book summary: the richest man in babylon by george s. clason (part 4)
The Five Laws of Gold
The five laws of gold are as follows:
- Gold comes easily and in increasing quantity to the person who saves at least 1/10th of their earnings.
- Gold labors diligently and multiplies for the person who finds it profitable employment.
- Gold clings to the protection of the person who invests their gold with wise people.
- Gold slips away from the person who invests gold into purposes through which they are not familiar.
- Gold flees the person who tries to force it into impossible earnings.
The more money you accumulate, the more readily it comes to you and in increased quantities.
Money is a willing worker; let it work for you. Given the right opportunity, it will multiply and you’ll have more of it.
When you direct your money towards profitable investments, you position yourself to take advantage of the compounding interest. This helps you keep building the principal steadily as you earn interest on it.
If you’re cautious, money will cling to you; if you’re careless, money will flee you.
No one is born a money pro; it takes time to learn the ins and outs of personal finance management. Therefore, you must seek the advice of financial experts and implement it in your everyday life so that you’re able to invest your money wisely.
Wealth and inexperience can be a deadly combination. The one who trusts his own judgment without acquiring proper knowledge and/or heeding advice from wise advisors easily gets tempted to direct his money towards terrible investments, encountering a substantial loss sooner or later.
As you get further on your wealth journey, you’ll inevitably encounter get-rich-quick schemes and scams that’ll get you thrilled and excited. Don’t fall for them, otherwise, it’ll not take long for you to lose your hard-earned money.
You must make sure you never lose your principal or tie it up in unprofitable investments. Your priority must be to always protect the downside so that you don’t sabotage your financial security.
