THE RICHEST MAN IN BABYLON TAKE AWAYS {5/40}

By The stash — 05 Sep 2026

My simple but effective budget that allowed me to be debt free

Budget Your Expenses

To get to a goal you need a vehicle to help you. To regulate your spending your vehicle must contain a budget. Now I know what you're thinking, why does it matter? It does nothing.

Arkad, the richest man, explains what budgeting really does and advises how best to go about knowing your budget. First, he says, control your expenditure. To budget effectively, you need to find where your leaks are, and you cannot identify them with the faucet on full blast, so limit it for a time to allow yourself the chance to identify and patch them. Budget your necessities, there's a clear distinction between what's classified as a necessity, an investment, and a worthwhile want (not wants that aren't worth it).

A necessity is something you spend money on that allows you a basic, decent quality of life, bills, rent for shelter, utilities to power the shelter and give you light, water to keep clean, gas and electricity to cook and power your shelter.

An investment is simple.something that will make your money work and the earnings work once produced ,indefinitely.if it does not fall in the category of making you money, it doesn't count.an addition to this is self investment this is anything that will progress your attributes in different ways.keep this to a minimum in the beginning up to two a month.

A worthwhile want is something you buy that has reusable value, or can be repurposed. In the beginning, it's important to keep things simple, black and white, remove the nuances to start, then add them back later once you've developed healthier habits and a better understanding of your spending patterns.

.rootx1*

Seeing the figures in front of you makes you more conscious than keeping it in your head. When it's out of sight, it's out of mind, so see everything, the bad, the good, because they're in your head, you can justify it countless times. personally I stand by a budget as one of the ways I became debt free, because it allowed me to see my leaks clearly and formulate a financial plan that I was comfortable with to attack my debt.