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

A friend of mine recently suffered the loss of her father. I bought her a sympathy card and then felt that at such a difficult time in her life it was so inadequate. So I wrote her the following letter and share it with you because I believe my message to her is timeless in a time of need.

My Dearest Mary,

I am sorry to hear about the loss of your father.

Words on a card are so inadequate to express how we feel when describing a tragedy. There is such a sting when our heart breaks from sadness, and we sense that we will never be the same. We seek understanding and sometimes find ourselves alone with our thoughts when we ask: Who could have meant so much to us as the one we have lost?

I find it difficult to accept the notion that death is part of life. One seems so alive and real, and the other so quiet and distant. I would be totally lost in accepting what is so natural and normal were it not for the fact that my life journey is also my faith journey.

Thank goodness that God is in my life. He stands with us at our greatest hour of need. God brings us three vital elements when tragedy strikes our life:

1) He is with us when we are with Him.

2) He loves us and comforts us as no one else can.

3) He takes us to a better place.

I found I could bridge the gap between life and death, and death and life, through my faith walk with understanding and wisdom. Understanding comes from developing a gentle heart, and maturity in living.

Wisdom, however, does not come from learning. One could read every book in every library in the world and still not have wisdom. Wisdom only comes from God, and we must ask Him for it. It is through the grace of God that we enjoy wisdom, He freely gives it to us, but we must ask Him for it.

It has been 11 years since I flew back to Michigan to be a caregiver for my mother during her final days. She displayed such courage and grace when her time to pass had come. It was a beautiful example of modeling at a critical time for both of us.

I was very close to my mother. You have perhaps seen the medal I wear around my neck. Many who see it think that it is a medal of Mary. It is a medal of St. Mildred, an obscure saint who lived in England during the early Middle Ages and died around the year 700.

My mother Mildred was not Catholic, she was Lutheran. She had lived a somewhat turbulent life early on, and had her only two daughters (and my only two sisters) precede her in death. She lived her later life as the very best person she could be.

I wear the medal to honor her, but the truth is that I want her to know that she is in my heart and will always have a special place in my heart.

I believe that God is at work in the world today, and I choose to believe that my mother is as well. When I was a child, I was raised by my grandparents who taught me my prayers in German. When I said the words “In the name of the Father, the Son and the Holy Ghost” I wondered how safe I might be.

Today we say the “Holy Spirit” and for years I wondered who or what was the Holy Spirit. Now I understand that the Holy Spirit is manifested in the love we show to one another.

The real heroes of our time are not the rich, the famous, the rock stars, or the professional athletes. The real heroes are the people who reach out to others with loving kindness.

It is an act very similar to integrity, it is what you do in the dark when no one is looking, and especially when you do it without personal gain or glory. My mother was one of those heroes.

I am reminded about what Ralph Waldo Emerson had to say about kindness: “You cannot do a kindness too soon, for your never know how soon it will be too late”.

After my mother died I flew back home to Washington and something amazing happened. When I returned to work, I felt her presence about me every day for two weeks. It was as if she was reaching out to comfort me.

It seemed as if by the grace of God she had been lifted up to do His work as a guardian angel here on Earth, and by the grace of God had been given a two-week gift to minister to anyone of her choice before she began her new life.

After 14 days I felt her leave, but I was overcome with the knowledge that God is indeed at work in the world through His minions of believers.

I was immediately reminded of my grandfather and namesake, Edward Louis Baker, a self-taught man of integrity, decency and honesty who lived his life as a happy man, secure in his final destiny.

May God continue to bless you, your father, and your family. You, your father, and your family are in my prayers.

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.)