Pay Yourself First!
(“Start thy purse to fattening.”)
“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.”“A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford. “Pay yourself first”
Live Below Our Means!
(“Control thy expenditures”)
“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.”
The best advice to becoming wealthy is to keep expenditures down even when our earning power increases. Many of us have the habit of spending more as we earn more and it’s not unusual to see someone splurging and suddenly their expenses go up as they start earning more.
Make Your Money Work For You.
(“Make thy gold multiply”)
I believe this lesson is about investing our money and letting it work for us. I personally believe that each and every one of us should think about investing only after we have built our savings and an emergency fund.
” …put each coin to work so that it may reproduce its kind even as the flocks of the field and help bring to you more income, a stream of wealth that will flow constantly into your purse.”
If everything else is good and gravy, making our money work for us is a great way to accumulate wealth. There are many investment vehicles we can tackle but the best thing we should all be aware of is that we should never invest in anything we do not completely understand.
Insurance Protects Your Wealth.
(“Guard they treasures from loss.”)
Insurance helps safeguard our wealth by absorbing potential loss and mitigating our financial situation. There are many insurance we can buy and we should do our research on which one and how much we need.
Your Home Is Your Biggest Expense.
(“Make of thy dwelling a profitable investment”)
Our homes are potentially the biggest expense we have to tackle. Many of us do not own a home and instead rent one. There is absolutely nothing wrong with that but I believe the lesson we can learn from this one is that we should manage our biggest expense smartly.
Have A Retirement Plan.
(“Insure a future income.”)
We should have a retirement plan if we want to retire comfortably. We can do that by setting aside money to be invested for our retirement. There are many retirement investment plans out there. The younger we can start putting money away for our retirement the better. When we start putting money away for retirement early we take advantage of a magical thing called ‘compounding Interest.
Time can be our retirement’s greatest friend.
“Remember that money is of a prolific generating nature. Money can beget money, and its offspring can beget more.” – Benjamin Franklin
Invest In Yourself.
(“Increase thy ability to earn.”)
The best way we can increase our earning is by investing in ourselves. We can do that by continually learning and striving to develop ourselves. We are now in a very exciting time: the Information Age where knowledge is literally within our fingertips thanks to the Internet.
“Those eager to grasp opportunities for their betterment, do attract the interest of the goddess of fortune. She is ever anxious to help those who please her. And who is she pleased with? She is pleased with those who do – rather than those who merely talk and engage in wishful thinking. Action will lead you forth to the successes you desire.”
There are many things we can learn on our own and should strive to make ourselves well-rounded. Whether we learn to eat more healthy, enhance our current work skills, or learn to make more money, we must take the initiative to invest in ourselves. When we become smarter and wiser our ability to earn more also increases.
Track Your Wealth.
(Know where you are and where you are going.)
In order for us to know where we stand financially we need to face the whole truth of our current situation. We can do that by tracking our current wealth or lack thereof. This is a tough exercise but we must face the truth of how we earn and spend our money in order for us to know where we are going. There is a big difference between wealthy people and those who are not, wealthy people know their net worth while the poor do not pay particular attention nor care at all about tracking their assets and liabilities.
“You cannot manage what you do not measure.” – Bill Hewitt (co-founder of Hewlett Packard)
Find more of these here: http://www.enlight8.com/8-lessons-from-the-richest-man-in-babylon/