Article #20
Introduction
Technology has completely transformed the way we handle finances today. From paying bills online to hiring bookkeepers to manage personal finances remotely, everything that we do is evolving all of the time. With that said, can anything in the past compare to the knowledge and experience gained today? Or is it possible for a collection of fictional stories with roots 4,000 years ago in ancient Babylon still be relevant and applicable today?
Thankfully, the answer to this question may be found in the information provided for you below.
First off, did the title of this book capture your attention, too? Of course, it did. Even though the character described In “the Richest Man In Babylon” is a fictional person that existed as far back as 4,000 years ago, it is still a remarkably captivating subject matter for several reasons. One of the most important is that many people would like to know the secrets to become wealthy, especially when it pertains to others, like the richest man in Babylon did.
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In fact, according to the information in this book, these good sound financial principles can still be used effectively today. Based on the advice of the wealthiest man in ancient Babylon, the art of amassing wealth is really not that difficult. However, before you can accomplish your financial goals, you must meet at least these 2 minimum requirements
- Your need for money must be high on your priority list
- You need a good understanding of how money works
So, it really does not matter how far ago the principles in this book have been recorded. You can still use some of this same advice today. As such, if you want to know if this advice is still relevant, you need to consider what the author is saying. For instance, the author’s content focus was on answering questions like these listed below.
- How can people acquire money?
- How can people avoid losing their money?
- How can individuals find ways to multiply the money that they presently possess?
Additionally, here are 3 things that everyone must do to be wealthy.
1. Work for it – Don’t Procrastinate
As amassing wealth becomes a big part of an individual’s overall priorities, aggressive action must be taken. For instance, if you want to acquire lots of money, you need to work diligently to earn the living you aspire to. Simply put, working hard is a huge factor in building up wealth.
2. Master Your Craft
In addition to working hard, you need to master your craft. By mastering your craft, you will have a chance to increase your earnings potential. For example, if you want to be a wealthy chef in the U.S., spend your time creating unique tasty dishes that people will rave about. Also, start a marketing campaign to ensure your face is everywhere.
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3. Set up Your Financial Future – Pension Plan
Amassing wealth is not only about what you have access to today. it is also about making sure that your financial future is secure in advance. In essence, you need to invest in a pension plan that will pay you when you cannot work any longer.
Seven Cures For a Lean Purse
The second series of the “Richest Man in Babylon” was excellent financial advice for anyone who is looking to amass wealth. Even though this series was based on a concocted random scheme (agreed upon by the king and the richest man in Babylon), it actually bore fruits of financial wisdom that surprisingly went well. For instance, the students were introduced to the “ Seven Cures for a Lean Purse”. Here is a brief synopsis of each
#1. Thy Purse to Fattening
The process of amassing wealth starts with earned income. In fact, as you earn money, you need to deposit 10% of your earnings regularly into a savings account.
#2: Control Thy Expenditures
Pay close attention to your expenses. Don’t to be tempted spend all of the 90% that is left over from your salary on expenses that you do not need. You need to only pay for pure necessities and no more.
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#3. Make Thy Gold Multiply
Do not let your money sit in bank drawing little to no interest. You need to ensure your money is working for you, too. Similar to assigning children to different chores, your money can be earning compounding returns.
#4. Guard Thy Treasures from Loss
Let’s face it, earning money is hard work. You may even be working odd jobs to increase your wealth. Whatever your situation, you need to
avoid investing in high risks ventures, especially those that sound too good to be true.
#5: Make of Thy Dwelling a Profitable Investment
The lessons that Arkad taught also included the benefits of buying your home versus renting. He points out a wide range of financial and mental benefits, including:
- Advantages of Home ownership
- Adding equity to your financial status
- Home Appreciates and worth more over time and stability
#6: Insure a Future Income
You must plan for both seen and unforeseen circumstances. In particular, life events that affect you and your family (i.e. disability, death, unemployment). All of which can wipe out your hard savings if you are not prepared.
#7: Increase Thy Ability to Earn
By carefully planning and taking care of the first 6 cures for a lean purse, you will have the freedom to implement the 7th. Your industrious attitude will take you further in your present job. And, the money that you earn can be put toward investment opportunities that you are privy to along the way.
The Five Laws of Gold
The five laws of gold are also based on sound timeless principles. George S. Clayson cleverly shares these 5 practical lessons in the book ‘The Richest Man in Babylon’.
1. Gold Loves those Who Save 10%
To create an estate for you and your family, you must begin by saving 10% of your earnings each year. It really does not matter if you are presently poor or possess great wealth, you need to put away 10% of everything annually to protect your financial future.
2. Gold Likes to Multiply
The wise owner of gold knows how to work diligently to multiply the money. It is essential to multiply money, even if large sums of money come from unexpected achievements.
Also, you should never invest more money than you receive. If you do, it is easy to end in financial ruin.
3. Gold Loves a Cautious Owner
Gold tends to stay around a lot longer to the cautious owner. So, you should only listen to or follow the advice of wise men.
Also, never hand over your finances to an expert. Even if you are a newbie, you should always be actively involved in your own financial affairs.
4. Gold Favors those Who Study Investments
Before jumping into any business venture, you need to know exactly what you are getting into. Therefore, study investment opportunities that you are interested in first. You need the knowledge, skills, and expertise required first before you can make good investments.
5. Gold and Get-Rich-Quick Schemes Don’t Mix
If you want to protect your gold, don’t listen to get-rich schemes. There are a lot of get-rich schemes that innocent people fall for. So, get ready to turn a deaf ear to friends and family members with an itch to pull you in.
Other parables
The final chapters of the book “The Richest Man in Babylon” covered other parables that related to an individual personal financial welfare. Each of these parables supported the earlier principles. And, here’s what each of these 3 relayed to their audiences.
Better a Little Caution than a Great Regret
A huge part of being a good steward is being cautious about your investments, and how you spend money. Because money is hard to earn, you need to use a certain amount of discretion whenever you make a purchase. This is especially the case when you make a big investment in things like appliances. You want the best quality for your money.
We Cannot Afford to be without adequate Protection
You need to always make sure you protect your family and your possessions. Therefore, to avoid suffering from huge losses, you need to make sure that you buy the appropriate types of insurance (i.e. car insurance, dental insurance, medical insurance).
“Where the determination is, a way can be found.”
It takes a certain amount of determination to accomplish anything in life. Therefore, if you want to be financially secure, you need to be diligent about following your plan.
A brief biography of George S. Clason
George S. Clason is a world-renowned author and businessman. He was born on November 27th, 1874 in the state of Missouri. As the founder of the Clason Map company, he published the first U.S. and Canadian road atlas map. As a writer, he is known for publishing classics like the “Babylonian Parables.”
How the principles from this book are still relevant today.
Can fictional stories from ancient Babylon still be relevant and applicable today? The answer is yes. The practical principles in these parables transcend time, and are still being used as sound financial advice. Here are some key examples that people are using today.
Saving 10% of all earnings
Not living off the 90% of salary left over – only pay for essential items
Carefully Scrutinizing Expenses
Working Hard to Earn Income to Invest
Investing in a Pension Plan to Protect Your Future
Master a Craft to Earn More Money
Teachers, parents, business owners and others are sharing these principles with others today, especially to those that are seeking to increase their wealth. These are also outstanding practical concepts that are taught in personal financial settings.
Can we benefit from these principles by applying them?
The principles in this book can be very beneficial in a wide range of settings. From sharing these wealth principles in extracurricular courses on college campuses to teaching young adults, how to work hard and build wealth by their parents, these are sound personal financial principles that can be applied in everyday life. For instance, here are a few examples that young people can start early,
Depositing 10% of their pay check in savings before paying expenses
Only purchase essential items that you need, be selective about what you buy.
Don’t invest in good rich schemes
Be active in managing your money. You need to know where all of your money is going.
Conclusion
The Richest Man in Babylon and Other Stories or a collection of fictional stories from ancient Babylon are a timeless piece of financial wisdom. The approach used to capture the attention of the reader is not only clever but also ingenious. Since people like to know the story behind the richest man’s success, these fictitious parables are ideal for setting the scene and the interest of people all over the globe.
Sound financial advice packaged and enclosed in parables is one of the best ways to relay a relatively common sense approach to handling personal finances. Readers can also appreciate how these parables relate to how to amass wealth. It really does not matter if you are poor or wealthy, you need to always keep these principles in mind. You need to know how to recognize-rich-rich schemes and good sound investment opportunities.
You need to approach your financial decisions with caution to avoid regrets in the future. Therefore, these parables are designed to teach people how to handle their finances in a fully comprehensive manner that will lead to healthy financial lives. This is because the information in these parables addresses working hard to earn money but also how to spend money wisely at all times.
This book focuses on the present and the future needs of the family’s personal finances. So, it is important to prepare for future financial emergencies like unemployment, medical emergencies, disabilities, and even death. In fact, if you carefully follow these practical concepts then the loss of a job cannot completely wipe out the family’s savings in a short period of time. Also, when you follow the principles in this book, you can prepare for both amassing great wealth and the days that you can no longer work.
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