Bansir, a chariot builder has a conversation with his friend Kobbi, a musical person. They bemoan the time and effort which they used to build up their skills and become one of the best chariots builders and one of the best musicians yet they are still poor. They determined to go ask their childhood friend Arkad for advice, since he has become one of the richest men in Babylon.
On meeting Arkad, they learnt that no man had to pay for his clothes, for his food and more but that if he regularly saved at least a tenth of his income( and as much more as he could afford to save) and put that money to work earning interest, he would become wealthy. He further explains;
THE SEVEN CURES FOR A LEAN PURSE
– A part of what you earn is yours to keep: Arkad relates that he did as advised saving a tenth of his income for a year, then investing that money with a brickmaker who went on a journey to buy jewels to trade. He related this to his adviser Algamish, who castigated Arkad for his foolishness. “every fool must learn” he said, “but why trust the knowledge of a bricklayer about jewels?” would you go to the breadmaker to inquire about the stars? He who takes advice about his savings from one who is inexperienced in such matters will pay with his savings for proving the falsity of their opinions.
– Control thy expenditures: how? Some of the men ask, ‘can a man keep one tenth of all he earns in his purse when all the coins he earns are not enough for his necessary expenditures?”Arkad replied that the unusual truth is that though you all earn differently, you all have lean purses. That which we all call our necessary expenses will always grow to equal our incomes unless we protest to the contrary, Arkad tells men not to confuse necessary expenses with their desires, that all men are burdened with more desires than they can gratify. Budget thy expenses that thou may have coins to pay for thy necessities, to pay for thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings.
– Make thy gold multiply: this simply means once you have started saving at least one-tenth of that you earn, you must put that money to work earning interest. Put each coin to laboring that it may reproduce its kind.
– Guard thy treasures from loss: the first sound principle of investment is security- what is a person who wants a loan from you offering as collateral? Guard thy treasures from loss by investing only where thy principal is safe, where it may be reclaimed if desirable and where thou will not fail to collect a fair rental, consult with wise men and let their wisdom protect thy treasures from unsafe investments.
– Make of thy dwelling a profitable investment: if you pay a rent to a landlord all your life, at the end, you will have nothing to show for it, if you can instead pay a mortgage on a house, at the end of your life you will have a house to show for it. Own thy own house, this is very important for those that aim high in reality.
– Insure a future income: prepare for retirement and buy insurance so that thy family will be provided for, provide in advance for the needs of thy growing age and the protection of thy family. No man can afford not to insure a treasure for his old age and protection of his family no matter how prosperous his business and investments may be.
– Increase thy ability to earn: if a man respects himself, he must do the following, pay his debts promptly and not stay in debts, take care of his family, make a will, have compassion on those who needs help within reasonable limits. Also cultivate thy own powers to study and become wise, to be more skilful in thy ability to earn and increase.
This extract is enough to propel someone to the heights of FINANCIAL SECURITY, INCREASE and BALANCE but first you still need to identify your POTENTIAL! Your DRIVE! Your NICHE! The everyday thing we talk about in our hearts, what is that thing that keeps you up at night? What can you do? Or what work or position are you currently on? You can identify your POTENTIALS and POWER to EXCEL anywhere, create ideas, act and commit to it and then follow up on the notes above. ONLY YOU CAN MAKE THAT CHANGE FOR YOU. GOODLUCK.
Extracted from : THE RICHEST MAN IN BABYLON by George S. Clason.