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

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

I am an average Joe in many ways, but I draw a very quick and distinct line in the sand when it comes to issues of integrity.

When I see someone lying, cheating and stealing, then acting like they are helping me when in fact they are relieving me of my money while lining their pockets, I take umbrage.

There are no excuses for wrongdoing. I could care less whether your friends, corporate fat cats or even your grandmother is doing it. To justify wrongdoing is saying that everyone else is killing people they do not like so it must be OK for me to kill people too.

I have zero interest in becoming a millionaire at the expense of others. I do not want to be sitting in my mansion counting all of my gold coins alone because I am such a despicable person that no one wants to be around me.

I have spent a good portion of my life studying self-improvement so I can become a better person than I already am. It is as Alexander Pope has said, “Know then thyself, presume not God to scan, The proper study of mankind is man.” If there is one person I want to be honest with, it is myself.

When I train at the YMCA on the treadmill I take with me my binder filled with personal quotes that are important to me and my growth.

Many people experience professional growth by earning degrees, attending seminars and training, and reading professional journals. I have had some professional growth, but I am more interested in personal growth, the kind of growth that challenges my thought process and belief system to encourage change for the better.

Here are some of my personal favorite quotes that help me to accommodate change.
Perhaps they may be of interest to you as well:

On Advice:

Seek advice from those who are competent through
their own experience and success to give it.
George Clason

On Belief:

At any given place on any given day at any given time,
something magical can happen.
It is called “belief”.

On Change:

If you lack the will for change, there is no one
who can show you the way.

When you blame others, you give up your power to change.

On Character:

Just as we can learn from our mistakes,
we can gain character from our disappointments.
Robert Kiyosaki

On Dreaming:

A dream is a gift you give yourself.

On Failing:

Many of life’s failures are people who did not realize how close
they were to success when they gave up.
Tomas Edison

On Fatigue:

Fear and fatigue block the mind.
Confront both, and courage and confidence will flow into you.

On Imagination:

A mind once stretched by a new idea moves beyond its
old constraints, never returning to its former, limited dimensions.
It is called “imagination”.

On Integrity:

Nothing is at last sacred but the integrity of your own mind.

On Kindness:

You cannot do a kindness too soon,
for you never know how soon it will be too late.
Ralph Waldo Emerson

On Luck:

Luck has a peculiar habit of favoring
those who do not depend on it.
George Clason

Good luck waits to come to those who accept opportunity.
George Clason

On Money:

Money is like a sixth sense without which we
cannot make a complete use of the other five.
W. Somerset Maugham

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

A part of all I earn is mine to keep.
George Clason

Earning money has a way of increasing financial intelligence quickly.
Robert Kiyosaki

Self-discipline is the No. 1 delineating factor between
the rich, the middle class and the poor.
Robert Kiyosaki

On Preparedness:

It was apparent that no one could do for the scribe
what the scribe had done for himself.
George Clason

Each man has to work out his own understanding of what
needs to be done, and then prepare himself to take advantage
of the opportunity to succeed in a big way.
George Clason

On Running:

When aerobic running becomes a daily habit,
Strength and confidence follow.
Arthur Lydiard

On Schooling:

I never let schooling interfere with my education.
Mark Twain

On Self-Control:

Yoga taught me “impulse control”, the ability
to feel an urge and delay acting on it.

On Self-Image:

What you think of me is none of my business.
What is most important is what I think of myself.
Robert Kiyosaki

Always remember that no matter what anyone is saying to you
from the outside, the most important conversation is the one
you are having with yourself on the inside.
Robert Kiyosaki

On Soul:

When the mind is controlled and still, what remains is the soul.

On Stability:

When stability becomes a habit, maturity and clarity follow.

On Success:

Success is not the key to happiness.
Happiness is the key to success.
Albert Schweitzer

On Thinking:

The hardest thing in the world to do is to think,
and that is why people do so little of it.
Henry Ford

Your mind, more than your actions, determines your net worth.
Robert Kiyosaki

Too often we enjoy the comfort of opinion
without the discomfort of thought.
John F. Kennedy

Keep your thoughts positive, because thoughts become your words.
Keep your words positive, because words become your behavior.
Keep your behavior positive, because behavior becomes your habits.
Keep your habits positive, because habits become your values.
Keep your values positive, because values become your destiny.
Mahatma Gahdhi
(with editing by Ed Bagley)
(Postscript: remember t-w-b-h-v-d to remember

My own thoughts and feelings are the cause of all of my problems,
not the world or the people in it.

I have struggled by using my own negative thoughts and feelings
to negatively influence my productive thoughts and actions.

I let go of all negative thoughts and feelings by releasing them
from my subconscious mind and into oblivion.
I embrace all positive thoughts and feelings.

My conscious mind and subconscious mind are now
clear and positive. I am happy and free.
Ed Bagley

On Timing:

This time, like all times, is a very good one,
when we know what to do with it.
Ralph Waldo Emerson

On Training:

My most frequent admonition to athletes
and coaches is: train, do not strain.
Arthur Lydiard

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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.)