book summary: the richest man in babylon by george s. clason (part 3)
Seven Cures for a Lean Purse
Here are the seven Babylonian principles for wealth management you must start practicing:
- Begin to fatten your purse
- Control your expenses
- Grow your savings
- Guard your wealth against losses
- Become a homeowner
- Save money for the future
- Increase your revenue streams
The more you set aside, the more momentum you’ll build, and the more your purse i.e. your bank account will fatten.
You must learn to live below your means instead of elevating your lifestyle to meet your income. And the best and most effective strategy to do this is to create a monthly written budget and stick to it no matter what.
You must take the 10% that you’ve been saving and invest it so that your hard-earned dollars start working you and reproduce more of their kind.
The first sound principle of investment is security for your principal, and so, you must avoid making risky investments that could lead to loss.
Do not get tempted by hollow opportunities that have no proven record of financial success.
Consult with wise people who are experienced in handling money for profit, and seek their guidance. Let their teachings protect your savings from any kind of unsafe investments.
You must invest in a home that you can care for, so it will increase in value as time passes. When you own the home that shelters you, you’re reducing your cost of living while making a solid investment that will benefit you and your family for years.
Picture your future and consider how you want to live when you’re older and choose savings and investment plans that will endure safely for many years and yield a steady income when you’re no longer able to work.
If you want to increase your income, you must build your knowledge and wisdom reserves. A person who seeks to develop themself and learn more of their craft shall be richly rewarded.
When you build your skills, your character, your self-esteem, self-worth, and confidence, and consistently bring value to others, you naturally progress forward in life.
How to Woo the Goddess of Good Luck
When people talk about luck, they usually refer to chance. When some random and non-influenceable event happens out of the blue such as winning an expensive vacation trip or being struck by lightning, it’s chance, not luck.
Luck is not an arbitrary event, but a predictable outcome. It’s all about making the most of an opportunity when it knocks at your door.
To create our own good luck, we must be proactive and make sound decisions.
The number one thing that hinders our progress is procrastination. This is the sole reason why only a handful of people capitalize on opportunities that come their way.
To attract good luck to ourselves, it’s crucial to overcome indecision and procrastination and take advantage of opportunities as soon as they come our way. If you want to woo the goddess of Good Luck and win her favor, you must become a person of action.