How To Become Financially Stable: As Taught in the book The Richest Man In Babylon

Seven Cures For a Lean Purse

How To Become Financially Stable: As Taught in the book The Richest Man In Babylon

The book was written by George S. Clason in the year 1920s, this is the story of the richest man in Babylon named Arkad who was summoned by King Sargon to teach their people about financial literacy. Arkad was once working as a scribe when one day he thought of how one might accumulate wealth. He then sought advice from the money lender named Algamish. Fortunately, Algamish was eager enough to share this knowledge with the youngster as he is getting old.

In this story, Arkad also taught us that in order to fulfill the desires of our heart, it requires “time and study”, not only in the field of accumulating wealth but in all the things we do in order to survive and be competitive in the field we chose. We have lots of time to learn things and excuses are a no, no. In other words, let’s prepare ourselves before going to adventure or war because the opportunity is a haughty goddess who wastes no time with those who are unprepared. 

You know, good luck happens when opportunity and preparation meet together at the same time.
Arkad also taught us TO TRY, there’s no harm in trying. You will never know the outcome of your idea or dreams if you wouldn’t give it a try.

The first step that Arkad taught us here is the LAW OF AFFIRMATION AND VISUALIZATION before you start the 7 Cures of The Lean Purse.

"I advise that you take the wisdom of Algamish and say to yourselves, 'A part of all I earn is mine to keep.' Say it in the morning when you first arise. Say it at noon. Say it at night. Say it each hour of every day. Say it to yourself until the words stand out like letters of fire across the sky". 

Impress yourself with the idea. Fill yourself with the thought then take whatever portion seems wise.
This is a very important thing because we are programming our mind to do something, we need to impress our subconscious mind with a conviction that we will succeed in whatever we are planning to do or else we will fail. It’s like what Muhammad Ali said, “It’s the repetition of affirmations that leads to belief. Once that belief becomes a deep conviction, things begin to happen.”

Other things these books taught us are:

• Save

‘I found the road to wealth when I decided that a part of all I earned was mine to keep. And so will you.'- Algamish

• Invest

" 'You speak but half the truth' he retorted. '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. If you would become wealthy, then what you save must earn, and its children must earn, that all may help to give to you the abundance you crave.

• If you can't afford it, do not buy it. Spend only within your budget.

" '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. Do not buy from the clothes-maker and the sandal-maker more than you can pay out of the rest and still have enough for food and charity and penance to the Gods.

"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. The sooner you plant that seed the sooner shall the tree grows. And the more faithfully you nourish and water that tree with consistent savings, the sooner may you bask in contentment beneath its shade.'

• Delay Gratification

But often I was tempted, as my hoard began to grow, to spend it for some of the good things the merchants displayed, brought by camels and ships from the land of the Phoenicians. But I wisely refrained.

• Ask Advice Only From The Expert

He who takes advice about his savings from one who is inexperienced in such matters shall pay with his savings for .proving the falsity of their opinions.

Do not spend the profit rather put it in another basket. Invest, wait, and earn. Let money work for you.
'You do eat the children of your savings. Then how do you expect them to work for you? And how can they have children that will also work for you? First, get thee an army of golden slaves and then many a rich banquet may you enjoy without regret/ So saying he again went away.

Now, let’s proceed to THE 7 CURES FOR A LEAN PURSE.

Maybe some of us are struggling with how to able to meet all ends with just a little amount in our wallet that’s why we thought then how come can we make our lean purse become fat or in other words “expand our bank account balances”, have enough to buy our wants and needs and live a comfortable life.
Well, I really thanked the author of the book George S. Clason for sharing these principles with us. As the foreword in the book says, “That, indeed, is its purpose: to offer those who are ambitious for financial success an insight which will aid them to acquire money, to keep money and to make their surpluses earn more money.”

SEVEN CURES FOR A LEAN PURSE

1. Start thy purse to fattening.

For every ten coins thou placest within thy purse take out far 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.

SAVE! SAVE! SAVE!

Save a portion of your income, it’s up to you how much would you like to allocate in your savings as long as you are consistent in doing it every month, and never get tempted to spend it.
(You can also try the 52 Weeks Money Challenge)

2. Control thy expenditures.

"Budget then thy necessary expenses. Touch not the one-tenth that is fattening thy purse. Let this be thy great desire that is being fulfilled. Keep working with thy budget, and keep adjusting it to help thee. Make it thy first assistant in defending thy fattening purse."

Budgeting is the key. It’s very important that we track all our expenses so we will know where our money went. Through this, we will be able to prioritize our needs over our wants and be able to control our expenses. But always remember to never touch your savings no matter what happens, unless it’s a matter of life and death. (But though you can have separate savings as your emergency fund which you can use during unforeseen circumstances.)

3. Make thy gold multiply.

“To 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."
Invest. Let your money work for you.

4. Guard thy treasures against loss.

“Be not too confident of thine own wisdom in entrusting thy treasures to the possible pitfalls of investments. Better by far to consult the wisdom of those experienced in handling money for profit.”

“Guard thy treasure against loss by investing only where thy principal 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."

This means that only invest your money in trusted investment firms. Be aware of the PONZI scheme, those who promised to double your money are so too good to be true. As much as possible, invest first in knowledge before venturing into anything or seeking advice from an expert. As Arkad said, “The more wisdom we know, the more we may earn. That man who seeks to learn more of his craft shall be richly rewarded. If he is an artisan, he may seek to learn the methods and the tools of those most skillful in the same line.”

5. Make of thy dwelling a profitable investment.

“Own thy own home.”
Invest in real estate. You can save a lot from rental fees if you own your house. Aside from that, it is something that cannot be taken easily from you.

6. Insure a future income.

“Provide in advance for the needs of thy growing age and the protection of thy family."
Regret always come at the end of the story. If something happens to you TODAY, how prepared are you and your family? Talk to a financial adviser now to help you prepare for this scenario.

7. Increase thy ability to earn.

"Preceding accomplishment must be desire. Thy desires must be strong and definite.to cultivate thy own powers, to study and become wiser, to become more skillful, to so act as to respect thyself.”


Don’t stick with the basics. We need to have a strong specific desire to learn more and honed our skills, not only in the field of financial literacy and earning more money but in all aspect in our life. Learning is a continuous process, and with that, you shall acquire confidence in yourself to achieve your goals.