Today’s episode is diving DEEP into some simple yet MEATY financial principles inspired by a book we read recently, The Richest Man in Babylon by George S. Clason. It’s full of historical lessons, stories, and principles for building financial wealth that we can EASILY apply to our world today.

In today’s episode, we’re covering the 7 cures to a lean purse (aka lessons to avoid having a thin wallet) from the book, expanding on each principle taught, and sharing our own advice and experiences with each.

This book is SO incredible and is recommended a LOT in the financial world for good reason. 

 

1. Start thy purse to fattening 

Set aside 1/10 of all money you make. At least 10% of your income should be set aside and saved. 

 

2. Control thy expenditure

To control your expenditures. How can we keep 1/10th of all we earn in our purse if all we earn is not enough to pay our necessary expenses? Every penny we earn goes towards bills. How can you set aside 1/10? Your expenses will always match your income UNLESS you limit them intentionally.

3. Make thy gold multiply

Invest the 1/10th you set aside. Put what you saved towards something that makes you money. Don’t save 1/10th of your money for a boat. Prioritize investments. Gold in a purse is gratifying to own but earns nothing. Hoarding money in a savings account does nothing for you.

4. Guard thy treasures from loss 

Steward the little you have now and it will set you up and train you for success in stewarding a lot. There’s a misconception that we have to wait til we become “rich” or make a lot of money in order to start learning how to invest. Invest and steward the little you have NOW so that when you do have a lot, you won’t blow it. And you feel confident handling it. Don’t make stupid investments – invest only where thy principal is safe. Make sure your ROI is worthy of the investment. Consult wise men and experience in handling gold. Seek wise financial advisors you trust.

5. Make of thy dwelling a profitable investment

Own your own home eventually, and don’t rent forever giving away money to another landlord who’s building wealth off of YOUR money. However, we recommend not buying FIRST wasting your capital for a downpayment that is ultimately a liability that doesn’t make you money. 

“The rich acquire assets. The poor and middle class acquire liabilities that they think are assets.” – Rich Dad Poor Dad 

Your home is not a money-making asset UNLESS you count appreciation over time or Airbnb it out or have a rental on the property. 

 

6. Ensure a future income

Prepare for retirement NOW. Make preparations for your family once you die or can no longer work. Create a legacy that lasts beyond you. Stop living for today. Make choices and decisions for your future NOW. Invest in real estate now. Put money into investments that pay you interest over time. It compounds over the long haul. No man can afford to NOT ensure a treasure. Every single human being has to prepare for old age, retirement, and the future. If you don’t, that’s how people end up living off of welfare and social security. 

 

7. Increase thy ability to earn

Learn and educate yourself on the principle of money and investing. Learn skills in business, and finance, but also profitable skills. Increase your capacity to earn – be skilled at what you do, and always have an attitude of eagerness to learn. Never have a haughty attitude thinking you know it all. The man who seeks to learn more of his craft shall be richly rewarded. Be the best in your industry. Experience and education will reward you in the future. Pay your debts with promptness, don’t buy what you can’t afford, take care of your family don’t leave them hanging, make a will and a plan for death, and have compassion upon those less fortunate. Give and be generous with your time and money. 

 

 

Show notes

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The Richest Man in Babylon by George S. Clason

 

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