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.

Cinema Paradiso (Paradise Cinema in English) – 4 Stars (Excellent)

In my search for films that are not well known but tell a great story with an excellent presentation, I discovered “Cinema Paradiso” by Italian Director Giuseppe Tornatore.

Tornatore intended the film to be an obituary for traditional movie theaters (like Paradise Cinema) and the movie industry in general, but after the film’s critical acclaim and box-office success, he changed his mind and apparently never publicly mentioned the demise of films again.

Many critics credit Cinema Paradiso with reviving Italy’s movie industry, which would later produce “Mediterraneo” and “Life is Beautiful”. Tornatore deserves even more credit than his directing effort; he also wrote the story and screenplay with some collaboration from Vanna Paoli.

Giuseppe Tornatore joins a very select group of writer/directors who have been able to create great films in a dual role. Most writer/directors fail miserably in their effort. I would elevate Tornatore to the same level as Tim McCanlies in “Secondhand Lions” and Kirk Jones in “Waking Ned Devine”, both excellent pictures. It takes a lot more than gumption to create an excellent film, it also takes enormous talent, heart, sensitivity and maturity.

So just how successful was Cinema Paradiso? Among its 19 wins and 12 nominations for excellence was the Oscar for Best Foreign Language Film at the Academy Awards, Best Foreign Language Film at the Golden Globes, and Grand Prize of the Jury at the Cannes Film Festival.

Cinema Paradiso will capture your heart when you see 6-year-old Salvatore “Toto” Di Vita (played by Salvatore Cascio) become captivated by the local cinema in his small, native Sicilian Village. He misses his father, who becomes a World War II victim, and through guile and a high interest level, convinces the cinema projectionist Alfredo (Philippe Noiret) to mentor him.

There are three “Totos” in the film—the younger (Salvatore Cascio), the teenager (Marco Leonardi) and the adult (Jacques Perrin). Perrin is a real-life film producer. Cascio steals every scene he is in with his incredible facial expressions, inquisitive mind and indomitable determination to learn how to be a projectionist.

Along the way, he gets into a lot of trouble. He loses his mother’s trust by spending money he is given to buy bread for the family on an admission fee to see a film at the theater. He cons Alfredo the projectionist into giving him some film that causes a fire in his home and threatens his sister’s life. He causes Alfredo to break his promise to Toto’s mother that he will no longer let Toto into the projectionist’s booth.

Ultimately, the flammable film also causes a fire and destroys the Cinema Paradiso and, in a harrowing act, Toto saves Alfredo’s life but Alfredo loses his sight in the disaster. After the Paradiso is rebuilt as the Nuovo Cinema Paradiso (New Paradise Cinema), Toto, who has learned to be a projectionist, is hired as a child to do so because he is the only one in the village who knows how.

The bond between Alfredo as a surrogate father to Toto will only grow deeper when Toto enters his teenage years. He will seek out Alfredo for advice on life when he falls in love with the beautiful Elena (Agnese Nano), who comes from a rich family and enters into a forbidden relationship with Toto.

Alfredo will encourage Toto to leave his village for Rome and never return if he is serious about a career in the movie industry. Toto will eventually grow up to become a famous movie producer in Rome.

Cinema Paradiso starts when Toto learns that his beloved Alfredo has died. Toto has not been back to his village and to visit his mother and sister in 30 years. The question is: Will he return for the funeral? After reliving his life in flashbacks during a sleepless night, he boards a plane home to find himself again. The total story is too good to reveal much more here.

Cinema Paradiso is all about relationships. The relationship of a mother to her son, of a surrogate father to a son, of a boy to a girl, of a young romance, of a village’s citizens to its theater, and of intergenerational gatherings among the villagers.

The release of Cinema Paradiso in 1988 proves the adage that if success was easy every film would achieve critical acclaim and would be a box-office smash. The original version released in Italy was 155 minutes (2 hours, 35 minutes) and had a poor response. After shortening the film to 123 minutes (2 hours, 3 minutes), it became an instant success.

I saw the 123-minute version that was released in the United States and was disappointed that there was no indication of what ultimately happened in Toto’s relationship with Elena. I have since learned that Director Giuseppe Tornatore released a 173-minute version (2 hours, 53 minutes) in 2002 that contains exactly what I wanted to see. Find and watch the longer version if you can, it just adds to an already excellent film.

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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: I made my first investment at age 11. I was wasting my life up until then.
(Ed’s Note: The first lesson of investing is patience. Start early and sit on your investment until it has time to hatch, it may take 20 or 30 years to hatch, but if you are in the right investment you will do very well. Do not keep moving your money into and out of different investments—all that does is make your broker rich at your expense.)

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

“A Man for All Seasons” Demonstrates What Integrity Should Be in the Middle Ages and Now

 

A Man for All Seasons – 4 Stars (Excellent)

“A Man for All Seasons” poses the question: What would a man sacrifice for his principles?

When King Henry VIII (Robert Shaw) seeks approval to divorce his aging wife Catherine of Aragon who could not bear him a son, and marry his mistress Anne Boleyn,
the Pope and the Roman Catholic Church stand
in his way.

Henry VIII’s new Chancellor of England and Cardinal–
Sir Thomas More (Paul Scofield)—stands in his way as well. Henry VIII wants Sir Thomas More’s blessing in his action but does not
get it as Sir Thomas More, a good Catholic and Cardinal, will not go
along with such heresy.

More resigns as chancellor, seeking to live out his life as a private citizen, but Henry VIII will settle for nothing less than More’s public approval of his headstrong course. Sir Thomas refuses to either endorse or denounce the King’s action, and remains a man of principle.

Great effort is made to convince More to change his stance on Henry VIII’s action. One of More’s rivals, Thomas Cromwell (Leo McKern); another religious, Cardinal Wolsey (Orson Welles); and The Duke of Norfolk (Nigel Davenport)
all take their turns at More.

One example is when More testifies before an inquiry committee and Norfolk attempts to persuade him to sign an oath of allegiance:

Norfolk: “Look, I’m not a scholar, and frankly I don’t know whether the marriage was lawful or not—but Thomas, look at these names! You know these men! Can’t you do as I did and come along with us for fellowship?”

More: “And when we stand before God, and you are sent to Heaven for doing according to your conscience, and I am sent to hell for not doing according to mine, will you come along with me—for fellowship?”

There are several lines by More that merit mention but there is not enough space to do so. Here is one of the best: “I think that when statesmen forsake their own private conscience for the sake of their public duties, they lead their country by
a short route to chaos.”

Sir Thomas More was a very smart and savvy—as well as principled—man.

Henry VIII gets every person of any consequence in England to sign his oath (the Act of Supremacy), endorsing his action, except Sir Thomas who will not sign, and remains silent as to the reason why he will not sign.

Cromwell is an English statesman and the chief minister to King Henry VIII. It is Cromwell who presides over King Henry’s divorce from Catherine of Aragon in 1533 and Henry’s subsequent break with the Roman Catholic Church.

When More proves himself to be loyal to King Henry VIII by not speaking out against him and also shows himself to be a loyal subject by not inciting rebellion, Cromwell appears to prosecute Sir Thomas out of personal spite.

In the end, Sir Thomas is the only person in England who will die for his principles, and commit himself to God for judgment. He is betrayed by an ambitious, lower level appointed attorney general, Richard (John Hurt), whose outright lie condemns Sir Thomas to be beheaded.

Sir Thomas More loses his head (no pun intended) but most importantly, not his soul. Sir Thomas is later canonized as Saint Thomas More by the Roman Catholic Church.

Henry VIII subsequently dies of syphilis, and the evil Thomas Cromwell who orchestrates Sir Thomas More’s tragic demise is himself judged a traitor to England 5 years later and is also beheaded. And what was the FINAL fate of More’s adversaries — Thomas Cromwell, Cardinal Wolsey and The Duke of Norfolk? Only God knows.

The riff subsequently leads to England’s split from the Roman Catholic Church and the creation of the Anglican Church, the Church of England.

A Man for All Seasons does not deviate from the truth of Sir Thomas More’s stance, and as such provides a role model for acting with right thinking and right motives, even at the cost of one’s life.

What makes A Man for All Seasons even more impressive is that the plot for the movie is based on the true story of Sir Thomas More. Sir Thomas More was a scholar and statesman who became the leading humanist of the Renaissance Era.

A Man for All Seasons is
a story about everything that is right in England and life (Sir Thomas More’s integrity to his principles) and everything that is wrong in England and life (greed, avarice, lust, lying, cheating, stealing, the corruption of power, and the corruption of religious leaders).

A Man for All Seasons was writer Robert Bolt’s greatest success, first as a play and then as the screenplay for its 1966 movie release following a successful Broadway run. Bolt’s 16th Century period piece has exacting details of the era.

A Man for All Seasons would win 6 Oscars at the 1967 Academy Awards: Best Picture (Fred Zinnemann), Best Director (Fred Zinnemann), Best Writing (Robert Bolt), Best Actor (Paul Scofield), Best Cinematography (Ted Moore) and Best Costume Design (Elizabeth Haffenden and Joan Bridge).

The film also received Oscar nominations for Best Supporting Actor (Robert Shaw) and Best Supporting Actress (Wendy Hiller as Sir Thomas More’s wife Alice).

In addition the movie garnered another 27 wins and 5 nominations, including Golden Globe wins for Best Picture, Best Director, Best Screenplay and Best Actor and a nomination for Best Supporting Actor.

Interestingly, Charlton Heston lobbied heavily for the role of Sir Thomas More, but was not seriously considered. Richard Burton was offered the part and turned it down.

The producers originally wanted Laurence Olivier as Thomas More and Alec Guinness as Wosley, but Director Fred Zinnemann insisted on Paul Scofield and Orson Welles in the roles. The rest is history. Zinnemann obviously knew how to direct a great film and create a huge box office success.