The Seven Remedies for a Lean Purse
If you haven’t read “The Richest Man in Babylon” by George S. Clason then this post could change your life. Jim Rohn, one of the world’s greatest thought leaders and philosophers of all time, always told his listeners about this book. Jim passed away this year and he was a grand old man. He knew the truths Clason tells are priceless and timeless.
Part of the reason this book is phenomenal is because of the language he uses. It’s written as if it’s 2,000 years old. But because he uses this language he is able to explain what other authors struggle to explain in extraordinarily simple ways. Don’t you dare judge this book because of the language. That would be embarrassing.
I’m going to share with you the Remedies of a Lean Purse that could build a foundation to your life.
- For each ten coins I put in, to spend but nine. If you earn ten gold coins a week, put nine coins in your purse and place the tenth coin in a savings account. No matter your income, always save a tenth, and soon your lifestyle will adjust to your new income (nine tenths.) Your purse will fatten.
- Control Thy Expenditures. Each one of us have desires that keep our purse from fattening. In the book, the teacher is addressing a group of broke men (with lean purses.) He says that all the men are broke, yet some have much fatter purses than others. In other words, there are dentists, lawyers, secretaries, landscapers, and postal workers that all have different incomes, yet are all equally broke. His point: every man has more desires than his income can gratify. So stop buying the small stuff and spend within your budget. A budget defends a fat purse. Those who think budgets enslave you, are enslaved by their own spending. Never spend more than nine tenths of your income.
- Make Thy Gold Multiply. 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. The investments he advises become golden slaves, each laboring and earning more gold. This is the modern-day equivalent of compounding interest. If you save one tenth each week, and add it to principal in a stock or mutual fund, then each week you receive interest on the principal + one tenth. Over time it multiplies.
- Guard Thy Treasures from Loss. Prevent thy purse from being emptied once it has become well filled. Guard they treasure from loss by investing only where they principal is safe, where it may be reclaimed if desirable, and where thou will not fail to collect a fair rental. Consult with wise men. Secure the advice of men experience in the profitable handling of gold. Let their wisdom protect thy from unsafe investment.
- Make of Thy Dwelling a Profitable Investment. The fifth remedy for a lean purse: Own thy own home.
- Insure a Future Income. Provide in advance for the needs of thy growing age and the protection of thy family. Save for when your youth is gone and you still need a fat purse (still within your nine tenths of your income.) “Protection of thy Family” = life insurance. Case closed. You can’t afford not to have it.
- Increase Thy Ability to Earn. You must have a strong desire to earn more, a proper and commendable desire. The more wisdom we require, the more we earn. Pay your debts with promptness (if you have debt.) He must acquire his gold truthfully and respectfully. He must have compassion on those who are injured or smitten with misfortune. Acquire confidence so you may have much gold.
The book continues and only gets better. This book, only if read, will change the way you handle money. You’ll learn what mistakes other people are making. Read the book. It’s short and you can buy it used from Amazon.