Hello Family, it's Willy here. I hope you are doing well? Today I have come with something interesting, something so basic yet powerful. It's the seven cures for a lean purse from my all-time favorite book "The Richest Man In Babylon" by George S. Clason. I said in my previous post that I was going to talk about this, so here it is guys, I really hope you'd enjoy. These seven principles have been my financial guide since my teenage days, and I have come to understand that if followed diligently, they can pave the path to financial prosperity for anyone, regardless of your background. As old as it is, its wisdom still lives on and can be effective in any era. Join me, let's explore each cure and understand its modern-day application.
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Without much ado, let's get down to the business of the day:
Cure 1 :Start Thy Purse to Fattening:
Arkad in the book taught his student the first important step to wealth: savings. He used a simple analogy to explain his point, the egg basket analogy. Arkad asked his students a question, "if you put 10 eggs in a basket every day and only take 9 out, what will eventually happen?" The answer he got from his students was that the basket will eventually overflow with eggs. Indeed, he made me understand that all it took to have money was not to spend it all. Just leave a portion of your income untouched, and eventually, you'll begin to see your bank account grow.
What I understood by Arkads illustration was that start thy purse to fattening is a call to action, urging individuals to prioritize savings before spending. As we say today "Pay Yourself First". This is the very foundation of financial stability. Arkad also added by saying that we often pay the food vendor, the cloth maker, the saddle maker, and others, but forget to pay ourselves. He implied that we have all these expenses that consume our income, and in the end, the money that was supposed to be saved or invested ends up in the pockets of others. Indeed, don't get me wrong, most if these are necessary expenses that we can't do without, but some can be controlled through delay gratification for the sake of our future. This brings me to the next cure.
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Cure 2 :Control thy expenditures:
On the second day of meeting his students, Arkad emphasized the significance of managing expenses wisely. He encouraged each of his students to create a budget for their respective incomes. His example left a profound impact on me. Despite the diversity of their trades – some were scribes, others were butchers, and so on – Arkad made them realize that, regardless of their varying income levels and financial obligations, they all too often found themselves with no money left. This, he illustrated, was an example of Parkinson's Law, which states that "Expenses will always rise to meet income."
This revelation significantly altered my understanding of money. I began to recognize that individuals who complained about not having enough money, even after receiving a pay raise, continued to experience financial difficulties. The key takeaway here is the necessity of controlling your expenses; otherwise, they will control you. Since my teenage years, I have adhered to a budget to manage my income, inspired by this advice. I can confidently say that I rarely find myself in situations where my finances are depleted. I can't even recall the last time it happened. If you frequently find yourself with nothing to show for your income by the end of the month, this principle is incredibly important, and it can make a substantial difference in your financial life.
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Cure 3 :Make Thy Gold Multiply:
Well, after applying the first two cures, you'll inevitably start to notice an increase in your finances. This has been attested to by Arkad's students, and I can personally vouch for it. I distinctly recall that when I diligently followed this advice around the age of 18, I realized I had more money than all my siblings. It may not have been much compared to what I have today, but it felt extraordinary at that time and meant a lot to me. I felt like a millionaire. But, let's shift the focus away from my personal experience and continue our journey.
On the third day, Arkad delivered a crucial message: "A bag filled with coins only satisfies the miserly soul, but it does not profit anything." This was another profound lesson for me. I was delighted with the modest savings I had, but I soon learned that it was as valuable as any other piece of paper until it's wisely invested in ventures that can generate profit. Arkad taught his students that the only way to truly attain wealth is by making your money multiply through wise and profitable investments. Hence, the third cure, "Make thy gold multiply," urges us to let our money work for us through smart investments.
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Cure 4 :Guard Thy Treasures from Loss
Arkad's in the 4th cure gave a message to serve as a reminder for us to be cautious about where we get our investment advice and what we invest in. Investing can either make you money or loss you money. He told a story about how he lost money by listening to a brick maker's advice to invest in precious gems. He then offered a clear piece of advice: "If you want advice on bricks, ask a brick maker, and if you're interested in the stars, consult an astrologer." In other words, he meant that you should seek advice from experts in the particular field you're dealing with. I think this point is clear enough and needs no further explanation.
I'm glad we all come to Inleo to share our financial knowledge and learn from each other. However, I want to emphasize that, as per Arkad's wisdom, it's very important to verify the credibility of those offering advice before you implement it in your life. I'm not a financial expert, but the financial wisdom I'm sharing is not my own; it's a reflection of what I've learned from my love and study of "The Richest Man in Babylon." This book has had many people testify to its principles working and positively impacting their lives, including myself, which is why I'm sharing it, and I know it can be of great help.
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Cure 5 :Make of Thy Dwelling a Profitable Investment
Arkad, in this principle, emphasized the advantages of buying or building your own home for both your financial well-being and peace of mind. He discussed the frustration of living with your family in a rented apartment owned by someone else. Regardless of how good your landlord may be, there is a distinct sense of freedom that comes with owning your own home, ensuring financial security and peace of mind for you and your family.
I must emphasize that in today's world, financial decisions regarding homeownership depend on your income and the housing costs in your area. It can be wise to rent for a while and invest the surplus you save to generate more interest, rather than buying a house right at the beginning of your financial journey. However, please note that this is just my opinion and not financial advice. I will write another article discussing this strategy in more detail. The key takeaway from this cure is the peace of mind that homeownership can provide for you and your immediate family. Also, just as you would pay rent to a landlord if you were renting, you could lease a part of your home if it's a duplex or has extra space to accommodate others and charge rent.
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Cure 6 :Ensure a Future Income
Arkad, in this cure, emphasizes the importance of planning for a future income, particularly for retirement. He offered a suggestion to his students, which at that time couldn't be implemented but is readily available in our modern world. He discussed a system where people could set aside a portion of their income in a secure place, similar to a bank today, which would provide passive returns in their old age. He also mentioned another system where, in the event of one's passing, a saved sum of money could be passed on to their family in their absence. Arkad emphasized on the inevitability of death and the importance of preparing for it.
I strongly believe that this is one of the mistakes many of us make in our youth. When we start earning money through our work, we tend to forget that it won't always be that way. If it's a job, we won't always have the strength to keep going, and with a business, we can't predict the future. It's crucial to prepare for the "great beyond," by which I mean the future. Instead of solely spending what we earn through hard work, we should prepare to make money work for us.
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Cure 7 :Increase Thy Ability to Earn
In the final cure for a lean purse, Arkad emphasized the importance of continuous learning and self-improvement to boost your earning potential. I also recall another valuable financial book that aided me on my journey, "Learn to Earn" by John Rothchild and Peter Lynch. It showed the idea that the more you learn, the more you can earn. It appears to me that your financial knowledge is directly related to your earnings.
Fortunately for us in the digital age, online courses, certifications, and skill development are more accessible than ever. Consider the wealth of financial wisdom you can obtain from Inleo.io and other similar platforms. Financial education has never been this accessible. Always remember that investing in education and skill development can undoubtedly lead to career advancement and increased income if you apply the knowledge you acquire.
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What I live my Fellow Readers with:
I'm glad you've joined me in reading this article to its conclusion. I'd like to conclude by emphasizing that "The Richest Man in Babylon" offers a timeless guide to financial success. Each of the seven cures is just as applicable today as it was in ancient Babylon. By incorporating these principles into our modern lives, we can set ourselves on a path toward financial prosperity, ultimately creating a future that is both financially secure and fulfilling. So, let's take heed of these ancient words and work towards becoming the best versions of ourselves, financially speaking.
Written with Love to the hive Blockchain,
Yours Truly - Willy.