October 7 is World Financial Planning Day. It falls during World Investor Week, a global campaign that runs from October 5 to 11 this year. The goal is to help people take control of their money with a plan.
To mark the day, I went back to three books on wealth. One is a parable set in ancient Babylon. Another is based on a five-year study of rich and poor habits. The third comes from a success coach who studied self-made millionaires.
The books were written decades apart. Yet they agree on the basics of a good financial plan. In this post, I share five lessons they have in common, plus a one-page plan you can adapt.
This post is general education, not financial advice.
Why I Read Three Books on Money
I've been reading diverse books on wealth. My goal is to understand how to increase my income and keep more of it. I'm learning so much, and I wish I had learned these lessons decades ago.
I first read The Richest Man in Babylon over 20 years ago. Unfortunately, I didn't take notes. So I forgot a lot of what I read. When I read it again, I enjoyed it as much as the first time. That seldom happens. We need different books for different seasons in life.
Rich Habits by Thomas C. Corley was an easy read. As I read, I saw a few adjustments I needed to make. When I'm busy, I order food instead of cooking. When it's cold, I skip my walk. For me, it's more about a shift in mindset.
The 21 Success Secrets of Self-Made Millionaires by Brian Tracy rounds out the set. When you read many books on one topic, you get a more balanced understanding. You also see which ideas keep coming up. Those are the ideas worth acting on.
Lesson 1: Start with a Clear Picture
Every plan starts with knowing where you want to go. Brian Tracy tells readers to dream big and let their imaginations run free. Picture the life you want. Where do you work? How much do you earn? How much money is in the bank?
Tracy suggests an exercise he calls thinking back from the future. Imagine it is five years from now, and you are living your ideal life. Then look back at today. Ask yourself what steps got you there. What did you start, and what did you stop? Whatever you would do differently, take the first step today.
The Richest Man in Babylon makes a similar point. Arkad, the richest man in the city, says many people never build wealth because they never truly seek it. They do not focus on it or commit to it. He also advises to have a definite number in mind for your earnings.
A clear picture gives your plan a target. Without one, you have nothing to aim at.
Lesson 2: Write Goals Down and Set Deadlines
A dream becomes a plan when you write it down. Tracy offers a seven-step formula for goals.
- Decide what you want in each area of life, especially your finances.
- Write your goals clearly and specifically.
- Set a deadline for each goal, with smaller deadlines for big goals.
- List everything you will need to do to reach each goal.
- Organize the list into a plan by order and importance.
- Take action on the plan right away.
- Do something every day that moves you closer to your most important goal.
Corley found the same pattern in his study. Successful people set goals for each day, each month, each year, and the long term. Their to-do list is their list of daily goals. He suggests ranking tasks by importance. Only include tasks you have an 80 percent chance of finishing that day.
That last tip is practical. A short list you finish builds momentum. A long list you abandon builds frustration.
Lesson 3: Pay Yourself First
This is where all three books agree almost word for word.
In The Richest Man in Babylon, Arkad learns from Algamish, a moneylender. Part of what you earn is yours to keep. So keep one-tenth of everything you earn. You will hardly miss it, and like a small seed, it can grow.
Corley's ninth Rich Habit is to save 10 percent of your gross income from every paycheck. Tracy's eighth secret is to pay yourself first. Take 10 percent off the top of each paycheck and put it in a special account for building wealth.
One ancient parable, one research study, and one success coach reach the same rule. That is a powerful signal.
Clason also has advice for anyone in debt. Live on 70 percent of what you earn. Save 10 percent for yourself. Use the remaining 20 percent to pay down your debt. You keep saving while you climb out, so you never start from zero.
If 10 percent feels out of reach, start smaller. The habit matters more than the amount at first.
Lesson 4: Control Spending and Guard What You Keep
Saving only works if spending stays in check. Clason calls this controlling your expenditure. Separate what you need from what you simply desire. Look at how you live, and ask which costs you can reduce or cut. A budget is not a punishment. Its job is to help your savings grow.
Corley adds the idea of moderation. Successful people avoid extremes and extravagance. Tracy agrees. He tells readers to question every expense and practice frugality.
Protecting your money matters as much as saving it. The Richest Man in Babylon warns readers to secure the principal and avoid get-rich-quick schemes. Seek advice from people who are skilled with money. Stay away from businesses you do not understand.
That warning fits World Investor Week. This year's themes include scam alerts and digital deception. A century-old book and a modern campaign share the same message. If an offer sounds too good to be true, slow down and check it.
Lesson 5: Build Daily Habits That Keep the Plan Going
A plan fails without follow-through. Corley's key finding is that the rich are not born that way. They develop good daily habits. That means anyone can build them.
He suggests an honest self-assessment. In a spreadsheet, list your good habits in one column and your bad habits in another. Look for patterns in how you spend each day.
All three books also stress learning. Corley says successful people work on self-improvement every day. Tracy recommends reading in your field for 30 to 60 minutes a day, which adds up to about 50 books a year. Clason's last cure for a lean purse is to increase your ability to earn. Study your craft and grow your skills.
Tracy sums it up with self-discipline. Do what you need to do on schedule, whether you feel like it. Each day, make money choices that support your long-term goals.
Small actions repeated daily are what turn a plan into results.
Your One-Page Plan
Here is your action for today. Take 20 minutes and fill in this one-page plan. Pick the parts that apply to you and skip the rest for now.
- My picture. In five years, my ideal financial life looks like this. (Write two or three sentences.)
- My top goal. The one money goal that matters most to me is this, and my deadline is this date.
- My first steps. Three things I can do this month to move toward that goal.
- Pay myself first. The percentage I will save from every paycheck, starting with my next one. Aim for 10 percent, or start smaller.
- One cost to cut. A single expense I can reduce or drop this month.
- My guard rule. Before any money decision, I will pause and check it with someone I trust.
- One daily habit. A small habit I will start this week, such as reading 30 minutes a day or tracking my spending.
Keep the page where you will see it. Review it once a month and update it as your life changes.
Conclusion
Three books, written across nearly a century, point to the same simple plan. Know what you want. Write it down with a deadline. Pay yourself first. Spend with care and protect what you keep. Then build daily habits that keep you moving.
Tracy believes success is predictable. When you do what successful people do, again and again, you get similar results. I wish I had taken that to heart decades ago. The next best time is today.
Use World Financial Planning Day as your reason to start. Fill in your one-page plan, and take the first step this week.
Books in This Post
- The Richest Man in Babylon by George S. Clason (affiliate link)
- Rich Habits by Thomas C. Corley (affiliate link)
- The 21 Success Secrets of Self-Made Millionaires by Brian Tracy (affiliate link)
Sources
If you want access to my Bookish Notes, please contact me.
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