The Five Laws of Gold
I love to read and recently finished the self-help classic 'The Richest Man in Babylon." The laws woven into the tale are ones I wish had been taken to heart in my youth. My mother tried to instill me with these same lessons, and they are as accurate today as 8,000s ago in Babylon. In the story, Arkad (the Richest Man in Babylon) sends his son into the world with a bag of gold and tablets inscribed with the five laws to make his way in the world. Arkad informs his son (Nosamir) that if he cannot demonstrate his ability to build wealth, the most valued estate in Babylon would be willed to the temples. Nosamir goes into the world quickly, learning that gold without knowledge will swiftly leave one's pocket.
The First Law of Gold
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.
The first law is simple. Save at least 10% of your income. Put this aside before you pay for anything else. It is non-negotiable. If you wait to allocate 10% to savings first, it will feel harder to prioritize. Make this easy by having a separate account with the funds transferred automatically. Save more if you can, but 10% is the minimum. One quote from the book that I have turned into a mantra is, "A part of all you earn is yours to keep." The other passage that rings true is The Five Laws of Gold.
The Second Law of Gold
Gold laborers diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks in the field.
Another essential but straightforward rule in growing wealth is to invest in revenue-generating assets. Rather than living a lavish lifestyle today, invest in your future by acquiring assets that produce passive income. They don't advocate that you don't enjoy your life. Be moderate and look at what is a necessity and what is a need.
The Third Law of Gold
Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
A penny saved is a penny earned. Be wise with your finances. The ability to live your dream life starts when you become financially free.
The Fourth Law of Gold
Gold snippets 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.
If you are going to invest, do it wisely. Day trading for amateurs is legal online gambling. Don't buy stocks, real estate, or invest in a new tech startup without significant research.
The Fifth Law of Gold
Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
If it's too good to be true, it probably is. Don't let promises of windfall returns obstruct your better judgment. Slow and steady wins the race. The majority of the time, someone takes a shortcut in acquiring wealth; it has the opposite effect.
Nosamir still had the knowledge inscribed on the tablets. He used that to gradually build his wealth through hard work, a moderate lifestyle, and wise investing. He returned with many times the gold his father had entrusted him a decade prior.
