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.

Copyright © 2007 Ed Bagley

(Editor’s Note: Part 2 dealt with A Man’s 5 Basic Tendencies: 1) He believes he is indestructible. 2) He believes his reach should exceed his grasp. 3) He believes he will live forever. 4) He needs someplace to go, something to do and someone to love. 5) Listen carefully to what a man says but watch what he does; what he does is who he is.)

4 Realities in a Man’s World

So men have 5 basic jobs and 5 basic tendencies. Now we must deal with four basic realties about men and world they live in.

1) How Men Are Judged. Our culture and society judge men by one yardstick more than any other: how much money do they make. A man who makes a lot of money is considered successful, even though he may be a lousy husband and father. He has little incentive to be something better.

This happens in part because men in the United States were traditionally perceived as the breadwinners of the family. That notion has long passed as more women need to work alongside their partner to support their family rather than remain home to raise their children.

Day care is everywhere. Too many kids come home and there is no parent in the house. Teens can get into trouble faster than they can turn around. They are also not as safe in today’s world; they are easy targets for predators.

I am told that only 25% of families are traditional in the sense that there is a father and mother who are married with children in the house.

We have as many people who are apparently single, many of whom have live-in boyfriends and other assorted arrangements too numerous to mention. Too many of these “roommates” are bums and leeches who do not even have a job, they sit around all day and try to look smart when they are not causing harm to the children.

It is sad that so many women need what little, misguided attention they get so badly that they will support these jerks and put their children in harms way at the same time.

All of this does exactly nothing to relieve the pressure on the men who do work to produce more money. It also distorts a man’s view of what is important and what is not important. Most men do not live a balanced life; their job or career dominates their life, many times to the exclusion of their marriage and children.

2) A man’s work is his life. This is an extension of the first reality of how a man is judged, but it is also a fact of life.

Men tend to be fixated on their work and view their work as their greatest mission in life; they have been told that their greatest mission is really to love their wife and children and be a good husband and father, but they usually find this injunction easy to ignore. It is much easier for them to treat their wife and children as a necessary duty or afterthought.

If you are foolish enough to think that this is more false than true ask yourself why most married couples spent only 3 to 5 minutes a day actually talking to each other. Hint: It is not because they do not have the time to do so.

3) Men and women are not alike in some obvious ways, but they are also not alike in their basic needs.

Generally, women want security. They want to be provided for financially. This is why they will marry a guy old enough to be their father, or a guy who is not as attractive to them. Women always worry about having enough money, and the older they get without enough money the more they worry about it.

Generally, men want respect and recognition, whether they are financially successful or not. If the woman treats a man like a king and thinks that he made the moon and set the sun in place, the man is not likely to stray very far from home.

If not, he may well become an absent husband and father. This is true whether he is home or not.

4) Women need to understand that a misguided son (not a daughter, but a son) is the responsibility of the father, not the mother.

This is because women cannot always control a willful son whose male ego will not allow him to listen to a woman. It is his father who must set an example for him, and keep him in line.

Too few men know and understand that they cannot be too critical of their son or they will hurt his self-esteem and self-confidence, two qualities every successful, productive man must have to function competitively in society. A man should shower his son with encouragement and positive reinforcement.

Nothing is more distressing to a successful man and former successful athlete than to see a father who coaches his son’s little league baseball team screaming at these youngsters for striking out in a critical situation or making a bad play.

Fathers who coach little league and cuss, scream, yell and berate youngsters are some of the biggest losers. Almost without exception they have been athletes who never did squat and are trying to overcome their shortcomings through their sons.

Do not be deceived by his cussing. Cussing is no more or no less than a sign of a low self-image. If you think listening to a man cussing on a recording is cute and so impressive because he is making a real statement about himself, you are wrong. It is not cute or appropriate at any time, and especially around children. Period. There are no exceptions.

Marry this man and you may live in hell. If he is overly critical of his son he will probably be overly critical of his daughter, his wife, his employer and his next door neighbor. This is a man who needs some professional help; you will not be able to overcome his ignorance.

A man of any age who will get a girl or a woman pregnant and then become absent forever is a lower life form, yet this is what happens all too often.

The reality is that not all men are cut out to be men, it is much easier for some of them to be totally self-centered and self-absorbed. Men who worry about their own happiness more than others lead a very unfulfilled life and pride themselves on their stupidity.

They become easy marks for evildoers and miscreants. Some of them end up in jail, others get killed in a deal gone wrong, but all of them lead miserable lives because they mortgaged their destiny by being irresponsible. They pay a heavy price and are no wiser in the end.

So women, now you know 14 things about men. Use this knowledge to better understand what drives men and why some men can be more interesting than others.

When you start making choices about what you should do with boys and men in the friendship cycle, the dating cycle, the relationship cycle and the marriage cycle, always remember this: listen to what a man has to say very carefully, but watch what he does. What he does is who he is. And that is what you get–who he is, not who he says he is. Do not be fooled, be smart in your choices.

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.)