Early men from centuries ago mastered the art and act of money making. Looking at the principles and methods they adopted then, you will agree with me that those principles never really changed rather they are enhanced to suit our life styles today. Those principles are interpreted by different people the way they understood them, but in the actual sense everyone of them is saying the same thing in different ways.
Finding solutions to your lean purse - Image credit: Minority Eye
Most successful men do say 'Money making is a profession one must learn, practice and perfect', success is an habit. This profession must be learnt either directly - by gathering personal experiences as one threads the paths of life, or indirectly - by tapping (reading or learning) from those who have threaded the same paths and have had huge wealth of experience.
"Money make possible the enjoyment of the best the earth affords"
These seven principles are the easiest to follow for those who desire real wealth. Great men wouldn't show you shortcut to success, they will only show you easy and steady paths to thread in order to attain great wealth. These principles are extracted from a book 'The Richest Man in Babylon' written in the 1920s by George S. Clason and still relevant till tomorrow.
The seven cures to a lean purse
These were the 7 lessons Arkad who was said to be the richest man in ancient Babylon taught the Babylonians, historians believed these lessons well learnt transmuted into great wealth the citizens of the great city enjoyed during their existence. This story containing the seven cures for a lean purse and other stories were excavated from the ruins of the great city Babylon.
The author of the book "The Richest Man in Babylon" believed that if these principles worked for the Babylonians then, surely will it work for people during the 1920s and I believe these principles will work for me and others who wants to climb the ladder to great success.
1. First Cure: Pay yourself first
The first cure to a lean purse state that "A part of all you earn is yours to keep", this simply means you should always save nothing less than 10% of any amount you may earn either on a daily basis, weekly basis or monthly basis. The amount (no matter how small the 10% may be) doesn't matter at all, what matters is practicing this habit of saving.
Perhaps I may say paying yourself first. This habit simply illustrate the process of planting tiny seeds, the size of the seed you planting doesn't matter but how well you plant the seeds. When you eventually start paying yourself, set the target for the money you are saving. bear in mind that;
Your saving must not be less than 10% of your earnings, but may be more than 10% if you can afford it
You mustn't touch the money no matter the situations you may be in
You mustn't touch the money if you have no useful means of investing it
Touch the money only when you have profitable business you want to invest in - else you will pull up your tree of wealth from the root
Never stop paying yourself
(In case you incur great loss investing the money, start over again - the calendar never gets tired of starting all over again)
2. Second Cure: Control your expenditure
The second cure lays emphases on how you spend your income, cut down your spending. Do a very feasible scale of preference, prioritize your needs according to their importance or usefulness. It is better to deprive yourself of little things now than deprive yourself of a blossom future. Let the amount you spend be within the remaining 80% left (10% for your payment, 10% for tithe) till another amount comes in. This may be difficult at first, but as time goes on you will fit in pretty good. For family men or women, discuss this with your better halves and embark on the journey to greatness together.
(In case you forget: Adaptation is still one of the characteristics of all living things - that hasn't changed in Biology)
3. Third Cure: Multiply your savings
"Money is plentiful for those who understand the simple laws which govern its acquisition", money sitting in bank or your safe isn't profitable. Invest your money in businesses that are profitable - either by investing in other peoples' business, companies or reinvesting it your own personal business. Make sure your savings don't just sit idle in your save or bank account (excepts it returns tangible profits in that bank). There are many businesses that you can invest your money in without regretting your actions later, let your earnings start working for you.
(Money sitting idle for too long may die of obesity, keep your savings healthy)
4. Fourth Cure: Guard your investment from loss
"Misfortune likes a shinning mark, so guard your Gold with utmost care", the money in your wallet or purse is your gold. Guard it well, else misfortune lays waste of it if handled carelessly. The third cure for a lean purse told you to employ your savings and make them earn more money for you. In the process of investing your hard earned money, if care isn't taken you may loss it to bad business of con-men. So, before investing make sure you have adequate knowledge of the business you are investing your money in or the company you are transacting business with. Test not the depth of water with both feet.
(look thoroughly well before you leap)
5. Fifth Cure: Own your own home
The fifth cure teaches us who desired golds in large quantity to acquire our own houses. These will be of great help in helping us to achieve our aims easily. Instead of paying the landlord huge amount every year or every six months, that amount can be used to support one business or investment.
(There is great joy in owning thy own house.)
6. Sixth cure: Secure the future
The sixth cure teaches us to put plans in place for unforeseen circumstances, no one knows what may befall him or her the next few minutes. It is essential that one puts concrete plans in place to cater for unexpected situations such as sudden death or accidents that may limit one ability to work or terminal illnesses - with good future plans in place, wife or husband will be able to move on pretty fine. Old age is another thing should plan ahead for.
7. Seventh cure: Increase your ability to earn
"Your ability to learn affects your ability to earn", two things will make a man to stop learning:
Old age: No matter the age you stop learning be it at age 80 or 20, it means you are old
Tired of leading: Anyone who stops learning is simply tired of being head i.e he or she is tired of leading
If you are not old or tired of leading, then you shouldn't be tired of reading and learning. Learn more to earn more.
Great men do three things: they learn, unlearn and relearn