Here i share you lesson i learned long ago from the world's one of best classic finance book,'The Richest Man In Babylon'.
George S. Clason was a soldier, businessman and writer. The Richest Man In Babylon is his most popular piece of work, consisting of numerous parables, metaphors and stories set in ancient Babylon.
To bring your dreams and desires to fulfilment, you must be successful with money.The laws of money are like the laws of gravity: assured and unchanging.
Money is plentiful for those who understand the simple laws of making money.
The 7 simple rules of money:
1) Start thy purse to fattening: save money.
- Control thy expenditures: don't spend more than you need.
- Make thy gold multiply: invest wisely.
- Guard thy treasures from loss: avoid investments that sound too good to be true.
- Make of thy dwelling a profitable investment: own your home.
- Ensure a future income: protect yourself with life insurance.
- Improve thy ability to earn: strive to become wiser and more knowledgable.
Still don't understand !!!
There are 3 lessons from book that you can apply right now to start building wealth:
- Live below your means.
- Learn how to be lucky.
- Never take on debt.
Lesson 1: Live below your means.
What is it that makes rich people rich?
I’m not talking about the kids of millionaires or oil sheiks, who’ve always been rich.
I’m talking about the people who, after working hard for a few decades, can walk out the door of their job and never return again, because they can live off the wealth they have accumulated.
Do they stuff every penny they earn into their mattress? Or do they just work abnormal hours no one can keep up with?
The truth is in the middle.
Wealthy people develop their riches mostly based on 2 things:
-Living slightly below their means.
-Investing the money they save well.
Living below your means is the first checkpoint you have to pass to even have the money to invest, so why not start there?
You don’t have to stop drinking the occasional Latte or going to the movies. But you can still spend less than you earn.
What each person calls their “necessary expenses” will always grow to match your income unless you resist that urge. Do not confuse your necessary expenses with your desires.
The Richest Man In Babylon suggests you save 10% of your income to invest.
I personally have been saving 25% of my income for the past year and it’s put me in a much more relaxed situation financially where I have some savings and even a small portfolio of stocks.
So look at your expenses and cut the ones that are really unnecessary and you’ll see finding those 10% is easier than you think!
Lesson 2: Learn how to be lucky by working hard.
The summary intro said “learn how to be lucky”. What a fascinating idea, isn’t it?
This is where most people are mistaken. No one ever said luck was something that can’t be manufactured. We just expect it to be.
That’s something called chance. Luck, however, is based on opportunity and you can create more opportunities by working hard.
Consider Jerry Weintraub’s story.
This man called Elvis’s manager every day for a year to pitch him a tour he wanted to take Elvis on.
364 times, the man said ‘No’. But eventually, on the 365th day, he said yes.
Jerry didn’t get lucky. He worked. Every day he called, until the timing was right and the opportunity presented itself to him.
That’s how you become lucky.
Lesson 3: Never take on debt.
One of the first steps to build wealth is quitting the irrational self-talk that makes you justify purchases you can’t afford.
When you can’t afford a fancy new car, or a flashy TV, well, you can’t afford it.
But when you go out and get a loan to finance it, you’ll delay your journey to wealth for months or even years, because you now have to spend the money you save each month to pay off the debt, instead of being able to invest it.
Instead of solving your problems with loans, ask “how can I afford this?” and figure out ways to make more money or save more money, so you can buy the things you want.
If you are in debt, live on 70% of what you make. Save 10% for yourself. Use the remaining 20% to repay your debts
Taking on debt has never solved any problems, it just creates more, so finish the spending and start saving!
Thanks for going through!............ PLEASE
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