George S. Clason: The Richest Man in Babylon
How is it that in a city so fine as Babylon, wealthiest in the world at the time, there are haphazard arrays of living arrangements, with some poor and some wealthy? How is it that good, honest men will toil ceaselessly but barely have enough money for food, and at the end of the day be left with as little as the king's slaves carrying water from the Euphrates?
"A man’s wealth is not in the purse he carries. A fat purse quickly empties if there be no golden stream to refill it."
Income is a basic necessity in life, and most importantly an income that will not falter in your absence.
"It costs nothing to ask wise advice from a good friend and Arkad was always that. Never mind though our purses be as empty as the falcon's nest of a year ago"
Make friendships of gold, lifeline relationships on which you can support yourself and seek counsel in times of hardship or stress.
The difference between Bansir (the humble chariot maker) and Arkad (the richest man in Babylon) is very little. They both work equally hard. They were once of equal power and station in life. They studied under the same master. What, then, is the deciding factor?
Arkad first decided to himself that he would claim his share of the good things in life. He would not be satisfied with the lot of a poor man. He resolved to make himself a guest at the banquet of fine things.
He decided that to achieve what he desired, time and study would be required.
He sought mentorship from Algamish, a rich moneylender who had requested his scribing services from the man whom he was employed to.
Algamish taught him that the road to wealth can be viewed after first deciding that a part of all you earn is yours to keep. (Always save a portion of your income that you do not spend on rent, or food, or trifles. Most people pay everyone but themselves)
Advice is the one thing people seem to dispense of indiscriminately; watch that you take only what is worth having. Never take advice from someone who is inexperienced in the matter they are counseling you on, or accept a suggestion from someone that has never tried that course of action themselves.
Arkad learned to save every tenth copper for investments and long term wealth, and eventually he had forged a powerful habit where it was no longer difficult to save that amount.
Arkad learned not to eat the children of his savings. He invested his savings, but then spent the profit on luxuries. Don't eat the children of your savings, for they will never be able to have children of their own that will also work for you. First make an army of golden slaves before you enjoy a rich banquet.
"Would you call a fisherman lucky who for years so studied the habits of the fish that with each changing wind he could cast his nets about them? Opportunity is a haughty goddess who wastes no time with those who are unprepared"
The seven cures for a lean purse:
- Start thy purse to fattening.
- Control thy expenditures. So many people make different amounts of money, but all still have lean purses. When your income rises, your spending habits should not also rise immediately, or you will never have extra income to invest.
- 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. Invest, or exploit the power of compound interest.
- Guard thy treasures from loss. ~ the first sound principle of investment is security for thy principle. We must first secure small amounts and learn to protect them before the Gods entrust us with larger sums.
- Make thy dwelling a profitable investment. Own thy own home, don't continue to pay a landlord and have nothing to show for it after all the years.
- Insure a future income.
- Increase thy ability to earn. Preceding accomplishment must be desire. Thy desire must be strong and definite. A man should not desire to be rich, for general desires are nothing but weak longings. For a man to desire five pieces if gold is a tangible desire which he can press to fulfillment. Increase your skill at your craft and increase your ability to earn.
Meet the Goddess of Good Luck:
She is a goddess of love and dignity whose pleasure it is to aid those who are deserving.
Solid luck cannot be found at the races or at the casino, where luck is infrequent and fleeting, not a source of real wealth.
Luck and opportunity do not wait. She thinks if a man desires to be lucky he will step quick.
The five laws of gold:
- Gold cometh gladly and in increasing quantity to any man who will put by not less than one tenth of his earning to create an estate for his future and for his family.
- Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
- 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 business or purposes with which he is not familiar or which are not approved by those skilled in your counsel.
- Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers who trusts it to his own inexperience and romantic desires in investment.
The gold lender of Babylon:
The safest loans are to those whose possessions are of more value than the one they desire. They own land, jewels, or camels that could be sold to repay the loan. Others are promises that if the loan be not repaid as agreed they will deliver to me a certain property settlement.
In another class are those who have the capacity to earn, people who labor or serve and are paid. They have an income, and if they are honest and suffer no misfortune, I know that they can also repay the gold I loan them.
Humans in the throes of great emotions are not safe risks for the gold lender.
If they borrow to increase their fortunes, they will repay thee promptly. But those who borrow because of their indiscretions, I warn thee to be cautious if thou wouldst ever have thy gold back in thy hand again.
The wise lender wishes not the risk of the undertaking but the guarantee of safe repayment.
Seek to associate thyself with men and enterprises whose success is established that thy treasure may earn liberally under their skillful use and be guarded safely by their wisdom and experience.
"Better a little caution than a great regret"
The Camel trader of Babylon:
The soul of a free man looks at life as a series of problems to be solved and solves them, while the soul of the slave whines "What can I do who am but a slave?"
Where determination is, a way can be found.
The Luckiest man in Babylon:
Treat work like a friend, make thyself like it. Don't mind because it is hard. If thou thinkest about what a good house thou build, then who cares if the beams are heavy and it is far from the well to carry the water for the plaster. Remember, work, well-done, does good to the man who does it. It makes him a better man