![]() ![]() “Budget your expenses so that you may have money to pay for your necessities, to pay for your enjoyments and to gratify your worthwhile desires without spending more than nine-tenths of your earnings.” I wrote about this on the guide to becoming smart about money. There have been many advice on frugality over the years but I think it will not solve the problem for the majority of us until we truly define what money is to us and also define the difference of need vs. Controlling our expenditures enable us to make good use of the money we have left over after we have paid ourselves. If we have paid ourselves first at least 10% of what we earn that leaves us with 90% or less of our income to live on. It can be as much more as you can afford. It should be not less than a tenth no matter how little you earn. “A part of all you earn is yours to keep. “If you have not acquired more than a bare existence in the years since we were youths, it is because you either have failed to learn the laws that govern the building of wealth, or else you do not observe them.” Before we start paying others or start spending the money we earn we need to pay ourselves first. Wealthy people pay themselves first and poor people do not. The difference between rich financially stable people versus poor broke people is knowing this first rule. You may call it the “ Me Tax” if you like. ![]() For every dollar that we earn, 10 cents should go to pay the person you see in the mirror every morning. The book recommends that we pay ourselves 10% of all that we earn. This is why we must be vigilant to pay ourselves first with every money we earn. They pay themselves first with our money. government takes taxes on our wages before we can get to it? The U.S. We can do that by paying ourselves first and foremost before we spend any of the money we have earned.ĭid you ever wonder why the U.S. We cannot accumulate wealth if we do not save what we earned. The rich man gave him a very valuable advice “I found the road to wealth,” he said, “When I decided that a part of all I earned was mine to keep. And so will you.” Although this is a very subtle message it is very powerful in accumulating wealth. Arkad was once a poor scribe who made a deal with a rich man to find out the secret to wealth in exchange for his work on a clay inscription. When Bansir and Kobbi seeked the advice of their very wealthy friend Arkad he tells them a story. One of the greatest lesson the book has taught is this first lesson. Pay Ourselves First ( “ Start thy purse to fattening.”) ![]() Below are lessons in this book that has helped me and many others become financially stable and wealthy and I believe these lessons will help all of us build a firm financial foundation on our way to becoming the richest person we can become. The lessons that Arkad provided for his friends was the premise of the book and they are lessons of wealth building habits that I believe every rich person had followed to accumulate their wealth. ![]() They went out to seek the advice of their childhood friend Arkad who in contrast had grown very rich and amassed fortunes. The two had become the best at their craft but yet had no money and were poor. The story sprang from the characters Bansir who was a chariot builder and Kobbi who was a musician. I first encountered this little book when I graduated college and was blown away by the simplicity of the story and by the tried-and-true lessons it presented for accumulating wealth. The book became known as The Richest Man in Babylon and has become a classic in financial literature. In 1926, George Samuel Clason published a series of pamphlets written in parables that was set in the ancient city of Babylon. ![]()
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