The Seven Cures for a Lean Purse

There's a reason why nobody receives financial education in the public school system. It's because they don't want you to have it.

Without financial education, you make a more docile sheep, and you pay more taxes. But you can still find the info you need! The Richest Man in Babylon by George S. Clayson is a text that we recommend in our coaching programs for learning financial literacy.

In the book, we meet Arkad, the richest man in Babylon. This man started off as a youth with no advantages and no money--just like every other Babylonian kid. Early on, he was ambitious and discovered the laws of success.

So, the king approaches Arkad and asks him, "Arkad, will you teach our citizens more about the way to acquire wealth that you have discovered?" Arkad says, "Well, Your Honor, it is learnable. What one has done, others can do. At your request, yes I will."

A fortnight later he finds himself in the Great Hall, in the Temple of Learning. Approximately 100 people are there; there's a spirited discussion going on. They all want to know what the richest man in Babylon has to share with them.

So he teaches them the seven cures for a weak wallet.

The first cure is, "Start thy purse to fattening". It's real simple. Take 10% of your income out, set it aside, and live on nine-tenths of your income.

Live on less than you are making to get your nest egg started. Many people wonder, "How can I live on nine-tenths, when I can't live on ten-tenths?" And Arkad's basic reply is, "It's not going to make much difference."

The second cure is, "Control they expenditures". Often when people get a raise their expenses go up, and they come out no better off. So, what you want to do is, of course, control your outgo.

Subordinate the passions and pleasures of the present moment against the future that you have designed, with discipline, foresight, and forethought.

As he puts it, "Realize thy most cherished desires by defending them from thy casual wishes." Have a budget, stay within it, make sure you get your dollar's worth out of everything that you invest in.

The third cure for a lean purse is, "Make thy gold to multiply". You started setting some aside, you're controlling your expenses, and now it's time to put your investment money to work. A person's wealth is not in their purse or the car they drive, it's in the income that they have coming in. So put your money to work.

Start small. You don't start off by putting all your money in investments that you don't know anything about.

With the magic of compounding interest, over time this money will increase.

This, then, Arkad says, is the third cure for a lean purse--to put each coin to laboring, that it may reproduce its kind and help bring a stream of wealth that shall flow constantly into thy purse.

The fourth cure for a lean purse is, "Guard thy treasures from loss". Arkad says, "Misfortune loves a shining mark. Make sure your principal is secure." Do not get sucked in to rosy-sounding deals. Get the advice of people who know.

The fifth cure is, "Make thy dwelling a profitable investment". He talks about how good it makes your heart feel to have your own place, in addition to the fact that it's cheaper, and when it's paid off you only have to pay the king--that is, the government--their taxes. You're living practically free. Many blessings come to a person who owns thy own home.

The sixth cure is, "Ensure a future income." Real estate is one of the best investments to make. This kind of thing requires a plan over time. We're talking about leveraging over time--five years, 10 years, 20 years, 30 years, and more, to become wealthy.

Also, make sure you have insurance to care for your family if you're taken away. Ensure a future income for them, and ensure a future income for yourself.

The seventh cure is, "Increase thy ability to earn". In other words, get more education, take on bigger tasks, make more money, develop more interest in your work.

With that you earn more, and therefore your 10% is more. You have the ability to do more all the way along, and leveraging over time is miraculous.

These, then, are the seven cures for a lean purse, as originally taught by Arkad in the Temple of Learning. Find out more in George S. Clayson's book, The Richest Man in Babylon!

About the Author:

Ted Ciuba, a leader in both the marketing & human potential fields, helps entrepreneurs, salespersons, & small-medium-sized businesses discover & adapt their mindset to success, increasing incomes, multiplying profits, reducing stress, liberating joy. Get the inside scoop on how you can benefit from his insights and practices: http://www.PayOnlyFromResults.com