adminaspects of financial management.
The lessons in financial wisdom proffered in the book relates not only to household finance alone but corporate and overall financial management.
In the book published in 1926, Clason gives a historical overview of Babylon, noting that although its very name conjures visions of wealth and splendour, the city itself was located next to the Euphrates River in a flat, arid valley, with no forests, no mines and not even stone for building. It was not even located upon a natural trade-route.
The rainfall was insufficient to raise crops. Babylon is portrayed as an outstanding objective of man’s ability to achieve great objectives, using whatever means are at his disposal.
All of the resources supporting this large city were developed by man.
Those in business and intending to go into business will find the book useful and inspirational as they will learn how to be successful with money.
Written in an easy to follow and uncomplicated format, the best-selling book is a must read for those seeking guidance in financial planning and personal wealth.
Clason spells out seven basic principles of effective money management as follows:
Save at least 10 percent of all that you earn for an investment fund for the future;
Learn to live on 90 percent or less of your income;
Invest your accumulated capital into projects that will provide a safe, steady income, taking full advantage of compounding of the interest received;
Invest only in areas in which you have expertise or with people who are experienced;
Buy the house in which you live so you do not waste any money on rent;
Have a realistic insurance programme and
Always keep working at various ways and means of increasing your income.
We have all heard people saying that that money is not everything and that there are some things money cannot buy.
But it is also a fact that money is the medium by which earthly success is measured.
From this perspective, wealth is a scorecard by which people measure themselves.
The author states that money has the ability to offer freedom to do things.
Relating to the present environment, it is evident that people are able to make better decisions when they are financially empowered.
Money represents success only through its ability to provide freedom to do things.
It is not an end in and of itself, but only a means to an end. The possession of sufficient amounts of capital makes possible the enjoyment of the very best services and goods the world has to offer.
Through a narration of the story of a chariot builder, musician and the richest man in Babylon it is easily explained that you need to consult those in the know how to prosper.
You will be surprised that they are more than willing to help you. By the same token however, do no expect them to hand you a wad of notes, you have to work for it.
Many people have convinced themselves money has a way of avoiding them like the biblical plague.
This belief is usually based on their experience in which they are always short of money and scrambling to pay bills. The explanation that money is plentiful for anyone who understands the laws governing its acquisition rings true and motivates all and sundry to make a better life.
To secure significant amounts of money, it is probably better to spend less time lamenting the bad luck of the past and more time focusing on the laws of acquisition of capital.
Over the years, experience has shown that there have always been some people who have had more money than others.
That is a reality of life and this may just be a stroke of luck on their part and the other scenario could be laws that make this possible.
Anyone who accepts that luck plays a major role has a good chance as anyone else to strike the jackpot during their lifetime.
However, depending on luck rather than effort also means the same person is willing to accept that nothing can be done to change whatever destiny luck allocates.
A far better approach is to believe that money can be attracted and governed by set laws and principles, and to focus on learning and applying those laws to reap the rewards.
It has been established that anyone who desires to accumulate wealth and put it to good use requires time and a learning experience.
Most of us waste our time indulging in various activities that in fact do not add any value to our lives.
We need to look at time as a resource that needs to be gainfully employed. In terms of learning we must seek knowledge on how to generate wealth and make an effort to know what is not commonly known about a particular subject.
There is much more to learn from the book and those interested should make an effort to read all about it and the fact that it is applicable more than a decade after it was published makes it even a better read.
As I have always said, let’s make money.
leeroy