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.

On Perfectionism:
Even if the world could be perfect for you, you are not perfect nor is anyone else perfect, so there will never be a permanent, perfect match between opportunity, preparedness and reality. When your expectations are too demanding to be met in a perfect world, they can only cause you pain and misery. Being a perfectionist is mentally and emotionally debilitating. If you are a perfectionist, stop it. Never seek perfection, always seek excellence. Excellence is nothing more or less than ordinary people doing extraordinary things.

On Your Potential:
It is possible that you are squandering your ability to develop your potential by spending too much time mooning over what is not right with your life rather than using that same energy to take action to achieve what you want to happen. To do so you must first decide who you are, what it is you want, and why you are here. Once you answer those questions for yourself, you will naturally gravitate toward becoming the person you are, you want to be, and what you are going to do with the rest of your life. Along the way, you will be feeding your passion rather than trying to discover your passion on an ever ending journey to despair.

On Personal Growth:
There is a huge difference between “professional growth” and “personal growth”. Do you know the difference? Virtually all successful people have professional growth. Professional growth is getting more education (a bachelor’s degree or an advanced degree), or successfully completing a training course in some specific skill (an apprentice carpenter becoming a journyman carpenter). Personal growth is totally different because personal growth requires you to change your thought process and belief system. Of every 100 people who could benefit from personal growth, only 10 at most would even attempt to develop personal growth, and, of those 10, only 1 will achieve personal growth because it is so difficult to achieve on your own without professional help of some kind. The one percent of people who achieve personal growth could be called “1 percenters”. The 1 percenters may be 99% ahead of those who do nothing to change their thought process and belief system.

On Making Comparisons:
It is not good mentally or emotionally to compare yourself or your job with others because there will always be other people who will be greater or lesser than you regardless of what basis of comparison you use.

On Perception:
Perception is a cruel mistress, and as such is an affair you must end. Perception, without critical thinking skills, can become a reality of confusion. Perception, like fear, is real when it is imagined. There may be no real fear, but if you think there is fear, then the fear may as well be real because it is real to you. You have heard the expression, don’t let your imagination run away with you.

On Work Obligations:
You have certain obligations to your employer. They are paying you for your time and talent and expect a return on their investment just as you expect a paycheck for your obligation to them. It is a work relationship in which both parties can benefit. Do not diminish an employer’s honest effort to make a living for him or herself and provide others with an opportunity to make a living, no matter how little they may be paid for their effort. If the employee is smart, they will learn new skills and abilities, get training or education, and more on to a better opportunity.

On Responsibility:
The fact you are unhappy with your life, your job or your present situation is not your employer’s fault or problem, it is not my fault or problem, it is your fault and your problem, and you must take responsibility for creating and solving your problem. Sometimes professional help can guide to the solution to whatever is troubling you. Sometimes you can, with recognition and acceptance, a discovery process, and critical thinking, resolve the problem yourself.

On Trouble:
When you talk about your troubles, your ailments, your diseases and your hurts, you give longer life to what makes you unhappy. Talking about your grievances merely adds to those grievances. Give recognition only to what you desire. Think and talk only about the good things that add to your enjoyment of your work, and life. If you don’t talk about your grievances, you’ll be delighted to find them disappearing quickly.

On Being Satisfied:
When Is Enough, Enough? At some point, you must become satisfied with your life, your job and your situation, or you will never be satisfied, and the more dissatisfied you become, the unhappier you will become. At my age, I am practicing gratitude and trying to better appreciate and understand the concept of grace. I suggest that you consider doing the same. When I see someone who is facing a tougher situation in life than I am (a child with terminal cancer, a person with no legs because of an IUD explosion in wartime, or a person who is blind, or deaf, or mute, I say to myself, “There but for the grace of God go I”. If you do not have any spiritual growth, get some while the getting is good.

On Fear:
Let’s talk about fear again, because it is the same as perception. How do we overcome fear? How do we overcome perception? We overcome both fear and perception by taking action, not the action that speaks to our constant reminder of our problems, but concrete action on to resolve them. And the way to resolve them is personal growth.

On Growing Old:
As a man, a husband, a father or grandfather, you have an opportunity to experience more happiness and satisfaction in life that is not available to someone who is single and without children or grandchildren. The worst thing in the world that can happen to you is to grow old alone, without family and friends.
We are blessed to have children and grandchildren. We need to see another generation coming before we exit our generation.

On the Ordinary:
Do not ignore or discount things that are ordinary or mundane. The mere fact that they are so predictable allows you more time to use your creative skills to develop more opportunities for enjoyment and satisfaction for yourself and your family.

On Getting Information:
“When clients ask me a serious question, I always tell them what I know, not what I think. When it counts, never ask people what they think. Ask them what they know. You do not want to know what people think. The cheapest commodity in the world is opinions. If you don’t think so, just ask anyone anything (especially teenagers), and they will give you an answer that is often without any basis in experience, knowledge and/or reasoning. I want to know what a person knows, not what they think.”

On the Second Amendment:
“If you don’t have to give up your car because others drive drunk with theirs and sometimes kill people in head-on crashes . . . then why do you have to give up your gun because others commit crimes with theirs? What person with a lick of common sense would suggest that we ban cars and driving because some people drive irresponsibly and kill people? The same logic applies to guns.”

On Life:
“We become what we think about.”

On Hatred: Hatred is like taking poison and wishing your enemy would die. (The origin of this saying may come from Native American culture. It certainly is my favorite why to describe hatred. Hating on someone or something is emotionally and mentally debilitating, which is good reason not to practice hatred just because you disagree with someone or something.)

On Politics:
Daniel Webster: “Good intentions will always be pleaded for every assumption of authority. It is hardly too strong to say that the Constitution was made to guard the people against the dangers of good intentions. There are men in all ages who mean to govern well, but they mean to govern. They promise to be good masters, but they mean to be masters.”

On Faith:
Thomas Aquinas: “To one who has faith no explanation is necessary. To one without faith, no explanation is possible.”

On Making Choices:
The world has its fill of sham, slime and sloth. That said, there is far more goodness, gentleness and gratitude in play. In short, there are far more acts of good than evil for us to absorb and appreciate. Therefore, be a good finder and practice all things evident that create good will. You cannot change a person’s will, so avoid doing negative and evil things that unsettle the mind and heart. Relatively speaking, life is short and death is certain. Help lift the burden of others by increasing their hope in the goodness that is possible. It is never too soon to do an act of kindness, for we never know when too soon will be too late. Be positive and seek opportunities to help others by being kind, understanding and thoughtful. The good that you do will not be forgotten but rather appreciated as we all have challenges and burdens to overcome when we walk down the road of life. And don’t hesitate to applaud acts of kindness that you see. Spread goodness and you will be surrounded by love.

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.)