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 © 2006 Ed Bagley

After watching so many pay-for-view, big time, hyped fights on the tube and being totally disappointed, watching “Million Dollar Baby” was refreshing because I really got my money’s worth.

Million Dollar Baby is the story of Maggie Fitzgerald (Hillary Swank), a 31-year-old woman who wants to achieve her idea of the American Dream: to become a professional boxer. She finds her way to Frankie Dunn’s (Clint Eastwood) gym only to get the cold shoulder.

Dunn, who barely stays afloat as a boxing trainer in a run-down gym, has never tasted real fame and fortune. Some of his fighters moved on to more aggressive managers and have earned more fame and fortune.

“Scrap Iron” Dupris (Morgan Freeman) acts as a go-between to bring Frankie and Maggie together. Dupris realizes Maggie is dead serious, a devout trainee and stubborn in her quest. The word “no” is not in Maggie’s vocabulary. Frankie eventually agrees to take her on, and she fights her way to a title shot.

Her quest to be a champion takes a heart-wrenching turn when she becomes 100% paralyzed during the title fight. Her opponent throws a cheap-shot punch after the bell ending a round, and Maggie collapses to the mat, hitting her head on the corner stool with neck-shattering force.

It is here that the drama really begins in earnest as Frankie must now deal with his fighter whose career abruptly ends.

The bond between Frankie and Maggie becomes a “family” issue as Maggie cannot deal with her misfortune; she attempts suicide but fails, and then enlists the help of Frankie to end her misery.

How Frankie, a Catholic who attends Mass almost every day, deals with Maggie’s request brings to light the controversial topic of euthanasia.

You must see this film to understand how emotional Frankie’s decision becomes. The issue of euthanasia is dealt with very sensitively and in a balanced way; it is worth the price of admission alone.

This is a good film that has the hardware to prove it. When the 2005 Academy Awards presentation ended, Million Dollar Baby, nominated for 7 Oscars, won 4, including Best Picture, Best Director (Clint Eastwood), Best Actress (Hillary Swank as Maggie Fitzgerald) and Best Supporting Actor (Morgan Freeman as Eddie “Scrap Iron” Dupris).

Eastwood was also nominated for a Best Actor Oscar but did not win in his role as Frankie Dunn.

Paul Haggis who wrote the screenplay was nominated for an Oscar. Million Dollar Baby is based on short stories by F. X. Toole, the pen name of fight manager and “cut man” Jerry Boyd.

Some critics wore out their keyboard pads yipping about what was wrong with this film, but the award givers were far more generous. In addition to the 7 nominations and 4 Oscars, Million Dollar Baby also picked up a ton of awards (another 44 wins and 29 nominations).

I believe a lot of folks are just plain upset with Clint Eastwood for winning another two Oscars with Million Dollar Baby as a Director and Producer (Best Picture). Eastwood was not known as a great actor. His “spaghetti Westerns”—on  my personal favorites list– were not exactly Oscar material), but he has become a Director of note.

Eastwood also won two Oscars for “Unforgiven” (Best Director and Best Picture) as well as being nominated for Best Actor which he did not win. He was also nominated for Best Director and Best Picture for “Mystic River” but did not win.

Some people are just bummed out because he was considered a so-so actor and now has become a Director and Producer to be reckoned with.

Million Dollar Baby is a standout compared to much of the trash Hollywood is producing today. And Eastwood? I just like him. If I had to go to war or fight in an alley, I would want Clint Eastwood on my team and in my corner, anything less and you would not qualify as a red-blooded American male.

These Are Possibly the 5 Most Accurate Sentences You Will Ever Read

Copyright 2020
by Ed Bagley

1. You cannot legislate the poor into prosperity by legislating the wealth out of prosperity.

2. What one person receives without working, another person must work without receiving.

3. The government cannot give to anybody anything that the government does not first take from somebody else.

4. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

5. You cannot multiply wealth by dividing it.

America is getting perilously close to losing its four most important freedoms:

1) A republic form of government based on law and order to ensure a civil and livable society.

2) The right to choose your own path in life, to speak freely and assemble freely without control from a government hell bent on becoming a socialist society that will control our means of production and jobs, seek to limit our source of information in the media and in our educational system and provide us with a substandard, universal healthcare system that will go broke, just like every other government program since the beginning of time.

3) The right to keep arms to protect us from a government that becomes too big and greedy in its control over us, moving into socialism and then morphing into a communist or totalitarian system with a dictator, controlling every aspect of our lost freedoms, taking our property and assets, destroying our family, raping our women and killing us when we object.

4) The right to free and fair elections to determine who will represent us without government officials fixing elections to elect the candidate of their choice, to protect our borders from criminal actors and elements that threaten our safety and security, and career politicians who can be bought and sold by special interest groups, including businesses making money and creating jobs, and minority groups littered with victims who have little interest in working within the existing system to get ahead and prosper and seek government control and government handouts while complaining and whining voraciously while achieving nothing.

America is the freest country with the greatest opportunity on the face of the Earth. Clearly, the underachievers who are unhappy in America are out to change our system rather than themselves. The do not understand this reality: When you blame others you give up your ability to change. Albert Einstein said it best: The difference between ignorance and intelligence is that intelligence has a limit.

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.)