Hello Everyone, This Is Michael The Traveling Trucker. Today’s adventure is looking back in time to wealth making principles.
The Richest Man in Babylon is a 1926 book by, George S. Clason that dispenses financial advice through a collection of parables set 4,000 years ago in ancient Babylon. The parables are told by a fictional Babylonian character called Arkad, a poor scribe who became the “richest man in Babylon”. Included in Arkad’s advice are the “Seven Cures” (or how to generate money and wealth), and the “Five Laws of Gold” (or how to protect and invest wealth). A core part of Arkad’s advice is around “paying yourself first”, “living within your means”, “investing in what you know”, the importance of “long-term saving”, and “home ownership.
Seven Cures For a Lean Purse: The First Cure: Start thy purse to fattening. Arkad advises on saving 10% of your annual income to start building up your wealth (or purse): “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 they soul”.
The Second Cure: Control thy expenditures. Arkad advises against luxury expenditures that ultimately become confused as necessities: “The gold we may retain from our earnings is but the start”, and, “What each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary”, and, “Confuse not the necessary expenses with thy desires”. These are but the 1st two. Please read the book, well worth the time.
The Five Laws of Gold:
The First Law of Gold. Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family. Arkad’s advice here is very similar to the First Cure, which is that saving is the start towards building wealth.
The Second Law of Gold. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. Arkad’s advice here is very similar to the Third Cure, which is that these savings can themselves grow and compound your wealth. The book will show you the other 3 laws of gold. This is a fun read with practical advice that is still very much needed today.
You may know some of these people in History.
John D. Rockefeller: The famous New Yorker founded the Standard Oil Company in 1870.
Andrew Carnegie: In 1892, he founded the Carnegie Steel plant in Pittsburgh which immediately began to be terribly profitable after the sale in 1901 merged with the giant US Steel.
Nikolai Alexandrovich Romanov: Tsar Nicholas II of Russia, born in 1868 as Nikolai Alexandrovich into the House of Romanov, was the emperor of the Russian Empire from 1894 until the February Revolution of 1917. Around age 48 (in 1916) his wealth was valued at up to US$881 million, which equals US$290 billion in today’s money.
Mir Osman Ali Khan: He had his own mint, printing his own currency, the Hyderabadi rupee, and a vast private treasury. Its coffers were said to contain £100m in gold and silver bullion, and a further £400m of jewels. Among them was the Jacob Diamond (Koh-i-Noor), valued at some £100m (in 2008), and used by the Nizam as a paperweight.
Henry Ford: Henry Ford was an American automotive engineer, entrepreneur, and founder of the Ford Motor Company. Through his designing of the Model T Ford and employing the assembly line means of rapid production, he was able to lower the base price of his product in order to reach a wider market. His highest earnings are recorded at age 57 and he died at the age of 83 in 1947 at a net worth of US$188.1 billion (Inflation adjusted value in 2008 dollars).
What vision and dream do you think about ? How does it consume you? People from all walks of life are making their fortunes, each and every day. You have inside the making of a billionaire, trillionaire. Only you can determine what you will accomplish.
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