Hombre más rico de Babilonia

"Money is the medium by which earthly success is measured. 
 Money makes possible the enjoyment of the best the earth affords. 
 Money is plentiful for those who understand the simple laws which govern its acquisition. 
 Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon, six thousand years ago." 

The above verse is taken from a book that was written in 1926. Irrespective of the fact that the book is 97 years old, the content inside is as fresh as a cherry blossom. It's George Clason's "Richest Man in Babylon". 

Money is the most fundamental thing in our daily lives. It's not worth more than a glass of water, but it isn't less than that either. The book is an amazing collection of 146 pages that will help you accumulate, preserve, and grow your wealth. For all those who are as passionate about money as any other person out there, this book is a must. I have read it twice, and every time I pick it up, I can guarantee that I will find something new that I missed the last time. The wisdom that this book contains can be applied in the 21st century as well. The book deserves to be on every shelf in a library. Until then, let me enlighten you with some basic principles written down in this century-old book to attain wealth. Enjoy. 

1. Start thy purse to flatten (invest intelligently).

Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth will grow. The sooner you plant that seed, the sooner the tree will grow. And the more faithfully you nourish and water that tree with consistent savings, the sooner you may bask in contentment beneath its shade. "For every ten coins thou placest within thy purse, take out nine for use. Your purse will start to flatten at once, and its increasing weight will feel good in your hand and bring satisfaction to your soul. This is what Arkard, the richest man in Babylon, has to say about the first rule. For each 10 coins, save 1 and spend the remaining 9.

2. Control thy expenditure.

Confuse not the necessary expenses with thy desires. Each of you, together with your good families, has more desires than your earnings can satisfy. Therefore, your earnings are spent to gratify these desires insofar as they will go. Arkard says, "Just as weeds grow in a field wherever the farmer leaves space for their roots, even so freely do desires grow in men whenever there is a possibility of their being gratified". Therefore, engrave upon the clay each thing for which thou desirest to spend. Select those that are necessary and others that are possible through the expenditure of nine-tenths of your income. Cross the rest, consider them but a part of that great multitude of desires that must go unsatisfied, and regret them not.

3. Make thy Gold multiply (compound).
Compounding is the eighth wonder of the world. Arkard says that a man's wealth is not in the coins he carries in his purse; it is in the income he builds, the golden stream that continually flows into his purse and keeps it bulging. That is what every man desires: an income that continues to come, whether he works or travels. While compounding your money, the rule of 72 should be factored in. Basically, this rule gives us an estimation of how long it would take us to double our money. Place 72 as the numerator and divide it by the rate of interest you are earning. For example, let's say I earn 10% on my money every year. So, if I divide 72 by 10, I get 7.2 years, which is the approximate amount of time it would take for my money to double. That's why you should choose an investment that can double your money faster. Investing is simple, but not easy. It requires a lot of rationality, followed by patience and basic math. Everything in investing is a doubles game. The faster you double your money, the quicker you become financially independent.

4. Guard thy treasure from loss.
"Misfortune loves a shining mark. Gold in a man's purse must be guarded with firmness, or else it will be lost. Every gold owner is tempted by opportunities whereby it would seem that he could make large sums by investing in the most plausible projects. Before investing, one should always ask a self-answering question. "Is it wise to be intrigued by large earnings when your principal may be lost? Plenty of risk means probable loss. Study carefully before parting with your treasure, with the assurance that it may be safely reclaimed. Be not misled by the urge to make wealth rapidly. Be not too confident in your own wisdom when entrusting your treasures to the possible pitfalls of investments. It is by far better to consult the wisdom of those experienced in handling money for profit. Guard your principle by investing only where your principal is safe, where it may be reclaimed if desirable, and where you will not fail to collect a fair value.

 

5. Make thy dwelling a profitable investment.
"If a man sets aside nine parts of his earnings upon which to live and enjoy life, and if some of these nine parts he can turn into a profitable investment without detriment to his well-being, then so much faster will his treasures grow". Here, Arkard talks about debt. He says that a house is a necessity. Investing in appreciating assets like a house requires less borrowed money and more of your own money. On the contrary, when buying depreciating assets like a car, always make sure to pay no more than 20% out of your pocket. Let the bank finance the remaining 80%.

 

6. Insure a future income.
The life of every man proceeds from his childhood to his old age. This is the path of life, and no man may deviate from it unless Yumraj calls him prematurely to the world beyond. Therefore, always be future-ready. Make preparations for a suitable income in the days to come, when you are no longer young, and for the family. The man who, because of his understanding of the laws of wealth, acquires a growing surplus should give thought to those future days. He should plan certain investments or provisions that may endure safely for many years yet will be available when the time arrives, which he has so widely anticipated. 

7. Increase thy ability to earn. 
Only saving like a pessimist and investing like an optimist is not enough. One needs to have a regular and growing flow of money. A capital infusion can quicken the process. First, the wealth is accumulated in small sums, then in larger ones as a man learns and becomes more capable. Desires must be simple and definite. The more wisdom we know, the more we may earn. The man who seeks to learn more of his craft shall be richly rewarded. If he is an artisan, he may seek to learn the methods and tools of those most skilled in the same line. There are certain rules that must be followed, according to Arkard. They are: 

1. He must pay his debts with all the promptness within his power, not purchasing anything for which he is unable to pay. 

2. He must take care of his family so that they may think and speak well of him.

3. He must make a will to record that, in case Yumraj calls him, the proper and honorable division of his property be accomplished. Thus, the last remedy for a lean purse is to cultivate your power, to study and become wiser, to become more skillful, to so act as to respect yourself. 

"A part of what you earn is yours to keep". Always remember this golden statement. 

HAPPY INVESTING.