So many books has been written, and so many speeches has been made on how to become rich, but none in the opinion of the writer compares to The Richest Man in Babylon.
The book written in 1926 by George S. Clason through a collection of parables set 4,097 years dispensed financial advice that has remained relevant 97 years afterwards.
Do you want to get rich, a compliance to the principles elucidated in the book, this writer believes will go along way in helping get there.
Seven cures for a lean purse!
First cure: Start thy purse to fattening – A part of all you earn is yours to keep (simply put, pay yourself first). Arkad (a character in the book) advises;
“For every ten coins thou placest within thy purse take out for use but nine. Thy purse will start to fatten at once and its increasing weight will feel good in thy hand and bring satisfaction to thy soul”.
The advise as given in the book is to apply in all circumstances, Arkad gave example of those who are paying off debt to buttress his point; consistency.
Second cure: Control thy expenditures (simply put, control your expenses).
“The gold we may retain from our earnings is but the start”, and, “What each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary”, and, “Confuse not the necessary expenses with thy desires”
Essentially, this is learning to live within your means and avoiding lifestyle inflation.
Third cure: Make thy gold multiply (simply put, invest).
“The earnings it will make shall build our fortunes … Learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you”.
Put your money to work by making smart investments and taking advantage of time and compounding interest.
Fourth cure: Guard thy treasures from loss (simply put, avid get-rich-quick schemes).
“Is it wise to be intrigued by larger earnings when thy principal may be lost? I say not. The penalty of risk is probable loss. Study carefully, before parting with thy treasure, each assurance that it may be safely reclaimed. Be not misled by thine own romantic desires to make wealth rapidly”.
Preservation of capital is an essential tool in business and investment successes, hence the need to know your risk aversion and understand the risks being undertaken.
Fifth cure: Make of thy dwelling a profitable investment (simply put, work towards owning your home).
“I recommend that every man own the roof that sheltereth him and his”, and, “Nor is it beyond the ability of any well-intentioned man to own his home”.
Rather than pay rent, why not pay towards owning the house you leave, is the crust of this advise.
Sixth cure: Ensure a future income (simply put, plan for retirement).
“Therefore do I say that it behooves a man to make preparations for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them”.
Retirement planning, insurance, etc, anything that will earn you income in future when it is needed, is advisable.
Seventh cure: Increase thy ability to earn (simply put, develop skills to increase your income).
“The more of wisdom we know, the more we may earn”, and, “That man who seeks to learn more of his craft shall be richly rewarded”.
Position yourself to make more money by improving your skills and making yourself more employable.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur