Ancient Wisdom for Modern Finances
Inspired by The Richest Man in Babylon by George S. Clason, this article shares timeless financial lessons that remain relevant today—no matter your profession or income level.
The article contains a recollection of ancient wisdom on the subject of thrift, financial planning and personal wealth based on a book by George S. Clason, The Richest Man in Babylon.
The book contains lifetime wisdom on seven cures for lean purses which are shared in this article, and the five laws of gold, which will be shared in the upcoming Third Quarter 2016 bulletin. Whether you’re a graduate trainee, nurse, a hairdresser or a billionaire, the seven cures for a lean purse, are basic personal wealth fundamentals that no man can simply brush aside. So, regardless of your vocation, you have about the same opportunity to make a fortune. These seven cures for lean purses still apply today as they did hundreds of years ago. Like the laws of gravity, the laws of making money in society are universal and do not change. Better a little caution than regret. Start by little savings
The first cure for a lean purse is to start thy purse to fattening. Spend, but onetenth of your income. That is, set aside not less than one-tenth of the money you earn. Doing this overtime, one would actually end up with more money than if one had set nothing aside. If you had one basket containing 10 eggs, and every day you put in 10 eggs in the morning and take out 9 in the evening. What would eventually happen at the end of the week? Identify your needs from wants.
Secondly, control thy expenditures. Human beings have unlimited desires for material possessions of one kind or another. One cannot satisfy all desires of the mind. Discipline yourself to spend part of your income on the things that are necessary. Delay gratification. “Desires are multitude, trying to satisfy them all is an invitation to poverty”.
Choose the right investment vehicle Make thy gold multiply. Make your money grow or earn more money. One may want to consider putting money in a Unit Trust account with local investment managers, or a savings account with local banking institutions. This is the lazy approach to making your money grow. Otherwise, you can create business opportunities for investment. These are simple recommendations one may consider, instead of putting your cash under a mattress, hoping something magical will happen to make it grow. However, the means of earning more money are not limited to these suggestions. Choose registered entities in your financial transactions Guard thy treasures from loss. Avoid putting your money into dubious acts. For example, avoid gambling or Ponzi “get rich quick” schemes. You don’t want to put your money in the hands of people who lack the experience in handling money matters. It is smart to seek the advice of those who are qualified or experienced to handle other people’s money like they would handle their own. If you want advice on how to grow vegetables in your garden, you don’t go to a pilot or a computer programmeradvice; you either go to a farmer or seek the advice of a botanist. Consider investing in property Make thy dwelling a profitable investment. Simply put, consider the possibility of owning a house as a residence for your family; so trust your loved ones can have enough space to grow, play, study and enjoy life. Make an effort to buy your house at a reasonable price. This would require time and research on the housing market. Investing in a home should be a key priority for all. Consider a cover for the unexpected Insure a future income. We live in a world full of ,uncertainty. So you want to always set aside some funds to meet any unexpected expenses. For example, expenses to cover your unplanned illness or other events in life that may occur. Putting away some money for “emergency” events would aid you and free you from borrowing money to handle those unexpected expenses. Consider making use of available insurance products to avoid disappointments. It is important to plan Financial Planning Tips – A Recollection of Ancient Wisdom for retirement and ensure your family some level of inheritance income that can continue your support for them long after you are no longer able to do so. Be financially literate Increase thy ability to earn. Everyone needs some level of skills to earn money. A Bachelor’s Degree or specific skills certificate or diploma along with a commensurate job might only be enough to earn a basic living and may not earn you enough money to reach some of your longer term career and earnings desires. Educate yourself in order to increase your skills and capacity to earn more money. “Formal education will earn you a living, but self-education will earn you a fortune”. Lastly, it is sane to seek out profitable projects, business opportunities to invest in, or other cooperative means of earning extra income, because profits are better than wages. Based on The Richest Man in Babylon – The Success Secrets of the Ancients by George S. Clason. Publisher – Signet / First published in 1926 / ISBN 0-451- 20536-7
The article contains a recollection of ancient wisdom on the subject of thrift, financial planning and personal wealth based on a book by George S. Clason, The Richest Man in Babylon.
The book contains lifetime wisdom on seven cures for lean purses which are shared in this article, and the five laws of gold, which will be shared in the upcoming Third Quarter 2016 bulletin. Whether you’re a graduate trainee, nurse, a hairdresser or a billionaire, the seven cures for a lean purse, are basic personal wealth fundamentals that no man can simply brush aside. So, regardless of your vocation, you have about the same opportunity to make a fortune. These seven cures for lean purses still apply today as they did hundreds of years ago. Like the laws of gravity, the laws of making money in society are universal and do not change. Better a little caution than regret. Start by little savings
The first cure for a lean purse is to start thy purse to fattening. Spend, but onetenth of your income. That is, set aside not less than one-tenth of the money you earn. Doing this overtime, one would actually end up with more money than if one had set nothing aside. If you had one basket containing 10 eggs, and every day you put in 10 eggs in the morning and take out 9 in the evening. What would eventually happen at the end of the week? Identify your needs from wants.
Secondly, control thy expenditures. Human beings have unlimited desires for material possessions of one kind or another. One cannot satisfy all desires of the mind. Discipline yourself to spend part of your income on the things that are necessary. Delay gratification. “Desires are multitude, trying to satisfy them all is an invitation to poverty”.
Choose the right investment vehicle Make thy gold multiply. Make your money grow or earn more money. One may want to consider putting money in a Unit Trust account with local investment managers, or a savings account with local banking institutions. This is the lazy approach to making your money grow. Otherwise, you can create business opportunities for investment. These are simple recommendations one may consider, instead of putting your cash under a mattress, hoping something magical will happen to make it grow. However, the means of earning more money are not limited to these suggestions. Choose registered entities in your financial transactions Guard thy treasures from loss. Avoid putting your money into dubious acts. For example, avoid gambling or Ponzi “get rich quick” schemes. You don’t want to put your money in the hands of people who lack the experience in handling money matters. It is smart to seek the advice of those who are qualified or experienced to handle other people’s money like they would handle their own. If you want advice on how to grow vegetables in your garden, you don’t go to a pilot or a computer programmeradvice; you either go to a farmer or seek the advice of a botanist. Consider investing in property Make thy dwelling a profitable investment. Simply put, consider the possibility of owning a house as a residence for your family; so trust your loved ones can have enough space to grow, play, study and enjoy life. Make an effort to buy your house at a reasonable price. This would require time and research on the housing market. Investing in a home should be a key priority for all. Consider a cover for the unexpected Insure a future income. We live in a world full of ,uncertainty. So you want to always set aside some funds to meet any unexpected expenses. For example, expenses to cover your unplanned illness or other events in life that may occur. Putting away some money for “emergency” events would aid you and free you from borrowing money to handle those unexpected expenses. Consider making use of available insurance products to avoid disappointments. It is important to plan Financial Planning Tips – A Recollection of Ancient Wisdom for retirement and ensure your family some level of inheritance income that can continue your support for them long after you are no longer able to do so. Be financially literate Increase thy ability to earn. Everyone needs some level of skills to earn money. A Bachelor’s Degree or specific skills certificate or diploma along with a commensurate job might only be enough to earn a basic living and may not earn you enough money to reach some of your longer term career and earnings desires. Educate yourself in order to increase your skills and capacity to earn more money. “Formal education will earn you a living, but self-education will earn you a fortune”. Lastly, it is sane to seek out profitable projects, business opportunities to invest in, or other cooperative means of earning extra income, because profits are better than wages. Based on The Richest Man in Babylon – The Success Secrets of the Ancients by George S. Clason. Publisher – Signet / First published in 1926 / ISBN 0-451- 20536-7
These ancient principles are simple, but powerful. Follow them consistently and you’ll build a strong financial foundation—one that can weather any storm.
"Formal education will earn you a living, but self-education will earn you a fortune."
— George S. Clason