As we discover knowledge, it always feels new to us; however, many of the basic tenants of wealth creation date back more years than most understand. ‘The Richest Man in Babylon’ tells a tale of wisdom discovered on clay tablets written over 8000 years ago. Why clay tablets? Well, they had not discovered paper yet! Amazingly, the principals of independence, honor and wealth creation are just as applicable today as they were so many thousands of years ago.
Pay yourself first. Take the first 10% of the money you earn and keep – don’t spend it on clothes, dinner or fancy cars. Keep it. Every dollar you pay to yourself is a future income producer for you.
Control your expenditures. Reducing your living expenses is the same as giving yourself a raise. Reducing expenditures gives you more free capital to save and invest. Everyone can find a way to survive on 90% of their current income if they so desire.
Invest your money. Don’t let money sit idle. Think of each dollar as a worker. You want each dollar to work as hard as possible.
Guard your savings from loss. Do your due diligence, rely on competent advisors and invest wisely. Stay close to you investments and watch over them. Wise investments reap rewards. Careless investments do not.
Own your home. There is no reason to rent a home when you can own the home. Owning your home provides both security and stability.
Own you income stream. There is no reason to rent your time to someone else when you can own the business and the income stream. Owning your business provides both security and stability.
Continue to learn. As you continue to learn you will increase your ability to make good decisions and accumulate wealth.
It is amazing to know that these fundamental cornerstones were being discussed 8000 years ago. It is also amazing that each person can only ‘discover’ these principals when they are ready. Two thumbs up for the book – ‘The Richest Man in Babylon’