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Money Mangement Rules

Let your money make more money for you. Lessons from George S. Clason's book "The Richest Man in Babylon"

Photo credits: rawpixel on Unsplash

When a story is told, it stays with the reader for long. George S. Clason in his book ‘The Richest Man in Babylon’ has beautifully put together the rules of handling finances and personal wealth. Through storytelling, the author takes the reader on a journey of learning the golden rules of money management. These rules stand as true today as they were several years ago in the rich city of Babylon.

Are you ready to receive the golden rules? I bet you will find them quite familiar but sometimes it is important for someone to remind us what we already know. The three most important rules to manage your finances are:

1) To learn to live on less than what you earn;

2) To take wise advice in the matters of investment; and

3) To make your gold work for you.

No matter how less you earn, you can multiply your earnings only if you commit to starting. Most of the things in our life does not work just because we do not start and commit to it. I know it is easy to suggest rules but it is of no use without knowing how to apply them in our lives, so HYG!

To apply rule # 1, you need to make sure you keep aside a set amount every month. Pay yourself for working hard for “a part of all you earn is yours to keep”. It is quite amusing the way the author explains that even if you keep a part of what you earn for yourself, you will still be as short of money as you were before. Let’s be honest; those struggling with finances always find it hard to make ends meet. So, even if you do not keep any money aside, you will be as short of money as you will be if you do that, so why not give it a try.

For rule # 2, the author very interestingly explains the benefits of seeking wise advice stating, “when youth comes to age for advice he receives the wisdom of years” and yet cautions the seeker “advice is one thing that is freely given away, but watch that you take only what is worth having”. It is therefore important to seek advice but apply only what suits you and what you feel comfortable doing.

To apply rule # 3, now when you have accumulated a fair amount by paying yourself for your hard work, do not let that money sit idle. Invest it in something that will help you multiply it. It is necessary that you let your saved gold work for you and its children and its children’s children work for you.

In the book, the author also graciously shed light on other matters of importance such as opportunity, success, risk, and good luck. He stated that “desire to be lucky is universal” however good luck is not only for lucky people. Good luck is waiting for everyone; you just need to prepare yourself for the opportunity because opportunity waits for nobody and if you are prepared to avail the opportunity you are lucky and success is yours. So in a nutshell, success comes as a result of our own efforts and abilities. The message is clear “Men of action are favored by the goddess of good luck’

Good Luck!

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