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

Almost everyone who has graduated from high school knows that Benjamin Franklin was a famous American.

Most of us have read that Franklin used a lightning rod to prove a theory he had about electricity. Others remember that he was the one who invented the bifocals which many of us wear today. (I just ordered a new pair of trifocals; thanks to Ben, I see better.)

But few of us also know these facts and observations about Benjamin Franklin:

Franklin was America’s best scientist, inventor, writer, business strategist and diplomat of his time. He was also one of the era’s most practical political thinkers!

Franklin’s interest in electricity led him to note the distinction between insulation and conductors, the idea of electrical grounding, and the concepts of capacitors and batteries.

Franklin discovered that the big East Coast storms known as northeasters, whose winds come from the northeast, actually move in the opposite direction from their winds, traveling up the coast from the south, thus beginning the science of weather forecasting.

Franklin combined both science and mechanical practicality by devising the first urinary catheter used in America.

Franklin declined to patent his inventions, freely sharing his findings, as his love of science was born of curiosity.

Franklin became the first person in America to manufacture type, because there was no foundry in America for casting type when he opened his print shop.

Franklin reprinted an English novel–Pamela–thereby publishing the first novel in America.

Franklin created America’s first great humor classic, Poor Richard’s Almanack (Almanac, in today’s usage), which Franklin began publishing in 1732, combining two goals of his doing-well-doing-good philosophy: the making of money and the promotion of virtue. His aphorisms and observations soon became legend.

Franklin’s genius as a 16-year-old writer was obvious when he authored 14 essays anonymously that were published in his brother’s newspaper, creating the character Silence Dogood, a widowed woman. Franklin’s ability to speak convincingly as a woman was remarkable, and his writing style would introduce a new genre of American humor: the wry, homespun mix of folksy tales and pointed observations that would later be perfected by such great American writers and humorists as Mark Twain and Will Rogers.

Franklin became America’s first gossip columnist.

Franklin became the patron saint of self-improvement guides by writing many personal credos that laid out his pragmatic rules for success. Dale Carnegie would follow in his footsteps, as well as hundreds of positive thinking, modern day self-improvement authors.

Franklin manufactured the first recorded abortion debate in America, not because he had any strong feelings on the issue, but because he knew it would help sell newspapers.

Franklin was the consummate networker, forming a club of young workingmen he dubbed the Junto, which met in a rented room and, by pooling the books of its members, became America’s first subscription library.

Franklin created a volunteer fire force (the forerunner of today’s volunteer fire department), and established the academy that would later be renamed the University of Pennsylvania.

Franklin was appointed to the top post office job in America by the British government. Within a year, he had cut to one day the delivery time of a letter from New York to Philadelphia. (The United States Postal Service manages to get the same letter delivered in an average of three days today!)

Franklin retired at age 42, with an assured income over the next 18 years of approximately 650 pounds annually; in his day, a common worker earned 25 pounds a year, so Franklin retired with an annual income 26 times a normal working person’s wages! (In today’s money, if you were making $50,000 a year in income, Franklin was getting by in retirement on an income of $1.3 million–$1,300,000–annually.)

Franklin became America’s greatest diplomat by negotiating the support of France (its money, its recognition and its military support), that led to the success of the American Revolution, and the creation of the United States of America as an independent nation.

Franklin was instrumental in shaping the three great documents of the American Revolution: the Declaration of Independence, the alliance with France, and the treaty with England.

Franklin was the only person to sign all four of America’s founding papers: the Declaration of Independence, the treaty with France, the peace accord with Britain, and the Constitution of the United States.

Franklin’s most important vision was an American national identity based on the virtues and values of its middle class.

Franklin came up with the concept of matching grant money, showing how government and private initiative could be woven together for the common good.

Franklin was America’s first great publicist. He carefully crafted his own persona, portrayed it in public, and polished it for posterity.

Franklin perfected the art of poking fun at himself, recognizing that a bit of wry self-deprecation could make him seem even more endearing.

Franklin was the first to note that “nothing can be said to be certain except death and taxes.”

Franklin was also the first to remind us that “a penny saved is a penny earned.” Franklin might also have said “a penny, invested wisely, could be the start of a small fortune.”

Benjamin Franklin would have been one of the first people of his time to use computers, and would have been one of the first to start an Internet marketing business. Franklin loved to make money, and he loved the virtues of independence, self-reliance, hard work and innovation, all virtues associated with making a lot of money.

Franklin would have been front and center with today’s Internet marketers, in constant contact with his fellow entrepreneurs through online forums, e-mail messaging, and hobnobbing at seminars around the country and overseas (Paris was his second home).

Was Benjamin Franklin awesome? Absolutely.

About the Author: I am an Internet Marketer. For an excellent biographical source on Ben Franklin, I recommend Walter Isaacson’s masterpiece: Benjamin Franklin, An American Life.

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.)