George S. Clayton writes in “The Richest Man in Babylon“ about seven cures for a lean purse. The setting for this book is in ancient time, yet his practical advice is very relevant to today times. The concepts presented are very simplistic in nature, but once applied these principles could help you to acquire wealth. It will be necessary to apply consistent and persistent actions to achieve success. The inner actions of developing your mind are even more important than the outer actions. The seven cures below takes discipline to control your mindset because a breakdown in your mindset might lead to a breakdown in one of the stages.
The 7 cures for a lean purse are listed below:
1. Start saving money now
Pay your immediately living expenses with 90% of your income and save the other10% of your income.
2. Control what you spend
You must control the money that you spend on a daily and monthly basis. Your results will be drastically different if you constantly spend your money on a want instead of a need. You must figure out your needs and minimize your wants to control your expenses.
3. Make investments with your savings
Your purse is fattening so now you must invest it. The true way to build wealth is by finding ways to invest your savings. You must find profitable investment that will give you a great return on your money. If you fail in your first attempt to build wealth, then start over at step 1 again. The point of failing is learning from it and continues to move towards your goals.
4. Protect your Return on Investment
You must weigh the risks versus the rewards of every possible investment. You must only seek advice from people who specializes in investment strategy. You must make sure that you select the right person, interview and researched their credential. Your due diligence at all stages before investing in a risky enterprise that may eradicate your nest egg.
5. Invest in property
This cure is self explanatory because everyone always dreams about owning his or her property. You would be wasting money if you are renting instead of buying your home.
6. Insure a future income
Strategic planning about your future when you have a growing surplus will help you keep your wealth. Your investments must be enough to take care of your family during your retirement years.
7. Invest in knowledge
The best way to keep your newly acquired wealth is to always invest in acquiring new skill sets. Perfecting your craft with a solid commitment to your goals will be greatly rewarded. What would you do with your last $200.00 if you had a home based internet business?
The seven cures to a lean purse described above are a simple plan that may be followed in the Babylon of yesteryear as well as the World of today. Saving 10% of your income on a consistent basis is only the beginning. The advice offered by “The Richest Man in Babylon” may be used by everyone now or in the future.
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