So, understand the simple rules of acquisition. Has anyone seen or read this book? The Richest Man in Babylon. This is a bit of a parable. It tells us how we can create more money, keep our money and grow our money. You might have to move fast for this one. Save 10% at least. Control spending. Necessary expenses will always grow to your income, right? Who's had a pay-rise here before? When we got that pay-rise did we automatically shoot it off into a savings account? No! We didn't! We bought the $25 bottle of wine on Friday night instead of the cheapy 8 buck bottle of wine. All of a sudden we going on a 5-star holiday, when before it was a 3-star holiday. So we spend to our income and most people spend 110% of their income. Right? It's not quite worth doing. You've heard the saying, "Don't spend more than you earn".
Do you ever wonder how people get to be wealthy? How can they afford to drive around in the latest BMW, or build an extension on their home or be in a position where they can help their kids buy their first home…
Perhaps you saw your Jim and Jane from next door wheeling their suitcases down the driveway over the weekend and you thought to yourself ‘they’re probably heading off overseas again for another luxury escape. How on earth can they afford it?’
Most Start With Nothing But A Desire To Grow Wealth
We’re big fans of the book The Richest Man in Babylon by George S Clason. Countless readers have been helped by the famous Babylonian parable, hailed as the greatest of all inspirational works on the subject of thrift, financial planning, and personal wealth. And we love it.
It certainly is a must read for you if you’re wanting to change your current financial position as it offers an understanding of – and solution to – your personal financial challenges that will guide you through a lifetime.
Babylon became the wealthiest city of the ancient world because its citizens were the richest people of their time. They appreciated the value of money. They practised sound financial principles in acquiring money, keeping money and making their money earn more money. They provided for themselves what we all desire… incomes for the future.
The Babylonians were incredible switched on when it came to money. Unfortunately today, few people know how to acquire wealth as most people lack the knowledge of how to keep any part of income earned.
Without wisdom your money is quickly lost by those who have it. But with wisdom wealth can be secured by those who don’t currently have it.
Money Is Plentiful For Those Who Understand The Simple Rules of Acquisition
1. Save – 10%
2. Control Your Spending. ‘Necessary expenses’ will always grow to equal our income unless we protest to the contrary. Confuse not the necessary expenses with your desires. Let me ask you a question. How often do you do this? Here's a handy tool to help you get started.
3. Multiply Your Money. Now you are saving a little each week and have controlled your spending, it’s time to put your money to work and increase it. Money in your pocket is gratifying to have but sadly it earns nothing. You’ve worked hard for your money. Now we need to make your money work hard for you!
A man’s wealth is not in the money he carries in his purse, it is the income he builds, the golden stream that continually flows into his purse and keeps it bulging. That is what we all desire – an income that continues whether you’re working or off sailing around the world. 4. Keep Your Money Safe. Guard your money from loss by investing only where it is safe, where it may be reclaimed if desired and where it will collect a good return.
The book says to consult with wise men (or women) – secure advice of those experienced in the profitable handling of your money. Let their wisdom protect your money from unsafe investments.
5. Invest Profitably. Invest in your own home and it will greatly reduce your cost of living, make available more of your earnings.
My thoughts on this are that it doesn’t necessarily need to you be your own home – but rather, a property. It could be a home you live in or an investment property but the general message is to invest your money in to a property to grow it.
6. Insure A Future Income. No-one can afford not to insure their assets / money for their old age and the protection of their family, no matter how prosperous his business and investments may be.
7. Increase Your Ability To Learn. The more wisdom we have, the more we may earn.
Financial Security = Freedom
Without choices in life you are restricted and have limited opportunities to live the life you would really like. Think for a moment, if you were in a great financial position what would you choose to do with your money? How would life look for you?
Are you helping your kids financially? Lending them a deposit to buy their own home, helping them to buy a car, providing the funds to assist them in starting their own business or sending them off to university to build on their education.
Perhaps you’re upgrading your home or doing that renovation you always wanted to do.
Maybe you’re helping your local community, church or support group. Here at Wealthology we are aligned with Thankyou so our work not only allows families to live a life of abundance but through our impact program together we’ll be able to take a holistic approach to combating poverty by funding safe food, water, hygiene services and health programs around the globe to empower families in need.
It might be important to you to retire your partner so they can spend more time with your kids or be able to help your parents in their later years.
Great thing is that you can do whatever you like with the money, as it’s your choice. Create the freedom to make the choices in your own life based on whether you would actually LIKE to do something rather than if you can afford it!
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