Building wealth is one daunting task that only a few get right. Through simple storytelling, George Clason in The Richest Man in Babylon shares timeless (still working after 90 years) financial principles for anyone to build wealth.
Whether you are an entrepreneur, salary earner, freelancer or student, it is taxing! One time, you are basking in thousands of money for a job done, salary or even pocket money (as the case may be), but in the following week, you just cannot explain how the money went down the drain.
The questions on the lips of each of us remain the same; “what, when and how exactly did I spend the money? How did my pockets become empty? You keep checking your expenses, but you still cannot phantom how you got broke! Well, this over 90-year-old book, “The Richest Man in Babylon” by George Clason has some practical solutions for you. Read on.
Lets talk about the book first.
The book is described as “the Bible of financial freedom,” and in it, George Clason shares timeless (still working after 90 years) principles of financial success through simple storytelling. The ones I am discussing here are George Clason’s first 3 financial principles to grow wealth.
1. PAY YOURSELF: Have you ever thought of paying yourself a salary not only as an entrepreneur but even as a salary earner? No? Well, that is one of the secrets of becoming richer. According to the author, “a part of all you earn is yours to keep”. If you pay yourself after you are been paid for a job even if it’s just one-tenth of the money, you are a step closer to becoming richer.
Even though you may not have enough to spend, you would have learnt how to live less than what you earn. “Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow. The sooner you plant that tree, the sooner shall the tree grow”.
2. TAKE ADVICE ABOUT YOUR SAVINGS FROM EXPERTS: Advice is one thing that is easily given by anyone but is careful about taking them. Will you take a piece of financial advice from a doctor or ask about roofs from a plumber? This is why a doctor is different from a pharmacist and a pharmacist different from a chemist. Do not send a hairdresser to get you tailoring materials just because he/she is going to the market.
Hence, you should seek advice from only those who become competent through experience. According to George, “He who takes advice about his savings from one who is inexperienced in such matters shall pay with his savings for proving the falsity of their opinions”. Take your questions to the experts. Not only will this save you time but will also cut your costs. Be wise.
3. MAKE YOUR EARNINGS WORK FOR YOU: Do not say that because you have saved enough money, then you go on shopping or merriment spree. Let your savings work for you. Invest them in profitable business. The savings should give birth to other savings so that you may enjoy many merry days without regret or debt. Algamish, the moneylender said, “you do eat the children of your savings. Then how do you expect them to work for you? And how can they have children that will also work for you?”
A summary of the lessons includes spending less than what you learn. Ensure your treasure works for you. Insure an income for the future. Invest your money in a way you won’t lose it. Counsel with wise men. Seek the advice of those who handle money on a daily basis. Do not overstrain and try to save too much. Do not also be afraid to spend. Be modest either in saving or spending.
Isn’t it amazing how these 90-year old financial principles still apply to our today’s lifestyle? If you want to learn more ways to build your wealth, then grab a copy of George Clason’s “The Richest Man in Babylon”.