Twice I’ve built wealth relative to my age and twice I’ve lost most of it due to poor finical discipline, financial education and ultimately my poor financial decisions. I’m on a quest to build my financial foundation. I desire to be a rich man and live the life of my dreams. I refuse to be a slave to money. “The Richest Man in Babylon” helped bring me light in financial darkness.
The Richest Man in Babylon is a book by George Samuel Clason that dispenses financial advice through a collection of parables set in ancient Babylon. Through their experiences in business and managing household finance, the characters in the parables learn simple lessons in financial wisdom.
“Where the determination is, the way can be found.” – George S. Clason
“In those things toward which we exerted our best endeavors we succeeded.” – George S. Clason
“The reason why we have never found measure of wealth. We never sought it.” – George S. Clason
For many years I’ve wished to become wealthy but I’ve never truly desired it. Wishing and waiting for something won’t make it happen. I found I must be a man of action and take responsibility for my destiny. I believe only though responsibility, hard-word and discipline are my financial dreams achievable.
1: A Part of all I Earn is Mine to Keep.
“A part of all I earn is mine to keep.’ Say it in the morning when you first arise. Say it at noon. Say it at night. Say it each hour of every day. Say it to yourself until the words stand out like letters of fire across the sky.” ― George S. Clason
The first lesson drilled down by to the book is simple. Pay yourself no less than 10% out of your earnings to build wealth, if you can afford it then invest even more. This is the first key lesson and throughout my 5 years of adulthood I’ve followed this principle loosely but failed to grasp the entire significance of it. This is the first step, the most fundamental one to build wealth. Without money it’s impossible to make money make more money.
“Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family” – George S. Clason
2: Invest Wisely – (My Greatest Financial Failure)
“Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.“– George S. Clason
If you invest your money well, your money will simply make more money. This has been my greatest blunder. I’ve been good at step 1 but twice have made poor investment decisions costing me my principle investment each time. I’ve also failed to set money aside to earn interest. I’m committed to making educated financial decisions and continuing my financial education. Mistakes may happen but I’m committed to never repeating past ones.
3: Find a Mentor or Someone Wise in the Ways of Investing.
“Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.” – George S. Clason
At This I have failed completely. To proud and to ignorant to seek advice from someone who knows much more than me in financial matters. No more. I am committed to seeking out Men and Women wise in the ways of investing and can help me toward my financial future.
“It costs nothing to ask wise advice from a good friend.” – George S. Clason
4: Invest in What you Know or Someone You’re Confidant In
“Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those who are skilled in its keep.” -George S. Clason
This to I have failed miserably. I invested in a home cleaning business which I started knowing nothing. Needless to say it cost me thousands and I was quickly out of business. I’m committed to only investing in the crafts that I know well or people that I know are confidant in their crafts.
5: Don’t Become Overzealous or Tricked with the Promise of High Returns.
“Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.” -George S. Clason
The worst option is to invest in anything that promises absurdly good returns. Take gambling as an example. I haven’t yet made this mistake but on the previous financial path I was following I was sure to eventually.
Invest in Yourself.
I highly recommend investing some time to study this book and understand the principles behind each story. I’ve read it twice so far and plan to read it many more times until the lessons are burned into my mind and I act upon the principles subconsciously. It’s brought certainty and clarity in an uncertain financial climate.