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 © 2015 Ed Bagley

When we are born, grow and develop, we form a concept of what life has to offer.

If we grow up in a single-parent home without a father, have little exposure to an abundance of food, shelter and clothing, live in a low-income housing area, and experience poverty, drug activity and violence, our outlook on life is hardly positive.

If we grow up in a home with both a mother and father, have adequate to abundant food, shelter and clothing, live in a high-income housing area, and experience stability, substance, support, encouragement and opportunity our outlook on life is far more positive and productive.

We quickly learn our station in life, and as a youngster we also realize that we do not have the knowledge, experience, maturity, means and opportunity to easily overcome our circumstances when at an apparent disadvantage.

This is when our concept of what life has
to offer now also develops our expectations of what life has to offer, and whether we can, if disadvantaged, overcome our circumstances and begin to develop a new and better life for ourselves. Some of us manage to do this, others do not.

As we come to understand our exact circumstances and place in life, we face the challenge of what to do next.

It should come as no surprise that what happens to us as we muddle our way through the up and down process of growing up with what we perceive to be successes and failures, out attitude determines much of what happens to us.

If our attitude is negative, our personality will become more negative and people will see us as more as a liability than an asset, someone who is more difficult to satisfy and deal with.

We quickly learn that we have enough issues of our own without being burdened by the issues that others struggle with. Life does, after all, present all of us with challenges we need to overcome. It is as common as breathing to say that we all have our crosses to bear.

If our attitude is positive, our personality will become more positive and people will see us a normal, productive, positive person who is easy to be around and helpful to us.

The positive person will become a people magnet, someone everyone wants to be around and work with, that includes everyone except the negative person, who will likely see the positive person as someone more fortunate than themselves.

This can lead the negative person to jealousy, envy, anger, frustration, disappointment, and ultimately violence, causing no one to want to be around them or have them as a friend.

It is easy to say and sometimes harder to understand that attitude drives personality.

If you show me someone with a continual bad attitude I will show you someone who is a great candidate to develop a bad personality.

If you show me someone with a continual good attitude I will show you someone who is a great candidate to develop a good personality.

This is a fundamental fact of life, and what happens to us as we grow up and hopefully mature into productive, well-adjusted adults who can handle duties, responsibilities, commitments and obligations, and raise their children to do the same while becoming well-adjusted children in future generations.

Abraham Lincoln said that people are about as happy as they make up their minds to be. You will agree that Abraham Lincoln was exactly right when you understand that attitude is a choice in your life. You have a choice to be positive or negative in every event in your life.

Some people say that life is about 10% of what happens to you and 90% about how you respond to what happens to you in life. Unless you are one of life’s greatest losers, you will be cheered up and motivated by stories about people who have overcome great odds to achieve amazing accomplishments.

This is where our concept of what life has to offer, and expectations of what life has to offer, meets our challenges of what life has to offer.

This is about whether our hopes, dreams, aspirations and achievements will be possible for us. One thing is for sure: unless believe we can do something, we never will.

Our attitude is so key as to whether we will be able to overcome our setbacks in achieving where we want to end up in life. When we believe something becomes possible to achieve, it will happen quicker when we bring a good attitude, ambition, effort, determination, acquired knowledge, skill development, understanding and maturity to the process.

Clearly, we can accomplish goals when we want to or need to, that is to say, we need a reason to do something, and it has to be a deep-seeded enough reason to overcome the obstacles on our way to accomplishing our goals and desires.

If you are hungry and starving, and need food to live, you will find a way to get food as an adult without stealing or begging for food. It is a matter of understanding that in any life event, there are only two outcomes: results or excuses.

We are ultimately exactly where we are in life as a result of the choices we have made.

If we want better results, we must make better choices. We may not achieve every one of our goals in life, but we can achieve many of them when we make the right choices at the right time for the right reasons.

If you do nothing more in life than do the right thing for the right reason, you will become very successful.

Success in life is much more than making the most money, living in the best house, driving the best car, or having the best vacations. Monetary and material success can certainly make your life easier, but it has little to with happiness.

If you ever expect to be happy, you have to add people to the equation. You must become other-centered rather than self-centered.

When you are single, you can afford to be self-centered if not happy. When you get married and have children, it is no longer just about you, it is also about your wife and children, who need your support, love, affection, understanding and encouragement.

All of us need something to do, someplace to go, and someone to share our life with, in other words, a job with a career or becoming the best housewife and mother, a home with security and love, and spouse or partner who you love as they love you.

Albert Schweitzer said it best: Success is not the key to happiness, happiness is the key to success.

No one with a bad attitude and a bad personality is happy, everyone with a good attitude and a good personality can enjoy happiness. Again, attitude rules the day, and ultimately where you end up in life.

Albert Schweitzer found his happiness in Africa. Schweitzer was a theologian, organist, writer, humanitarian, philosopher and physician. In other words, a very smart, accomplished person.

He received the Nobel Peace Prize in 1952 for his philosophy of the “Reverence of Life”. His philosophy was expressed in many ways, but most famously for founding and sustaining the Albert Sweitzer Hospital in Lambaréné, in the part of French Equatorial Africa which is now Gabon.

Sweitzer knew happiness; it was Sweitzer who first said:

“Success is not the key to happiness, happiness is the key to success”.

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.)