABR’s undervaluation and high earnings momentum.

Earnings Momentum Vs Relative Valuation

As you could see, on the top right ABR-US, ranks high on the Undervalued/High Earnings Momentum chart.

Thanks for reading, I’ll provide more updates soon, just thought I’d provide a little insight into what I’m working with so far. Thanks for reading.



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