Brief Personal Take
For a book written in 1926 it baffles me how its advice on personal finance is still applicable today especially when you consider how much the financial world has changed over the years. I’ve read this book twice and even on the second read I still felt like I was learning something for the first time. It’s written as a story set in the ancient city of Babylon and also in an ancient style of writing as you will notice from the notes below.
It refers to 7 rules of acquiring wealth which are then summarized as the 5 laws of gold as the building blocks to wealth. Its primary focus is teaching you how you can grow wealth by simply saving a tenth of all your earnings before investing the sum into a business or investment you understand very well to create another stream of income and repeating the process until the income streams are multiple.
I loved how it
simplifies the process of wealth creation regardless of how much you earn, or
your profession, the road to wealth is still the same and it’s not only for the
rich. I’m sure you’ll enjoy reading the notes.
Notes
·
Wealth
is a power with which many things are possible. One may ornament the home with
the richest furnishings. One may sail the distant seas. One may feast on the
delicacies of far lands.
·
I
decided to myself that I would claim my share of the good things of life. I
would not be one of those who stand afar off, enviously looking watching
others enjoying. I would not be content clothing myself in the cheapest raiment
that looked respectable. On the contrary, I would make myself a guest at this
banquet of good things.
·
I
decided that if I was to achieve what I desired, time and study would be
required. As for time, all men have it in abundance. You, each of you, have let
slip by sufficient time to have made yourselves wealthy.
·
All
that night I carved, though my back pained and the smell of wick made my head
ache until my eyes could hardly see. But when he returned at sun-up, the
tablets were complete.
·
I
found the road to successful wealth when I decided that “a part of all I earned
was mine to keep. And so will you.”
·
That
was sufficient to change the heart of a sheepherder into the heart of a money
lender.
Money is Plentiful to those who understand the simple
rules of its acquisition.
1. Start thy purse to fattening
2. Control thy expenditures
3. Make thy gold multiply
4. Guard thy treasures from loss
5. Make thy dwelling a profitable investment
6. Ensure a future income
7. Increase thy ability to earn
·
But
all I earn is mine to keep is it not? Far from it, you pay the garment maker,
you pay the sandal maker, the things you eat, can you live without spending?
You pay for everyone but yourself. You labor for others. If you did keep for
yourself a tenth of all you earn, how much would you have in ten years?
·
Wealth,
like a tree, grows from a tiny seed. The first saving you make from your income
is the seed from which your tree of wealth shall grow. The sooner you plant the
seed, the sooner the tree shall grow, and the more faithfully you nourish and
water the tree with constant monthly savings, the sooner you may bask in
contentment beneath its shade.
·
Advice
is one thing that is freely given away, but watch that you take only what is
worth having. He who takes advice about his saving from one who is
inexperienced in such matters shall pay with his savings for proving the
falsity of their opinions.
·
You
first, live upon less than you earn. Next, you learn to seek advice from those
who are competent through their own experience to give it. And lastly, you have
to learn to make gold work for you.
·
If I
set for myself a task, be it ever so trifling, I shall see it through. How else
shall I have confidence in myself to do important things? Therefore I am
careful not to start difficult and impractical tasks because I love leisure.
·
Counsel
with wise men. Seek the advice of men whose daily work is handling money. Let
them save you from such an error as I myself made in entrusting my money to the
judgment of a brick maker. A small return is far more desirable than risk.
·
Enjoy
life while you are here. Do not overstrain or try to save too much. If you
can’t keep more than a tenth, be content with this portion. Live otherwise
according to your income and be not afraid to spend. Life is good and rich with
things worthwhile and things to enjoy.
·
Invest
your savings that it would bring in a good interest with safety and would
neither be lost no entangled in investments that pay no dividends.
1. For every 10 coins I put in, to spend but 9.
2. Budget the expenses that you may have coins to pay for
thy enjoyments and gratify thy worthwhile desires without spending more than
9/10 of thy earnings.
3. To put each coin to labor that it produces income
that shall continually flow into thy purse.
4. Treasure from loss by investing only where it’s safe
and you can reclaim when you want and where you will not fail to collect a fair
rental. Let wise men advise and protect thy treasure from unsafe investment.
5. Own thy own home.
6. Provide in advance for the needs of thy growing age
and the protection of thy family.
7. Cultivate thy own powers to study and become wiser, to
become more skillful, to so at as to respect thyself.
·
That
we all call our necessary expenses will always grow to equal our incomes unless
we protest to the contrary. Confuse not the necessary expenses with your
desires. Each of you and your families have more desires than your earnings can
gratify.
·
Let
thy motto be 100% of appreciated value demanded for each coin spent.
·
The
fold we may retain from our earnings is but the start. The earnings it will make
will build our fortunes.
·
A
man’s wealth is not what he carries in his purse; it is the income he builds,
the golden stream that continually flows into his purse keeping it bulging.
That’s what every man desires, an income that continues to come whether you
work or travel.
·
Preceding
accomplishment must be desire. Thy desire must be strong and definite.
·
In
learning to secure his one definite small desire, he has trained himself to
secure a larger one. This is the process by which wealth is accumulated. First in
small sums, then in larger ones as a man learns and becomes more capable.
·
Desires
must be simple and definite. They defeat their own purpose should they be too
many, too confusing or beyond a man’s training to accomplish.
·
As a
man perfects himself in his calling, even so, does his ability to earn more than
I could. I determined, more interest in my work, more concentration upon my
task, more persistence in my effort, and behold, few men did what I did in one
day. Whit reasonable promptness, my skill increased and was rewarded nor was it
necessary for me to go six times to my master to request recognition.
·
Good
luck waits to come to that man who accepts opportunity.
·
To
attract good luck to oneself, it is necessary to take advantage of
opportunities.
·
Men
of action are favored by the Goddess of good luck.
·
In
the strength of thine own desires is a magic power. Guide this magic power with
the knowledge of the 5 laws of gold and you shall share the treasures of
Babylon.
·
We
found the trail to Babylon because the soul of a free man sees life as a series
of problems to be solved, and solves them, while the soul of a slave whines,
“what can I do?” “who am I but a slave?”
·
Where
the determination is the way can be found.
1. Gold comes quickly and in increasing quantities to any
man who will put by not less than 1/10 of his earnings to create an estate for
his future and that of his family.
2. Gold labors diligently and contentedly for the wise
owner who finds for it profitable employment, multiplying even as the flocks of
the field.
3. Gold clings to the protection of the cautious owner
who invests it under the advice of wise men in its handling.
4. Gold slips away from the man who invests it in
businesses or purposes with which he is not familiar or which are not approved
by those skilled in its keep.
5. Gold 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 investments.
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