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 © 2007 Ed Bagley

(Editor’s Note: Part 1 dealt with A Man’s 5 Basic Jobs: 1) Defend his loved ones. 2) Protect his loved ones. 3) Provide for his loved ones. 4) Encourage his loved ones. 5) Lead his loved ones. Part 3 will appear tomorrow.)

A Man’s 5 Basic Tendencies

But, alas, women it is not to be. Here is where your dream world begins to fall apart.

Just as a man has 5 fingers on his right hand there are 5 creative tendencies a man must overcome to live out his life.

1) He believes he is indestructible. I know this is not rational, is silly and difficult to believe, however, it is tied to his ego and allows him to also do the five jobs his analytical mind tells him he must do.

It is because a man can be an extremely competitive creature that he can put his life on the line for his family when defending them and protecting them.

A man, especially when he is younger, can be exciting, dangerous and foolish. He will buy his dream sports car and drive it down the freeway as fast as he can to see how fast he can go, and sometimes with his loved ones in the car.

He will dive off of a 50-foot cliff to see if he can meet the water in the 10-foot space between the rocks below. Sometimes he will accomplish that feat, sometimes he will become paralyzed and sometimes he will kill himself in a fit of bravado.

Generally, somewhere around age 40 or 50 he will work in the yard all day Saturday and be totally stunned when he cannot get out of bed Sunday morning. This is the point in his life when he realizes he is not the man he used to be.

If he uses the brains God gave him he will not continue take risky chances. If he has learned anything from the experience, he will begin to live a more sane life.

2) He believes his reach should exceed his grasp. A man will try to do more than he is physically, mentally and emotionally capable of doing. He will set impossible goals and then prove he cannot achieve them.

He will set no limits on himself. He has an ego. He will work himself to death while ignoring his marriage, his children and the needs of his family, and he will justify this behavior because he can barely get past his third job: provide for his family.

He will justify his behavior in his mind because sometimes he is really escaping a situation at home that he does not want to face. Rather than face the music he is willing to play the music alone and suffer the consequences, generally divorce.

Couples can fight about money and how to raise their children, but when they end up in divorce court it is usually because of a lack of communication. How many times have you heard a woman say he just won’t talk to me?

When your man is not talking to you ladies, that is the first sign that your marriage is in trouble.

3) He believes he will live forever. No kidding. He actually believes he will live forever. It never really occurs to him that he will die someday. He has been told this more than once; he comprehends what is being said, but he really does not believe it.

Women do not share this problem. I expect because they become very aware of just how fragile life is when birthing a newborn.

It generally does not even occur to a man that he will die until he is well past 50. When this realization strikes him, it is like a bolt of lighting. Sometimes it occurs when his father dies, and then he realizes that he is next.

There are things that you will notice when his belief in this matter changes.

He will not leave home when the guys come by to go drinking and watch the game. He will become more aware about who he is with, where he is at and what he is doing. He now realizes that the meter on the taxi is running. He now understands that the alarm has been set on his clock, and it is ticking down.

4) Someone once said that every man needs someplace to go, something to do and someone to love. I believe that they are correct. Think about it.

A man needs someplace to go, this is the explorer in him. A man needs something to do, this is the automatic work ethic in him. He must be at work, or he could be a nuisance at home. A man needs someone to love because he needs acceptance.

You will notice that a woman who loses her husband at age 50 because he has worked himself to death can live another 30 years without a man in her life and be quite content. A man who loses his wife at age 50 will find another woman very soon or he will die, literally.

When a man loses his partner, he will make it his business to find another, and he will not make a career out of it because he already has a career. A man loses his woman and six months or a year later he marries again, usually to someone younger.

Many men do not wait to lose their wife. When they perceive they have lost something in a relationship, they simply dump their wife and find a younger model. I do not have to give women names; they can name on cue the men who have done so, both the famous and the infamous.

5) This is the most salient advice that I can give a woman about men: Listen carefully to what a man says but watch what he does, what he does is who he is. A man will always whisper sweet nothings in a woman’s ear but once he is out of bed he barely notices his conquest.

In today’s world young girls and young women have bought into the media hype that they need to walk around half naked and sleep with any guy if they want to date or have any shot at a relationship. They are being hoodwinked.

Our culture and society has become so liberal, so permissive, so pleasure seeking and so self-centered and self-absorbed that the mantra is all about me. Young girls have Paris Hilton, Britany Spears and Lindsay Lohan as role models.

What young girls and young women need to know is that after young boys and young men have had their way with them they will discard them like they would a hot dog wrapper at a baseball game.

When these same young boys become young men and think about marriage they will not be interested in used goods. Any girl or young woman who has been passed around and has slept with multiple partners will get less attention.

A man who is worth marrying and having children with has learned impulse control and has the ability to feel an urge and delay acting on it. A man who cannot or will not control himself is no better than the girls and young women he is indiscriminately sleeping with.

Someone arbitrarily decided that casual sex does no damage whatsoever to one’s psyche or emotional well being. They are, of course, dead wrong but too immature to realize it and calculate the damage.

Oftentimes when they grow up they are unable to have a lasting relationship and they wonder why. This is true for both men and women. I do not have to postulate about this, the divorce rate, heartache and failed relationships prove it beyond a shadow of a doubt.

If the fundamental basis of a marriage is great sex, you have a serious problem that is not going to go away. Marriage should be for a long time and great sex at some point may not survive the duties and responsibilities of living.

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.)