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 © 2009 Ed Bagley

It’s a funny thing about the lessons you learn in life. Not all of them are learned on the way to school. Some are learned on the way home from school.

Take Mikey (pronounced Mike-ee), one of my classmates. I wouldn’t know what he looks like today, where he’s at or what he’s doing. No Matter. I knew Mikey like the flat of my stomach in my elementary school days.

Mikey used to get his kicks smacking me in the gut on the way home from school. He thought it was fun to see me double over in pain, fall in a mud puddle and slink home with defeated tears.

I was always taught not to punch people out when they were punching you.

Like the Good Book says, turn the other cheek and pray for survival. Hope the creep will leave before he beats you senseless, or takes your life before you can try out for the Little League baseball team.

Fortunately, I came home once too often in this condition. My Grandpa Baker, God rest his soul, had better sense. He sat me down one day and asked what was going on.

I told him, because you can tell a Grandpa a lot of things you just wouldn’t tell anyone else. I was raised by my maternal grandparents the first 5 years of my life. After living more than 6 decades, I can say with confidence and gratitude that everything good in life I learned from my grandparents before my mother re-married. Grandpa had a sure-fire cure for Mikey.

He explained that as long as Mikey was allowed to slug me in the gut, he would think this was proper behavior and part of his daily schedule. Grandpa then gave me some advice and the next day I set his plan in motion:

Mikey lived at the other end of the block, so I went to Mikey’s house to see if he was home. He was, so I invited him out to play. Trust me when I say this was a first, I was never looking for trouble; trouble had found me too many times. I could already see his gleam as Mikey bounded down the steps, his eyes lit up like a Fourth of July firecracker.

When Mikey was square in front of me—I wound up and, without warning, slugged him just as hard as I could in the stomach. Mikey was suddenly speechless as well as not standing. Wherever I hit him, it was lethal.

In a few moments, he was screaming like there was no tomorrow. I turned around and casually walked home as his mother screamed at me in the distance.

A strange thing happened after that.

Mikey NEVER touched me again. Matter of fact, we sort of became friends.

Both Mikey and I grew up a little that day. I learned how to handle Mikey, and Mikey learned a new respect for me.

Prior to delivering my position on Mikey’s behavior to Mikey, I was as soft in the head as I was in the stomach.

The moral of this story is that some people don’t understand anything but brute force.

This is a fact of life that a lot of people have never learned. As a Vietnam Veteran, I can tell you that if someone is pointing a weapon at you, you had better fire your weapon first, and fire it accurately.

Even today—some 55 years after I smacked Mikey—I feel some humanitarians and bleeding heart, far-left liberal sympathizers will never learn some very basic lessons about people and what makes them tick.

Take a casual look at the American system of criminal justice. Look at the victims, look at the suspects, look at the lawyers, look at the courts, look at the convicted criminals, look at the prisons, and look at the rehabilitation programs.

I’m just an average American, but you don’t have to be a law enforcement officer, a lawyer, a justice, a prison warden or a victim to figure out that our present system makes about as much sense as a soft-boiled egg.

We say we respect life, but our practice is to ignore the victims of a crime and spend all of our time protecting the rights of the criminals, and finding ways to try rehabilitating the criminals.

It never occurs to us that some of the criminals are not worth the effort. Helping the families of victims would produce more positive results.

An added note: I am now past 70, and it is Tuesday, August 8, 2014. Today, all I hear about is how bad bullying is. Here is a word of advice from someone who knows: There can be no bullying without a victim.

When you choose NOT to be a victim (refuse to be influenced by what others say, think and do), the bully will have to find someone else to affect adversely. This may not totally stop his or her bullying, but at least they will stop bullying you, because it only works for them if you choose to be a victim.

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.)