The Richest Man in Babylon

The 7 steps to build wealth

1. Start saving.

Save 10% out of the earnings from your labor. To accomplish such a stream of savings, start disfavoring the gratifications of the daily life and appreciate the accomplishment of owing substantial belongings.

2. Control your expenses.

All people are burdened with more desires than they gratify. To limit that, study thoughtfully your accustomed habits of living and prioritize your expenses while at the same time respecting each coin you earn.

3. Make your savings multiply.

While accumulating savings is gratifying, locking them down brings only loss (Inflation!). Instead, find investment opportunities! This of course increases the risk, but may also increase the reward.

4. Protect your investment from loss.

The first principle of investment is security for your principal. The penalty of risk is probable loss. Study carefully before investing. The romantic desire to make wealth rapidly is misleading.

Each investment is considered a type of loan where you expect to get back the principal plus a profit/loss. To ensure at least the return of the principal, make sure the "borrower" is able to repay and has a good reputation on that (otherwise you just making him a present).

5. Own your dwelling.

It brings gladness to the heart when one eats from their own trees and leave in their own home. It builds confidence and will to care about the land. It also boosts the efforts behind any of the endeavors.

6. Ensure a future income.

Prepare for a suitable income in the days to come, for when you grow old. Make sure you can comfort and support your family even when you are no longer with them.

7. Increase your ability to earn.

Cultivate your own powers, study and become wiser, become more skillful. Act as to respect yourself! Your desires must be simple and definite. They defeat their own purpose should they be too many.

The Goddess of Good Luck

To attract good luck to yourself, it is necessary to take advantage of opportunities. Those of action on these opportunities are favored by the Goddess of Good Luck.

Lending money advices

• To borrowing and lending there is more than the passing of money from the hands of one to the hands of another.
• If you desire to help your friend, do so in a way that will not bring your friend's burdens to yourself.
• Types of loan securities/pledges:
  • based on property. The pawn can be land, jewels etc.
  • based on human effort. Has a steady income from labor and is trustworthy.
  • if none of the above, can friends of the borrower guarantee that is honorable?
• A borrower in the throes of great emotions is not a safe risk.
• Ask for what purpose the borrower will use the money.
• Ask what knowledge the borrower has for the business they are getting into.
• Ask for a security in case the borrower cannot repay.
• Always think that your well deserved savings are yours due to the sacrifices you have made.

Better a little caution than a great regret!