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.

(Ed’s Note: This is Part 2 of a 4-Part Series.)

Copyright © 2007 Ed Bagley

As one who has spent 33+ years in the high end of the resume writing business crafting 6,000+ hard copy resumes for executives and professionals making $60,000 to $500,000 a year, this is not my experience of how things get done in the hiring process.

For one thing, the more responsibility and more income the position generates the greater the likelihood that a hard copy resume and cover letter will be requested in the hiring process. Company officers higher up in the food chain than human resource types want more rather than less information on which to make a more intelligent hiring decision.

High level corporate officers would also like to view the writing skills of the applicant. They are well aware of the fact that the potential corporate-level hire probably had a pro write his or her resume.

They also understand that the client had to provide information for the process and this is one indicator of how well they present themselves professionally, and how well they can transmit pertinent information about themselves.

They are interested in the cover letter which, I might add, most online application forms and even resume posting opportunities many times do not address.

This is important because there is one thing that can be done by a pro in a cover letter than cannot be done by a writer in a resume, no matter how good of a resume the writer creates.

Pay attention because this important: You can demonstrate people skills in the cover letter and you cannot do so professionally in the resume product.

So what is the big deal about demonstrating people skills? Only this: people skills are the most important trait you have to present in selling yourself at an interview.

People skills are more important than education, training, experience, intelligence, talent and knowledge.

Do not misunderstand what I am saying here.

I am not saying that education, training, experience, intelligence, talent and knowledge are not important in the hiring process. I am saying that people skills are even more important.

The human process of “people contact” (my quotes) forms your attitudes about everything, and your attitude drives your personality. Show me someone with a good attitude, and I will show you someone with a good personality. Show me someone with a bad attitude, and I will show you someone with a bad personality.

If you do not think so and are content to remain ignorant, then explain to me how a high school dropout who lacks subject-verb agreement in his or her conversation can earn more than $1 million a year in sales.

Companies hire high school dropouts in sales even though the description for the job requires a high school or college degree, and proven experience selling in the field.

Why? Simple, do you know how many people can sell effectively? Less than 5% on anyone’s best day. When business employers realistically require education as a component in hiring they severely limit their ability to find people to generate sales to keep them in business.

Do people who believe this tripe being peddled about online hiring even realize that less than 5% of the employees in our economy are in professional sales, and that it is this same 5% of people who create the jobs for the other 95% in our economy?

Even Diane Stafford would be unnecessary as a journalist at The Kansas City Star if someone in their advertising department did not sell enough advertising to cover the newspaper’s overhead that includes her salary. She produces nothing and sells nothing and is irrelevant without ad sales to support her very existence.

Now some smarty is going to say that Diane Stafford is such a great writer than her writing will help The Kansas City Star draw readers for its ads. Fair enough, but if that point has any legs to stand up then take the ads out of the paper and try to sell it.

I have owned a newspaper and know better. I have worked as a managing editor of a daily newspaper property for another owner. He thought the same thing I did; this is why he did not pay me a $1 million a year to be his managing editor. Some of the ad salesmen made more than I did.

And? What’s the point? Well, think about it. How are an online application and an online testing process going to reveal anything about a person’s people skills in the hiring process?

At least with a hard copy resume and cover letter you can use the cover letter to demonstrate your people skills. Ergo, high level corporate executives are not going to let human resources (HR) limit them to online processes only.

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.)