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

It has now been 37 years since the untimely, tragic death of America’s greatest running legend and its greatest middle distance runner, Steve Prefontaine, and his legacy continues to grow as the void he filled remains open. It is rare but true to say that his legacy may never be matched again.

“Pre”—as he would become known to the world beyond Coos Bay, Oregon—was not only unbeatable on American soil but he captured the hearts of runners and spectators. Fans still swear upon pain of death that many times when Pre would step onto the Hayward Field track at the University of Oregon, the sun would burst through the overcast skies, as if announcing that something great was about to happen.

And happen it did because Steve Prefontaine was there to not just win a competitive race, he was there to entertain his faithful, who could expect a superlative effort as well as a victory.

Pre never thought of himself as the fastest runner in the race, but there is no record of a runner who ever faced him that doubted that he was the toughest, most courageous runner ever. That list included some world-record holders and his most intense rivals.

Like a lot of 5-foot, 100-pound athletes who were 8th grade benchwarmers in the more popular sports like football, Pre turned out for the cross-country team as a freshman and discovered his place in the world.

By the time to graduated from Marshfield High School, he had won 2 state cross-country titles, won state track titles in the mile and 2 mile twice, run a 4:06.0 mile in the Golden West Invitational, and set the national high school record in the 2 mile with a sensational 8:41.5 time.

As an 18 year old he qualified to represent the United States on an international tour and finished 3rd in the 5000-meter run in Europe. His 13:52.8 time was faster than any ever run by the legend of the previous generation, the great Emil Zatopek of Czechoslovakia. He held his own against the world’s best, and had yet to begin his collegiate career at the University of Oregon.

In his first 3-mile race against Washington State in a dual meet at Eugene, Pre won in 13:12.8, the 7th-fastest time ever by an American and the fastest time by a U. S. runner in two years. After 21 straight collegiate meets without a loss, he was the hot-shot prodigy, on the cover of Sports Illustrated as a freshman. No one could have known that he was just getting started.

“A strange camaraderie grew up at the time among those of us who lost continually to Pre,” said Don Kardong of Stanford. “We were united in our belief that no one should have the success coupled with pride that Pre had. We really wanted, I think, to see the big tree fall.” But for Pre, his competitors seemed to not even be on his radar screen.

After his freshman year, Pre never lost a cross-country race, winning 3 individual NCAA championship titles. He would win 4 NCAA 3-mile titles in track, becoming the first runner to ever win 4 consecutive NCAA titles in the same event.

After his junior year at Oregon, he qualified for the U. S. Olympic team in the 5,000 meters and would finish 4th in 13:28.3 as Lasse Viren of Finland won in 13:26.4. The field literally plodded through the first two miles and sprinted the last mile. Pre would take the lead at one point but could not hold it in the end.

In preparing for the Olympic 5,000 meter, Pre had run four 1320s and three 1 milers with decreasing times. His 1320 times were 3:12, 3:09, 3:06 and 3:00, then he came back with the cut-down miles. For sharpening, he ran a solo mile under 4:00; he just walked to the line in practice, got set, then clicked off a 3:59 mile with no competition. He was ready, but he was not as experienced as the world-class runners he was facing.

Because of his relentless front-running, Pre was non-stop, and many of his opponents set personal records in losing against him.

Think about his personal best times: a 1,500 in 3:38.1, a 3,000 in 7:42.6, a 5,000 in 13:21.9, a 10,000 in 27:43.6, a mile in 3:54.6, a 2 mile in 8:18.4, a 3 mile in 12:51.4, and a 6 mile in 26:51.8, all accomplished by 1975. At his best, Pre once held every American record in the middle distance events from 2,000 meters to 10,000 meters.

Alberto Salazar, the former American-record holder in the 5,000 and 10,000 meters and marathon, had this to say about Pre: “He would not take second effort—it was not acceptable . . . I think it comes down to pride in the end. Not proud, necessarily, that you are better than everyone else, but that you are tougher than anybody else. That if you lose, you are going to make whomever you are running against pay. And that is what Pre did.”

John Gillespie, a coach and fan, said “He had charisma. That word—there is something about somebody when you tell people you are going to do something, and then you go out and do it. I know of no single person who could draw people like he did.”

Wendy Ray, the Hayward Field announcer for all of Pre’s races there, said “He just had whatever that is—I don’ t know, actors have it. Singers have it. Some people have it, some people don’t. Most people don’t. He had a lot of it.”

Tom Jordan, a writer for Track &Field News in the early 1970s, said “Pre would fix you with a steady gaze and give the impression that you were the most important person in his life at that instant, and that the things he was telling you were known by few others.

“It was an enormously flattering and appealing trait,” said Jordan, “and contributed greatly to what came to be called his charisma.”

Pre ran every day of his athletic life. He was up at 6 a.m. and out the door, running again in the afternoon at workouts. Perhaps even more incredible than the records he set and championships he won was the fact that he never missed a single day of practice or a single meet during his 4-year career at the University of Oregon. He was a force that no one wanted to reckon with, or run against.

On May 30, 1975, 24-year-old Steve Prefontaine was killed in a tragic auto accident. A memorial marks the spot of his death in Eugene, Oregon, and attracts runners and admirers to Pre’s Rock, the roadside boulder where he died. Like a flame that refuses to be extinguished, Pre lives on.

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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.)