Financial Literacy: Thriftiness and Saving Money

Jul 23, 2017 News

---

Thriftiness and saving money to build wealth
The secret to personal financial success is believing and practising this axiom: “A part of all you earn is yours to keep.” So wrote George Clason in his so-called “Babylonian parables” back in the 1920s and published in his classic book, “The Richest Man in Babylon.”
This book was acclaimed, “The greatest of all inspirational works on the subject of thrift and financial planning.”
The sole purpose of this financial literacy article is to teach you the most effective method of accumulating wealth as well as to introduce you to the financial secrets of the ancient Babylonians and how they successfully handled their finances. In any event, “To bring your ambitions and desires to fulfilment, you must be successful with money. Use the financial principles made clear in the pages that follow.
“Let them guide you away from the stringency of a lean purse to that fuller, happier life a full purse makes possible.” For this purpose, I am introducing you to the richest man there was in Babylon, an ancient mentor of mine called Arkad.
Arkad and the city of Babylon
As the story goes, back in ancient Babylon there once lived a very rich man named Arkad. He was famed, everywhere for his great wealth. Despite his generosity to his family, friends and charities, his wealth continued to grow. However, Arkad was once a menial labourer with a determination and perseverance to improve his station in life until he became the richest man in Babylon. Because of his experiences, what followed were several lessons that addressed topics such as avoiding debt, seeking out mentors and protecting assets.
After many years of prosperity, Babylon finds itself suffering from an economic downturn. A selected few citizens have acquired all the wealth leaving the majority of townspeople in poverty. Good King, Sargon calls for Arkad to be brought before him to discuss the remedies for this situation. So, several of the city’s council members and business men were selected to meet with Arkad where he puts forth his remedies in the form of financial lessons one being “seven cures for a lean purse.” This lesson challenged the council members to discuss his cures amongst themselves to determine if Arkad speaks falsely.
Arkad’s seven cures for a lean purse
Sit back, relax, and with your pencil in hand, ponder Arkad’s advice to the council members of Babylon. Back in Arkad’s days, copper and gold coins were used as the medium of exchange. For emphasis, Arkad’s seven cures listed below are written in its original ancient text. It takes a bit of effort to understand, but please try:
· The First Cure – Start thy purse to fattening: “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 thy soul.”
· The Second Cure – Control thy expenditures: “Budget thy expenses that thou mayest have coins to pay for thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings.”
· The Third Cure – Make thy gold multiply: “Put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse.”
· The Fourth Cure – Guard thy treasures from loss: “Guard thy treasure from loss only where thy principle is safe, where it may be reclaimed if desirable, and where thou will not fail to collect a fair rental. Consult with wise men. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments.”
· The Fifth Cure – Make of thy dwelling a profitable investment: “Own thy own home.”
· The Sixth Cure – Insure a future income: “Provide in advance for the needs of thy growing age and the protection of thy family.”
· The Seventh Cure – Increase thy ability to earn: “He must pay his debts with all the promptness within his power, not purchasing that for which he is unable to pay. He must take care of his family that they may think and speak of him well. He must make a will of record that, in case the Gods call him, proper and honourable division of his property be accomplished. He must have compassion upon those who are injured and smitten by misfortune and aid them within reasonable limits. He must do deeds of thoughtfulness to those dear to him. Cultivate thy own powers, to study and become wiser, to become more skilful, to so act as to respect thyself.”
These are Arkad’s seven cures for a lean purse. After the discussion with the council members he gave the following instructions, “Go thou forth and practise these truths that thou mayest prosper and grow wealthy, as is thy right. Go thou forth and teach these truths that every honourable subject of his majesty may also share liberally in the ample wealth of our beloved city.”
In conclusion, remember this, where the determination is, the way can be found. In this regard, “the foundational building block for those desiring to increase their wealth is that a part of everything you earn is yours to keep.”
This means that you should pay yourself at least one-tenth of all you earn before paying your debts. For our prosperity as a nation, just like ancient Babylon, depends upon the financial prosperity of each of us as individuals.
Next week we will discuss the seven principles of the millionaire next door. Thanks for all your comments and support. As usual, please send your comments or questions to [email protected]

---

---