In an Over-Communicated, Intrusive World, Simple is Better
Ed

Clason’s “The Richest Man in Babylon” Part 2 – The 7 Cures for a Lean Wallet and The 5 Laws of Money

Copyright © 2007 Ed Bagley

Part 1 of this 2 Part series ends the synopsis of George Clason’s book “The Richest Man in Babylon,” but Clason raises an important question: Why should
so few men be able to acquire so much gold?

The answer is because they know how.

One may not condemn a man for succeeding because he knows how. Neither may one with justice take away from a man what he has fairly earned, to give to men of less ability.

And so it was that the good king of Babylon sought out the richest man in Babylon to teach to others in his kingdom the secrets of his success.

This is a synopsis of what the richest man taught to the people
of Babylon:

The Seven Cures for a Lean Wallet

1) Start your wallet to fattening. Save one-tenth of all you earn. Remember that a part
of all I earn is mine to keep. Do this faithfully. Do not let the simplicity of this escape you.

When I ceased to pay out more than nine-tenths of my earnings,
I got along just as well.
I was not shorter than before, and, money came to me more easily than before.

2) Control your expenses. How is it that all do not earn the same yet all have lean wallets? Here is the truth: That which each of us calls our “necessary expenses” will always grow to equal our incomes unless we protest to
the contrary.

Confuse not necessary expenses with desires. We all have more desires than our earnings can gratify. Examine which of the accepted expenses of living can be reduced or eliminated. Let your motto be 100% of appreciated value demanded for every dollar spent.

Budget your expenses so that your actual necessities are met without spending more than nine-tenths of your earnings.

3) Make your money multiply. Protect your growing treasure by putting it to labor and increasing. Money in your wallet earns nothing. Money that we earn from our money is but a start; it is the earnings generating earnings that builds fortunes.

When the richest man in Babylon loaned money to the shield maker to buy bronze, he said this: “Each time I loaned money to the shield maker, I loaned back also the rental he had paid me. Therefore not only did my capital increase, but its earnings likewise increased.”

4) Guard your money from loss. Everyone has an idea of how to make quick money; few, however, have the evidence of making money to justify their idea, scheme or offer of quick riches. The first sound principle of investment is security for your principal.

Before you loan your money to any man assure yourself of his ability to repay your loan, and of his reputation to do so. Make no one a present of your hard-earned treasure.

Consult the wisdom of those experienced in handling money for profit. Such advice is often freely given for
the asking, and may possess more value than the amount you
are about to invest.

5) Make your home a profitable investment. When you can set aside only nine-tenths of what you earn to live, and can use a part of that nine-tenths to improve the investment in your housing, do it; owning your own home is also an investment that grows with your wealth.

Your family deserves a home they can enjoy and call their own. It builds a sense of stability and well-being.

6) Ensure a future income. Build income-producing assets that do not require you to work forever. We will all grow old and die.

You should prepare a suitable income for the days to come when you are no longer younger and cannot work as hard, and to make preparations for your family should you no longer be with them to comfort and support them. Provide in advance for the needs of your growing age, and the protection of your family.

7) Increase your
ability to earn.
Desire precedes accomplishment, and the desire must be strong and definite. When you have backed your desire for saving $1,000 with the strength and purpose to secure it, you can then save $2,000.

Desires must be simple and definite. Desires defeat their own purpose when they are too many, too confusing, or too difficult to accomplish. Cultivate your own powers to study and become wiser, more skillful, and more productive.

Here is more sage advice from Clason’s masterpiece on financial matters:

The 5 Laws of Money

If you had to choose, would you choose tons of money or wisdom? Most men would take the money, ignore the wisdom, and waste the money. Here is the wisdom:

1) Money comes gladly and in increasing quantities to any man who will put aside not less than one-tenth of his earnings to create an estate for his future and the future of his family.

2) Money labors diligently and contently for the wise owner who finds for it profitable employment, multiplying unto itself in infinity if kept working diligently. Money multiplies itself in surprising fashion.

3) Money clings to
the protection of the cautious owner who invests it with the advice of men wise
in its handling.

4) Money slips away from the man who invests it in businesses or purposes that he is not familiar with, or which are not approved by those skilled in its keep. The inexperienced handler of money who trusts his own judgment, and puts his money in investments which he is not familiar, always pays with his money for his experience.

5) Money flees the man who would force it to impossible earnings, or who follows the alluring advice of tricksters and schemers, or who
trusts it to his own inexperience and romantic desires in investment.

Here is the hard lesson of the 5 Laws of Money: You cannot measure the value of wisdom in bags of money. Without wisdom, those who have it quickly lose money, but with wisdom, money can be secured by those who have it not.

This ends the condensation.

Copyright 2012 by Ed Bagley

Alexander Pope, best known for popularizing the heroic couplet, came to my attention in an English literature class at Michigan State University in the mid-1960s.

I was more interested in reading Pope at the time than learning about Pope because he clearly knew how to do what I call “turn a word”. That is, to write a string of words that grabs your attention and delivers a thought so profound that it cannot be ignored.

Pope was a master at this art in writing. Perhaps you have read or heard these gems:

A bird in the hand is worth two in the bush.

Fools rush in where angels fear to tread.

To err is human, to forgive, divine.

The ends must justify the means.

More than one author has rewritten these thoughts and claimed them for monetary gain. Each of these thoughts could remind us of a stunning truth: someone said it first.

Some pundits say that England’s William Shakespeare is the most read and most quoted author ever. Many suggest that the Holy Bible is second. It has been said that British author Agatha Christie’s books have only been outsold by Shakespeare and the Bible.

Alexander Pope may not have sold as many books, but he has been cited as the second most frequently quoted writer in the English language, after William Shakespeare.

Pope (1688-1744), the master of the heroic couplet, is generally regarded as the greatest English poet of the early 18th Century. He was widely known for his satirical verse and for his translation of Homer.

For the uninitiated, the heroic couplet is a pair of rhyming iambic pentameters. Iambic is a verse using iambs, and an iamb is a metrical foot consisting of one short (or unstressed) syllable followed by one long (or stressed) syllable. So there you have it, learning once again springs on your computer monitor.

The heading to this article is an example of Pope’s heroic couplet: A little learning is a dangerous thing, Drink deep or taste not the Pierian spring.

Read for a moment, appreciate just how good Pope and his verses were, and understand why he would grab my attention:

On bribery: Judges and senates have been bought for gold; Esteem and love were never to be sold.

On churches: Who builds a church to God, and not to Fame, Will never mark the marble with his Name.

On curiosity: One who is too wise an observer of the business of others, like one who is too curious in observing the labor of bees, will often be stung for his curiosity.

On the Devil: Satan is wiser now than before, and tempts by making rich instead of poor.

On education: ‘Tis education forms the common mind. Just as the twig is bent, the tree’s inclined.

On expectation: Blessed is he who expects nothing for he shall never be disappointed.

On fashion: Be not the first by whom the new are tried, Nor yet the last to lay the old aside.

On gossip: And all who told it added something new, and all who heard it, made enlargements too.

On judgment: ‘Tis with our judgments as our watches, none go just alike, yet each believes his own.

On order: Order is Heaven’s first law; and this confess, Some are and must be greater than the rest.

On pride: What the weak head with strongest bias rules, Is pride, the never-failing vice of fools.

On proverbs: Hope springs eternal in the human breast, Man never is, but always to be blest.

On providence: Destroy all creatures for thy sport or gust, Yet cry, if man’s unhappy, God’s unjust.

On right: Always do right. That will gratify some of the people and astonish the rest.

On self-knowledge: Trust not yourself, but your defects to know, Make use of every friend and every foe.

On self-sacrifice: Many men have been capable of doing a wise thing, more a cunning thing, but very few a generous thing.

Here is the message: Great writing and great writers are timeless for those who seek knowledge and truth. If you care for neither then it does not matter. For example:

If today’s generation is on spring break at the beach, drinking and drugging, and running around half-naked willing to hump each other that is their business and their perfect right.

My suspicion is that their personal life is so bereft of anything meaningful that they must put on a public display to convince themselves they are having a life experience. In their effort to raise shallowness to an art form they occasionally succeed.

Now back to something worth examining, the life of Alexander Pope, who should provide inspiration for not only poets and writers but also for the handicapped.

Pope, born in London, was the son of a linen merchant and his wife. Since they were Roman Catholic, he grew up having to deal with the Church of England, which banned Catholics from teaching upon pain of perpetual imprisonment.

His aunt taught him to read and he was educated at two secret Catholic schools that, while illegal, were tolerated in some areas.

Pope suffered from Pott’s disease, a form of tuberculosis affecting the spine. This stunted his growth and deformed his body, perhaps ending his life at 56. He was only 4-foot-6 and was apparently not very attractive, which may explain why he never married.

Despite his inauspicious start in life, Louis Kronenberger in “Alexander Pope Selected Works” says “In terms of money as well as fame Pope was probably the most successful English poet who ever lived. No other in his own day—few in any day—had so many readers or received such nearly universal acclaim.”

Pope’ s works would not cause him to be forgotten, but the growth of Romanticism in the late 18th century would. Joseph Warton would deny that Pope was ever a “true poet” and dismiss him as merely a “man of wit” and a “man of sense” thus hastening the demise of the “Age of Pope”.

It would take until the 1930s to rediscover Alexander Pope and his works. By posting this article on Internet directories hopefully Alexander Pope and his works will again take their rightful place among the great works in history. With apologies to a great writer:

Then Alexander Pope who was soon forgot,
Might finally become a true juggernaut.

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Sid Miller Wants to Know: What are you voting for?

 

That moment when someone says, “I can’t believe you would vote for Trump”

I simply reply “I’m not voting for Trump.”

I’m voting for the First Amendment and Freedom of Speech.

I’m voting for the Second Amendment and my right to defend my life and my family.

I’m voting for the next Supreme Court Justice(s) to protect the Constitution and the Bill of Rights.

I’m voting for the continued growth of my retirement investments and the stock market.

I’m voting for an end to America’s involvement in foreign conflicts.

I’m voting for the Electoral College & the Republic we live in.

I’m voting for the Police to be respected once again and to ensure Law & Order.

I’m voting for the continued appointment of Federal Judges who respect the Constitution and the Bill of Rights.

I’m voting for our jobs to remain in America and not be outsourced all over again to China, Mexico and other foreign countries.

I’m voting for secure borders and legal immigration.

I’m voting for the Military & the Veterans who fought for this Country to give the American people their freedoms.

I’m voting for the unborn babies that have a right to live.

I’m voting for continued peace progress in the Middle East.

I’m voting to fight against human/child trafficking.

I’m voting for Freedom of Religion.

I’m voting for the American Flag that is disrespected by the “mob.”

I’m voting for the right to speak my opinion & not be censored.

I’m not just voting for one person, I’m voting for the future of my Country.

I’m voting for my children and my grandchildren to ensure their freedoms and their future.

What are you voting for?

About the Source: Sid Miller is the Commissioner of Agriculture in the Great State of Texas.

(Ed’s Note: The current 2020 Presidential Election has been reduced to a choice between our “constitutional republic” form of government and creeping into a “socialist” form of government in America. We should not allow any political party in America to bring advancing socialism—example: The Green New Deal—under the guise of improving our constitutional republic. Every form of socialism as a government in history has failed to advance the welfare of the citizens therein. Smart people know that socialism does not secure our rights as citizens but rather reduces our personal rights to the point where we have none and ultimately end up as a dictatorship.)

Financial Thoughts
on Investing
by Warren Buffett

(Ed’s Note: The following condensation is from The Tao of Warren Buffett, written by Mary Buffett and David Clark and available for sale at Amazon and bookstores nationwide. I am always impressed by what Warren Buffett has to say and am doing this condensation to help promote their book.)

On Investing: Never be afraid to ask too much when selling offer too little when buying.
(Ed’s Note: How much you get from a sale or how much you have to pay when making a purchase determines whether you make or lose money and how rich you ultimately become.)

(Ed’s Note: For more of Warren Buffett’s advice go to the menu bar above and click on Financial Thoughts.)