I had originally meant to review both financial books I've just read in the same post, but The Richest Man in Babylon by George S. Clason deserves its own review. It's a slim volume and the copyright is expired so I will make this easy and link to a PDF you can download. There. Consider yourself led to water.
The rules themselves are self-evident. The parables that illustrate the rules are what inspire you to adopt these rules for yourself. It's like learning that the way to fat loss is to eat less and exercise more. It's not enough to KNOW that, you've got to visualize integrating it into your life, you've got to make positive steps to make it happen, you've got to actually DO it. This book is helpful with THOSE pieces.
Nevertheless, I'll tell you the rules just because I want them in my notes.
1. Stop living on the edge and get some savings. "First, the plan doth provide for my future prosperity. Therefore one-tenth of all I earn shall be set aside as my own to keep."
2. Budget to live on 70% of what you bring in. "Second, the plan doth provide that I shall support and clothe my good wife ... Therefore seven-tenths of all I earn shall be used to provide a home, clothes to wear, and food to eat, with a bit extra to spend, that our lives be not lacking in pleasure and enjoyment. But he doth further enjoin the greatest care that we spend not greater than seven-tenths of what I earn for these worthy purposes. Herein lieth the success of the plan."
3. Put together a payment plan with 20% of your earnings and start someplace. Anyplace. Just get started. "Third, the plan doth provide that out of my earnings my debts shall be paid. Therefore each time the moon is full, two-tenths of all I have earned shall be divided honorably and fairly among those who have trusted me and to whom I am indebted. Thus in due time will all my indebtedness be surely paid. Therefore, do I here engrave the name of every man to whom I am indebted and the honest amount of my debt. I visited my creditors and explained to them that I have no resources with which to pay except my ability to earn, and that I intent to apply two tenths of all I earn upon my indebtedness evenly and honestly. This much can I pay but no more. Therefore if they be patient, in time my obligations will be
paid in full."
1. Start thy purse to fattening. For each ten coins I put in, to spend but nine.
2. Control thy expenditures. Budget thy expenses that thou mayest 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.
3. Make thy gold multiply. Put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse.
4. Guard thy treasure 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. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments.
5. Make of thy dwelling a profitable investment. Own thy own home.
6. Insure a future income. Provide in advance for the needs of thy growing age and the protection of thy family.
7. Increase thy ability to earn. Cultivate thy own powers, to study and become wiser, to become more skillful, to so act as to respect thyself. Thereby shalt thou acquire confidence in thy self to achieve thy carefully considered desires.
There are quite a series of parables. Other morals crop up:
This book was originally published in the high-flying days before the Great Depression. It is worth reading at least once and won't take too long. If you know all this stuff already it will re-enforce it. If you don't know this then this sort of information can save your life in hard times and make it easier in good times. That's as strong an endorsement as I've ever given a book. A free book. That I linked to. Drink up!
Have you ever noticed how movies set in the seventies seem dated, but if they were set in the distant past they don't? For example, compare "All The President's Men" to "Butch Cassidy and the Sundance Kid". Point is, if you put something back in time it stays fresh. The author, George S. Clason does this by setting his lessons in the ancient times of Babylon. The language is vaguely King James-ish but it's not hard slogging once you listen to his voice. He's amusing and immediate, actually. This is one of those classics that is a classic exactly because it's worth reading.
The rules themselves are self-evident. The parables that illustrate the rules are what inspire you to adopt these rules for yourself. It's like learning that the way to fat loss is to eat less and exercise more. It's not enough to KNOW that, you've got to visualize integrating it into your life, you've got to make positive steps to make it happen, you've got to actually DO it. This book is helpful with THOSE pieces.
Nevertheless, I'll tell you the rules just because I want them in my notes.
Don't be a slave, use determination to get out of debt in three easy steps
1. Stop living on the edge and get some savings. "First, the plan doth provide for my future prosperity. Therefore one-tenth of all I earn shall be set aside as my own to keep."
2. Budget to live on 70% of what you bring in. "Second, the plan doth provide that I shall support and clothe my good wife ... Therefore seven-tenths of all I earn shall be used to provide a home, clothes to wear, and food to eat, with a bit extra to spend, that our lives be not lacking in pleasure and enjoyment. But he doth further enjoin the greatest care that we spend not greater than seven-tenths of what I earn for these worthy purposes. Herein lieth the success of the plan."
3. Put together a payment plan with 20% of your earnings and start someplace. Anyplace. Just get started. "Third, the plan doth provide that out of my earnings my debts shall be paid. Therefore each time the moon is full, two-tenths of all I have earned shall be divided honorably and fairly among those who have trusted me and to whom I am indebted. Thus in due time will all my indebtedness be surely paid. Therefore, do I here engrave the name of every man to whom I am indebted and the honest amount of my debt. I visited my creditors and explained to them that I have no resources with which to pay except my ability to earn, and that I intent to apply two tenths of all I earn upon my indebtedness evenly and honestly. This much can I pay but no more. Therefore if they be patient, in time my obligations will be
paid in full."
LO, MONEY IS PLENTIFUL FOR THOSE WHO UNDERSTAND THE SIMPLE RULES OF ITS ACQUISITION
(Seven Cures for a Lean Purse)
(Seven Cures for a Lean Purse)
1. Start thy purse to fattening. For each ten coins I put in, to spend but nine.
2. Control thy expenditures. Budget thy expenses that thou mayest 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.
3. Make thy gold multiply. Put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse.
4. Guard thy treasure 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. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments.
5. Make of thy dwelling a profitable investment. Own thy own home.
6. Insure a future income. Provide in advance for the needs of thy growing age and the protection of thy family.
7. Increase thy ability to earn. Cultivate thy own powers, to study and become wiser, to become more skillful, to so act as to respect thyself. Thereby shalt thou acquire confidence in thy self to achieve thy carefully considered desires.
THE FIVE LAWS OF GOLD
The First Law of Gold
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.
The Second Law of Gold
Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
The Third Law of Gold
Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
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 skilled in its keep.
The Fifth Law of Gold
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.
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.
"Any man who will put by one-tenth of his earnings consistently and invest it wisely will surely
create a valuable estate that will provide an income for him in the future and further guarantee safety
for his family in case the gods call him to the world of darkness. This law always sayeth that gold
cometh gladly to such a man. I can truly certify this in my own life. The more gold I accumulate, the
more readily it comes to me and in increased quantities. The gold which I save earns more, even as yours will, and its earnings earn more, and this is the working out of the first law."
create a valuable estate that will provide an income for him in the future and further guarantee safety
for his family in case the gods call him to the world of darkness. This law always sayeth that gold
cometh gladly to such a man. I can truly certify this in my own life. The more gold I accumulate, the
more readily it comes to me and in increased quantities. The gold which I save earns more, even as yours will, and its earnings earn more, and this is the working out of the first law."
The Second Law of Gold
"Gold, indeed, is a willing worker. It is ever eager to multiply when opportunity presents itself.
To every man who hath a store of gold set by, opportunity comes for its most profitable use. As the years pass, it multiplies itself in surprising fashion."
To every man who hath a store of gold set by, opportunity comes for its most profitable use. As the years pass, it multiplies itself in surprising fashion."
The Third Law of Gold
Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
"Gold, indeed, clingeth to the cautious owner, even as it flees the careless owner. The man who
seeks the advice of men wise in handling gold soon learneth not to jeopardize his treasure, but to preserve in safety and to enjoy in contentment its consistent increase."
The Fourth Law of Goldseeks the advice of men wise in handling gold soon learneth not to jeopardize his treasure, but to preserve in safety and to enjoy in contentment its consistent increase."
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 skilled in its keep.
"To the man who hath gold, yet is not skilled in its handling, many uses for it appear most
profitable. Too often these are fraught with danger of loss, and if properly analyzed by wise men, show small possibility of profit. Therefore, the inexperienced owner of gold who trusts to his own judgment and invests it in business or purposes with which he is not familiar, too often finds his judgment imperfect, and pays with his treasure for his inexperience. Wise, indeed is he who investeth his treasures under the advice of men skilled In the ways of gold."
profitable. Too often these are fraught with danger of loss, and if properly analyzed by wise men, show small possibility of profit. Therefore, the inexperienced owner of gold who trusts to his own judgment and invests it in business or purposes with which he is not familiar, too often finds his judgment imperfect, and pays with his treasure for his inexperience. Wise, indeed is he who investeth his treasures under the advice of men skilled In the ways of gold."
The Fifth Law of Gold
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.
"Fanciful propositions that thrill like adventure tales always come to the new owner of gold.
These appear to endow his treasure with magic powers that will enable it to make impossible earnings. Yet heed ye the wise men for verily they know the risks that lurk behind every plan to make great wealth suddenly."
These appear to endow his treasure with magic powers that will enable it to make impossible earnings. Yet heed ye the wise men for verily they know the risks that lurk behind every plan to make great wealth suddenly."
There are quite a series of parables. Other morals crop up:
MEN OF ACTION ARE FAVORED BY THE GODDESS OF GOOD LUCK
BETTER A LITTLE CAUTION THAN A GREAT REGRET
WE CANNOT AFFORD TO BE WITHOUT ADEQUATE PROTECTION
WHERE THE DETERMINATION IS, THE WAY CAN BE FOUND
BETTER A LITTLE CAUTION THAN A GREAT REGRET
WE CANNOT AFFORD TO BE WITHOUT ADEQUATE PROTECTION
WHERE THE DETERMINATION IS, THE WAY CAN BE FOUND
'Thou can't get ahead by shirking,' Megiddo protested. 'If thou plow a hectare, that's a good day's work and any master knows it. But when thou plow only a half, that's shirking. I don't shirk. I like to work and I like to do good work, for work is the best friend I've ever known. It has brought me all the good things I've had.'
This book was originally published in the high-flying days before the Great Depression. It is worth reading at least once and won't take too long. If you know all this stuff already it will re-enforce it. If you don't know this then this sort of information can save your life in hard times and make it easier in good times. That's as strong an endorsement as I've ever given a book. A free book. That I linked to. Drink up!
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