Friday, August 24, 2012

The Richest Man in Babylon by George S Clason



The internet is such a treasure trove of learning!  I have been searching for ways to get additional income and I have stumbled upon a lot of sites offering such. However, they normally ask for payment ranging anywhere within a hundred dollars.  I actually tried several and it resulted to me losing money.  Oh well, lesson learned. 

My search, however, is not totally futile.  I found a really good book emphasizing on the need for self discipline when it comes to money.  It also gives practical advises on how best one should handle and make money work for you.  I have been going through the list as fastidiously as I can and slowly but surely I am seeing results, I am nearly debt-free and getting there.  As this book has encouraged me, I hope you try reading it as well.  

Richest Man in Babylon by George S Clason:

1.   Start thy purse to fattening.  Keep a tenth of your income.  As we grow old in employment, our compensation tends to increase as well.  Nowadays, instead of increasing our investments, we choose to grow our expenditures instead. It’s time to go back to time tested ways to increase wealth, SAVE UP.

2.   Control thy expenditures. There are so many ways to spend our income.  We could now buy all the gadgets we need and don’t need, at payment schemes that are truly enticing.  There are expenses that are necessities such as water, electricity, groceries, school bills, etc.  There are those that are non essential and could be left for another day.  Excessive grocery that are often times left in your pantry because you have no use for them are considered non essential.  Additional mobile phone just to accommodate your additional sim is luxury.  It is always best to ask, do I need this? If yes, do I need it now?  If your balance sheet now doesn’t give you enough leeway for luxuries, then don’t push it.  It would still be there when you already have the extra cash to purchase it.

3.   Make thy gold multiply.  Investing has been made easy thru online trading in stocks.  You may check out Citiseconline.com for an easy way to invest long term.

4.   Guard thy treasure from loss.  As I mentioned previously, I made some bad decisions that led to money loss.  I would never allow it to happen again.  Ensure that you put your money in a secure investment.  Know the people behind them.  Read the contract’s fine print. Until all your questions have been answered satisfactorily do not invest.  Though there are times that you need to take a risk, do so with proper mentoring and advise.

5.   Make thy dwelling a profitable investment, own thy home.  One way to own your home is thru bank mortgage. This is a necessary expenditure.  Renting only puts a big dent on your pocket and you will have nothing to show for in the long run.  Start owning your home, add a little to your current rent and you could already pay amortization.  A little sacrifice now would pay off big time in the future.

6.   Ensure a future income.  Again, look for investments that would ensure that you have future income.  Check out franchises and determine the best one that would stay long in the market.  Check out those that have been long in the business.  Investing in long term stocks or bonds also pays off during retirement.  Please see a mentor or advisor.

7.   Increase thy ability to earn.  Learn new skills.  Knowledge comes from reading, listening, and taking advice.  Invest in books, trainings and seminars, and financial advisors.

Hope you actually read the book, because there are more to learn and insights to keep. 

Have a great day!!!

Yayie

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