After many years of great prosperity while the king built the irrigation system and temples, came a time when the work was done and the laborers had nothing left to do. thus, businesses could not sell their products because people did not have enough gold to buy food.  So, the king wanted to know how it is possible that the people did not have enough gold to buy food.  Where did all the gold go that the king paid for the projects?  ‘All the gold is now with a few wealthy individuals’ explained the Chancellor. ‘But why could so few people get all the gold?’ asked the king.  ‘Because they know how. You cannot punish them for knowing how, or take from them something they earned’ answered the chancellor.  ‘But why can all people not learn how to accumulate gold?’ asked the king.   ‘But who will teach them?’, asked the chancellor.  And so, it happened that the king called on Arkad to teach the people in Babylon how to accumulate wealth.

Arkad taught them seven cures for a lean purse.  Here they are:

1. Start to fatten your purse
2. Control your expenditure
3. Multiply your gold
4. Guard your treasures from loss
5. Own your home
6. Insure a future income
7. Increase your ability to earn

Start to fatten your purse

The first lesson Arkad taught his students was to keep one coin for every 10 coins they earn.  In other words, never use more than 90% of what you earn.  10% they must keep for themselves.  They will soon get used to it and it will become easier and easier in time.

Control your expenditure

On the second day Arkad told his students that many asked how they can possibly keep a tenth for themselves if they do not earn enough to cover their necessary expenses.  He pointed out that they all had empty purses even though they do not all earn the same.  What people calls their ‘necessary expenses’ always grow to equal their income, unless they protest it.  It is important to distinguish between needs and desires.  People always have more desires than they can gratify, does not matter how rich they are.  They must study their habits.  They will find that there are many expenses that can be reduced or eliminated.  Start by writing down your expenses.  Identifying those you absolutely cannot go without.  Add those that is possibly within the 90% that can be spent.  Scratch out all those expenses that does not fit within the 90%.  These are desires that must go unsatisfied until they fit within the 90%.  Regret them not.  Keep 10% for yourself and make that your biggest desire.

Multiply your gold

On the third day Arkad explained that a man’s wealth is not the coins in his purse.  It is the investments he makes to keep the coins flowing into his purse.  The 10% you keep for yourself must be invested to earn more.  And of these earnings, you must also reinvest 10%. This way your earnings are multiplied.

Guard your treasures from loss 

Every owner of gold is tempted by opportunities to make large amounts of money.  Often family and friends also invest and urge him to follow.  Study and make sure you understand what you invest in and the risks involved.  Do not be overly confident in your own abilities. Get advice form wise men who have experience in handling money for profit.  Always protect your principle and invest only if the principle can be reclaimed if needed and if the return is adequate.

Own your home

The fifth day Arkad taught the men that they should own their home.  They should save up a reasonable portion of the money (deposit) to buy a home.  They must pay the money lender with the same regularity that they would otherwise pay the landlord so that they repay the loan in only a few years.  Also, grow your own herbs and fruit and change your home into a profitable investment.

Insure a future income

Every man must prepare for one day when he is too old to work.  He must also make sure his family is looked after when he is no longer there to comfort and support them. They must invest surplus money in suitable ways so that it is preserved for the future, but become available when the anticipated time arrives.

There are many ways to prepare for the future.  Don’t burry your treasures, because it may be stolen.  Rather invest it in property and land which can earn a rental income and one day be sold for a profit.  It can also be lent to the money lender which will pay it back with interest. Arkad also spoke of life insurance but said that the option was not available yet.

Increase your ability to earn 

A man must have the strong and definite desire to earn more and he must press his desire to fulfilment.  If desires are too many, too confusing or you do not have the training to accomplish it, it defeats the purpose.  Start small and increase your ability to earn from there.  Show interest in your work, concentrate and persist in your efforts. Improve your skills and learn more about your craft.  Life change.  Be on the forefront of these changes and don’t get left behind.

There are a few things you must do if you have self-respect.

• Pay off your debt and don’t buy anything you cannot afford
• Take care of your family so that they can think and speak well of you
• Draw up a will so that honourable division of your property is accomplished when you die
• Be compassionate to those that is less fortunate and aid them within reasonable limits.
• Always improve your skill and grow in confidence and wisdom
• Practice these truths and teach others.

References

George S. Clason, The Richest Man in Babylon, First Published in 1926.  Free eBook distributed by BizBuildersUSA.org