Seven Cures for an Empty Wallet

The first time I read ?The Richest Man in Babylon? my eyes were opened to something. True wisdom, even financial wisdom, weathers all storms. The series of stories revolve around a man Arkad, who was a man of great wealth, but he hadn?t inherited it. He had instead unlocked the secrets to obtaining great wealth. The King of Babylon eventually asked Arkad to educate others in these secrets, and here is a synopsis of his seven classes, The Cure for an Empty Wallet. 

Cure One: Start Fattening Your Wallet

On the first day the master instructed his students to begin filling their wallets. Put one in every ten dollars you make away. Pay yourself 10% of your income to use for future investments.

Cure Two: Control Your Spending

One of his students asked a question the next day that might be burning in your mind. It basically went, ?If I can barely pay my bills, how can I save 10%??

The master?s response was essentially to show the student that most of us spend what we have just because we have it. That is that our spending grows as our income grows, and we should learn to budget. Try to live on 7 of every 10 dollars you make. 

Cure Three: Make Your Money Multiply

Put each saved dollar to work that it may reproduce and bring you income, a constant stream of money that will flow into your wallet. 

Invest your money. There are a lot of options today ranging from risky to pretty safe. 

Cure 4:  Protect you Money from Loss

Guard your money from loss by investing only where the principle is safe, where your original investment may be reclaimed if needed, and where you will always receive a fair return. Consult with wise men. Secure the advice of those experienced in wise investing. Let their wisdom protect you from unsafe investments. 

Cure 5: Make Your Home a Sound Investment

Own your own home! 

I personally can see the value of both owning and renting a home. If you rent, you are able to pursue opportunities in any area more easily. You also have fixed expenses. 

If you own your home, you are at least banking some of your expense into equity, but don?t be fooled into thinking that just because your home appreciates in value that you?ve made money. A 30 year loan will cost you double the principle in principle and interest. You?ll also pay insurance and taxes. So even if your home doubles in value, you?ve still lost money on it as an investment unless you sold it relatively quickly. 

You have to live somewhere though. So if you plan on being in the same area, it is generally best to own. 

Cure 6: Insure a Future Income

Plan for your needs in your old age and to protect your family. 

This could be everything from investments to life insurance. I recommend 5 times or more in your annual salary in life insurance.

Cure 7: Increase Your Ability to Earn

Invest in yourself, to study and become wiser, to become more skillful, so that you can act in ways that respect yourself. 

Enrich yourself. Read for knowledge and fun. Learn or enhance skills that help you in your job. 

I highly recommend that everyone read the entirety of The Richest Man in Babylon by George S. Clason originally published in 1926 as a series of articles. There is much we can still learn from Arkad, The Richest Man In Babylon.