31 May 2007

The Richest Man in Babylon by George S. Clason

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."

Quotable quotes:

"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."

Good Night!

"When I Stop Learning, I Stop Living"

03 May 2007

Rules of Wealth by Richard Templar

I'd been digesting my read on the book by Richard Templar, "Rules of Wealth", since Jan 2007. He is also the author of "Rules of Work" and "Rules of Life". A pragmatic author offering pragmatic advice. There are 100 rules stated in his book, Rules of Wealth". If I may sum it up into just 5 points for sharing. The 5 points are:

1. Money is a Concept
2. Take Action with a Plan
3. Build a Team
4. Protect It
5. Share It

Human species started off with barter trading; exchanging of goods for goods (applicable to services too). Then it evolved into some form of sea shells... nice looking and precious one I think. Then came precious metals like gold. Now its currency - Paper Money. And many of us are crazy over it - that pieces of paper!

Why is money so precious and how can we make more of it?

Richard started off his book with the phrase, "Money is a concept". And that caught my eyes straight away. I'd then realised that there are abundance of money in this world! Yes, Abundance! You see, if money is just a concept, and concept is an idea, and ideas are in abundance, which means money is also in abundance! So if you have alot of ideas and is able to put 1 or 2 into action, money will flow naturally to you. And the best part is, the more you practise it, the better you become with it. Sound nice. ;-)

Richard quoted an example about a Red Paper Clip, which eventually was traded for a house in just 9 months. Yes, 9 months ONLY! The owner of this idea is pretty wealthy now I guess. All he had used was a red paper clip. You can read more about it @ http://oneredpaperclip.blogspot.com/. So you see, we don't need a lot of money to make more money. So remove this mental rug if you have them in your mind. It takes financial education to make more money and of course a great idea. ;-)

Since then, I have stopped focusing on more money. I focus on the process of making it instead. If my process is correct and appropriate, money will automatically flow into my pocket. Sound even nicer, ya. :-)

Of course, ideas are just ideas unless you put it into action. Yes, be comitted and act on it and see it evolve into being. By PYF, I entered the positive cash flow category. Now I can even buy shares of companies that I like. I love actions. All these falls into my financial plan. A plan keep me focus.

Of course, no man is an island. We need advise along the way. That's why we need a team to achieve more.

Of course, once your assets grows into a huge pile, you need to know how to protect your assets from any ill intent predators. Well, some may not be ill-intent but still must protect it, guard it like a hawk.

Of course, being rich alone is boring. If we can share it (refers to knowledge) and help more of our friends get richer, you can earn something that money cannot even buy for you. Monetary donation is also a form of sharing but watch out for which charity organisation you are donating too. Some are just empty shells and some donno how they spend your donated money away.

Well, the book is as simple as the 5 points i'd summarised but more depth can be found in the book of course. That is if you want to read that 100 rules one by one... ;-)

Some quotes in the book caught my attention. I am sure it will be useful to you too. Just to share a few:

"You have the same rights and opportunities as everyone else to take as much as you want. Anyone can be wealthy."

"The wealthy people knows exactly, to them, what wealth means."

"Most people are too lazy to be wealthy. They may say they want to be, but they don't."

"Money can't buy a kind smile. Money doesn't buy happiness."

"If you can't afford what you want, buy less, but buy quality. Live within your means."

"If people think that you need the money it gives them power over you and that makes you insecure."

"Once you have formulated your plan, your objective, your strategy, your goals and targets and ambitions and destinations, then be committed."

"Changing direction is often hard; Developing new character traits can be painful."

"Good Luck."

So good luck in your journey to financial freedom too!


"When I Stop Learning, I Stop Living."