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.

Two incidents in the United States in 2008 caused me to wonder if we should be more concerned about the apparent violence among our children.

In one incident, six teenage girls lured an apparent cheerleader squad member to a friend’s home and then brutally gang attacked her with a vicious 30-minute beating in retaliation for some remarks she apparently made about them online. Two teenage boys helped the beating along by serving as lookouts.

Upon her arrival, the victim was struck in the head several times and then had her head slammed into a wall, knocking her unconscious. She awoke on a couch surrounded by the six girls who proceeded, one at a time, to beat her senseless while using several video cameras to record the beating for posting on YouTube online.

The victim suffered a concussion, damage to her left eye and left ear, and numerous bruises. The six female suspects were all charged with felony battery and false imprisonment.

The county sheriff described the beating as a “pack mentality” with “animalistic behavior”. These are supposedly cheerleaders at a school and at least the victim has been described as an honor student.

While all the facts are not in and the legal process will play itself out, it does appear certain that the attackers were immature, self-centered, self-absorbed young teenage girls, far more concerned about protecting their image and stature (as sorry as it is) than acting like civilized members of society.

This is an extreme and pathetic example of how some of our young girls resolve their frustrations today. They beat each other up in their viciousness and stupidity and then pride themselves on how clever they are to videotape the event for posting on the Internet.

No amount of protestations by their parents that they are bright, competent, sensitive, caring, mature young women can erase their abhorrent and intolerable behavior. It goes without saying that the two young men who served as lookouts are no better.

The second incident involved a college fast-pitch softball game wherein an opposing player hit her first-ever home run with two runners on base and, when passing and missing first base on her trip around the bases, she abruptly stopped to go back and collapsed with a knee injury.

It was a close game, and if she could not touch all bases on her way home, she would be declared out. She was injured so badly she could not even stand up. Her teammates could not help her or she would be declared out. A pinch runner could have been called in and the homer would then only count as a single.

In a stunning display of understanding, compassion and sportsmanship, the opposing team’s first baseman and shortstop came over and picked up the injured player, carefully carrying her around the bases and lowering her at each base so she could touch all of the bases and have her home run count.

“You deserve it,” said the first baseman, “you hit it over the fence.”

There was not a dry eye among the injured player’s teammates when she reached home base in the arms of her opponents. The injured player’s coach, a 14-year coaching veteran, called the act of sportsmanship “unbelievable.”

The injured player’s team would go on to win the game 4-2, and eliminate the opposing team, which lost its chance at a conference title and advancing to the playoffs.

One of America’s greatest sportswriters said it best: “When the One Great Scorer comes to write against your name, He marks, not that you won or lost, but how you played the game.”

Both sets of young women in both incidents had a choice to make. The difference between the two choices is clear: you can choose to be self-centered or other-centered.

The low self-image, low self-esteem and low self-confidence level of the six girls who brutally attacked their friend with intent to harm her did not allow them to think of anyone else. Their fragile egos were so harmed by some apparent criticism that they needed to beat their teammate senseless and then post video on the Internet to recover any sense of self-worth.

The fact that some of our youngsters today cannot handle adversity is disturbing. While spending time behind bars before they were released into the custody of their parents, they joked about whether they would make cheerleading practice the next day. The fact that they apparently showed no remorse is even more disturbing. It is one thing to make a terrible mistake; it is another to think it is so funny it becomes evil.

The six teenage girls who brutally beat up their friend have some lessons in life to learn, and perhaps their parents as well. Here are eight lessons they could consider:

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

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

3) Your own thoughts and feelings are the cause of all your problems, not the world or the people in it.

4) The day you start taking responsibility for your actions, and become accountable for your actions, is the day you will start to mature as an adult.

5) What you think about me is none of my business. What is most important is what I think about myself.

6) 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.

7) Develop some character. Adversity does not build character, it reveals it.

8) Develop some integrity. Integrity is what you do in the dark when no one can see you, and even more so when you stand to profit by doing the wrong thing.

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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.)