7 Wealth Principles and 15 Best Quotes — The Richest Man In Babylon — George S. Clason
The Best Quotes From The Book:
- “The reason why we have never found measure of wealth. We never sought it.”
- “A part of all you earn is yours to keep”
- “Better a little caution than a great regret”
- “A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford. Pay yourself first.”
- “Gold is reserved for those who know its laws and abide by them.”
- “First must each of you start wisely to build a fortune of his own. Then wilt thou be competent, and only then, to teach these truths to others.”
- “Every gold piece you save is a slave to work for you. Every copper it earns is its child that also can earn for you.”
- “You first learned to live upon less than you could earn. Next you learned to seek advice from those who were competent through their own experiences to give it. And, lastly, you have learned to make gold work for you.”
- “For a man to wish to be rich is of little purpose. For a man to desire five pieces of gold is a tangible desire which he can press to fulfillment.”
- “Money is the medium by which earthly success is measured. Money makes possible the enjoyment of the best the earth affords.”
- “There is abundance for all.”
- “The more of wisdom we know, the more we may earn. That man who seeks to learn more of his craft shall be richly rewarded.”
- “a man’s wealth is not in the purse he carries. A fat purse quickly empties if there be no golden stream to refill it. Arkad”
- “Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow.”
- “yet he did possess one of the vital requirements to increase his earnings. Within him was a strong desire to earn more,”
The Seven Principles
1. Start Thy Purse to Fattening
This point is actually the main aspect of this book:
- To save a part of your income, at all times so that you can have money set aside for the future.
- The recommended amount is at least 10% of all income earned.
“For every ten coins, thou placest within thy purse take out for use but nine. Thy purse will start to fatten at once and its increasing weight will feel good in thy hand and bring satisfaction to their soul”.
2. Control Thy Expenditures
Learning to live within your means.
Where lifestyle inflation and luxury are not justified by great earning potential, one should learn to live within his means.
- The lower your expenses with the same income — the more wealth accumulates.
- The lower your expenses with a higher income — wealth accumulates even faster.
Of course there are some living expenses you can’t deny, and depending upon where you are living in the world — these vary.
For your lifestyle and habits, calculate an expenditure level that can cover all the basics plus some.
“What each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary. Confuse not the necessary expenses with thy desires”.
3. Make Thy Gold Multiply
- Income is one part of the equation.
- The income that you earn and save, should also be put to work and compounded over a long period of time.
- Making smart investments, using time and compounding to your advantage.
“The gold we may retain from our earnings is but the start. The earnings it will make shall build our fortunes. Learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you”.
4. Guard Thy Treasures From Loss
- When making investments, understand risk.
- Learn about risk so that you may guard your treasures from loss.
“The first sound principle of investment is security for thy principal. Is it wise to be intrigued by larger earnings when thy principal may be lost? I say not. The penalty of risk is a probable loss. Study carefully, before parting with thy treasure, each assurance that it may be safely reclaimed. Be not misled by thine own romantic desires to make wealth rapidly”.
5. Make of Thy Dwelling a Profitable Investment
“I recommend that every man own the roof that sheltered him and his. Nor is it beyond the ability of any well-intentioned man to own his home. To own his own domicile and to have it a place he is proud to care for, putteth confidence in his heart and greater effort behind all his endeavours”
6. Insure a Future Income
- Thinking about your future.
- From the money you keep and set aside, to the investments you make.
- Any decision made has to have some level of insurance for your ability to be comfortable in the far future.
“The life of every man proceedeth from his childhood to his old age. Therefore do I say that it behoves a man to make preparations for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them.”
7. Increase Thy Ability to Earn
Improve and master your craft, so that you may be in a better position to earn more money.
Learn new skills, take training, improve existing skills — make yourself more valuable in the marketplace.
“That man who seeks to learn more of his craft shall be richly rewarded. The more wisdom we know, the more we may earn. Cultivate thy own powers, to study and become wiser, to become more skilful, to so act as to respect thyself. Thereby shalt thou acquire confidence in thyself to achieve thy carefully considered desires”
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