Sometimes we all wonder why some people keep getting poorer even though they have a high income. I learnt much in the book "The Richest Man in Babylon". When you are lacking financial literacy on how money works, you will work very hard and still have little to show for it at the end of the day.
I will not be able to explain all what I learnt in the book, I will just buttress on a certain point which ppl do miss quite often in income generation. The author said and I quote, .. "A PART OF ALL I EARNED WAS MINE TO KEEP". KEEP A ONE TENTH OF ALL YOU EARN". What does that mean?. It means that ppl often spend money on other necessary expenses without caring to save money for themselves. Let me give an illustration for more clarity. Assuming Mr A is earning about $100 a month, Mr A will have to pay for foods, housing, clothing and other necessities of life. That been said, his salary may not actually be sufficient to cater for his monthly expenses, but yet the author emphasized on saving at minimum a ten percent of the income for yourself. That is, while Mr K pays out a part of money to the cloth seller in respect of clothing, to the landlord for rents etc, what about the money he pay himself too for working the whole month. This in form of savings, quite funny right?
Now the author also emphasized on the importance of investing in the money you saved for yourself, you just don't save to buy a liability which doesn't bring any monetary value or compensation to you. Savings and investing no doubt is one of the surest way to acquiring wealth.
I enjoin everyone to get a copy of the book and read it for better understanding. I jotted down some quotes which I will like to share with you..
"Opportunity is a haughty goddess who wastes no time with those who are unprepared." When you discover. an opportunity to make money, don't sleep on it, grab it immediately, that might just be your opportunity. If you are doubtful, read the story of the man who founded Guarantee Trust (GT) Bank, Nigeria.
"Wealth grows wherever men exert energy" You can't be lazy and expect wealth to come.
"Wealth is power, with wealth many things are possible". Forget it, A poor man is not recognized as a powerful man in the society.
" A man's wealth is not in the coins he carries in his purse, it is the income he buildeth, the golden stream that continually floweth into his purse and keepeth it always bulging".
I highlighted the 7 cures for a Lean purse. Note that the author usage of Gold necessarily means Money. The seven cures include;
1. Start the purse to fattening
2. Control thy expenditures: don't let ur unnecessary expenditures and desires be more than ur income.
3. Make thy gold multiply by investing in profitable business.
4. Guard thy treasures from loss
5. Make of the dwelling a profitable investment.
6. Insure a future income.
7. Increase thy ability to earn.
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       THE FIVE LAWS OF GOLD.
1. Gold cometh gladly and in increasing quantity to any man who will put by not less than one tenth of his earnings to create an estate for his future and that of his family.
2. Gold laboureth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
4. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
5. Gold flees the man who would force it to impossible earnings or who follow the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
"Without wisdom, gold is quickly lost by those who have it, but with wisdom, gold can be secured by those who have it not.
Please try to read the book and broaden your horizons. The book is " The Richest Man in Babylon"
Pls feel free to use the comment box down to share your opinions with me, this will motivate me further because nobody is an island of knowledge. Thanks for reading
Nice piece