Sanjeev Kalra
Exactly one hundred years ago, a series of short stories titled The Richest Man in Babylon changed the way the world looked at a paycheck. Its core message was revolutionary in its simplicity: “A part of all you earn is yours to keep.” In India, we are raised with a deep culture of Bachat (saving), yet we often treat it as an afterthought—saving whatever is left at the end of the month after everyone else, from the landlord to the local kirana store, has been paid.
The Failed Mapmaker’s Masterpiece
The author, George S. Clason, wasn’t a banker; he was a mapmaker by profession. Although his successful map publishing business was later destroyed by the Great Depression, between 1920 and 1924 he began writing small lessons set in ancient Babylon—a city he admired because it became the wealthiest in the world through human grit rather than natural resources. These lessons were originally published as individual pamphlets distributed by banks. They became so popular that in 1926, they were compiled into the book we read today. Clason used a setting from 4,000 years ago to show that while technology changes, the “laws of money” are as unchanging as gravity.
The 100-Year Wisdom: ‘Pehle Aap’
This philosophy flips the traditional script. It suggests that you are your most important creditor. Before you pay your bills, you must “pay yourself.” This isn’t about greed; it’s about “Aatmanirbharta” (self-reliance). By setting aside 10% before a single rupee is spent, you aren’t just saving money; you are buying your future freedom.
Why It Resonates in India Today
As we transition from a nation of traditional savers to a nation of modern investors, the “Pay Yourself First” rule has found a perfect home in the SIP (Systematic Investment Plan).
Your Centenary Action Plan
As we mark a century of this golden rule, the goal remains the same. Whether you call it “Paying Yourself First” or “Apni Kamai, Pehle Apni Padhai”, the logic holds firm.
Sanjeev Kalra is a retired IPS officer. He has been following mutual funds for the last 15 years. In this column, he will talk about his favourite mutual funds. His email is : sanjeevkalra1@yahoo.com