Wow! It has been a few eventful weeks since my last post. My primary job has been taking a toil on my energy. With encouragement from my mentor, I'd decided to continue my blog. So after more than 12 hours of rest, feeling recharged, I'd re-read a book that crossed my path in 2006, "The richest man in Babylon". This is a book written in the 1920s. It has been a year since I'd read it and a lot has changed to my financial situation. What remain constantly true and effective are the principles introduced by the book. I'd attempted to map it as follows:
The author assumed that that the reader is motivated by desire and by choice, choose to change his financial situtaion with the 7 Cures and 5 Laws of Gold. After understanding the cures and the laws, draft a plan and act on it.
The 7 Cures (to a lean purse)
1. Start thy purse to fattening. "A part of all you earn is yours to keep. For each ten coins i put in, to spend by nie." (PYF)
2. Control thy expenditure. "Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings." (Budget expenses)
3. Make thy gold multiply. "To put each coin to labouring 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." (Invest)
4. Guard thy treasures from loss. "Investing only where thy principal is safe, where it may be reclaimed if desireable, and where thou will not fail to collect a fair rental. Consult with wise man. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments." (Secure)
5. Make of thy dwelling a profitable investment. "Own thy own home." (Own, avoid installments for purchases)
6. Insure a future income. "Provide in advance for the needs of thy growing age and the protection of thy family." (Insure, Emergency fund)
7. Increase thy ability to earn. "Cultivate thy powers, to study and become wiser, to become more skillful, to act as to respect thyself." (Knowledge)
The author moved on to discuss the causes for being lucky. A few quotes seem to sum up the ideas.
"Good luck waits to come to that man who accepts opportunity."
"To attract good luck to oneself, it is necessary to take advantage of opportunities."
"Good luck can be enticed by accepting opportunity."
Men of Action are favoured by the Goddess of Good Luck. (Act, Luck)
The 5 Laws of Gold
1. Gold cometh glady 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. (PYF)
2. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the the field. (Invest)
3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling (Secure)
4. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familar or which are not approved by those skilled in its keep. (Circle of Competence)
5. 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. (Knowledge)
The author moved on to discuss the idea of giving out loans to your family members, relatives or friends. The following is a wisdom to share,
"If you desire to help thy friend, do so in a way that will not bring thy friend's burdens upon thyself. Better a little caution than a great regret."
"Preceding accomplishment must be desire. Thy desires must be strong and definite."
"We cannot afford to be without adequate protection."
"Where the desire is, the way can be found."
"When I Stop Learning, I Stop Living"