7 Personal Finance Nuggets

George Samuel Clason’s The Richest Man In Babylon is just as relevant today as it was in 1926 when it was published. It is undeniably a personal finance classic.
The book chronicles how practical money management and wealth-building lessons were used by Arkad, who had a humble background as a son of a merchant but grew to become the richest man in the ancient city of Babylon. Arkad achieved this feat by riding on the wisdom he gathered from the rich money lender called Algamish.
In this short article, let’s explore the 7 simple steps identified in this 91 years old book and how you can employ these steps in diligently building your wealth. These 7 nuggets are compiled from what Arkad called “seven cures for a lean purse” which he presented to a group of 100 men over seven days in a bid to transform Babylon into the wealthiest city in the world.

Here are the nuggets:
1.     Start thy purse to fattening: “For every ten coins thou placest within thy purse take out for use but nine. Thy purse will start to fatten at once and its increasing weight will feel good in thy hand and bring satisfaction to thy soul”.
Interpretation: Save 10% of your income.

2. Control thy expenditures: “What each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary. Confuse not the necessary expenses with thy desires”.
Interpretation: Live below your means

3. Make thy gold multiply: “The gold we may retain from our earnings is but the start. The earnings it will make shall build our fortunes. Learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you”.
Interpretation: Make your money work for you

4. Guard thy treasures from loss: “The first sound principle of investment is security for thy principal. Is it wise to be intrigued by larger earnings when thy principal may be lost? I say not. The penalty of risk is probable loss. Study carefully, before parting with thy treasure, each assurance that it may be safely reclaimed. Be not misled by thine own romantic desires to make wealth rapidly”.
Interpretation: Protect your wealth

5. Make of thy dwelling a profitable investment: “I recommend that every man own the roof that sheltereth him and his. Nor is it beyond the ability of any well-intentioned man to own his home. To own his own domicile and to have it a place he is proud to care for, putteth confidence in his heart and greater effort behind all his endeavors”
Interpretation: Build or rent a home you can comfortably afford.

6. Insure a future income: “The life of every man proceedeth from his childhood to his old age. Therefore do I say that it behooves a man to make preparations for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them.”
Interpretation: Plan for retirement

7. Increase thy ability to earn: “That man who seeks to learn more of his craft shall be richly rewarded. The more of wisdom we know, the more we may earn. Cultivate thy own powers, to study and become wiser, to become more skillful, to so act as to respect thyself. Thereby shalt thou acquire confidence in thyself to achieve thy carefully considered desires”
Interpretation: Invest in yourself

Welcome to the month of November, it is not too late to start with these nuggets outlined by Arkad. Indeed, God crowns the year with His goodness but we can’t fold our hands, do nothing and expect God’s blessing. I bring you this because I wish that you prosper financially even as your soul prospers. Don’t be a lazy believer, dream big but start small, start right where you are.                        
Remain blessed.

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