How to Grow Personal and Business Finance: Lessons from the Richest Man in Babylon

Bansir, the chariot builder of Babylon, was thoroughly discouraged until he met Arkad, a wealthy man in Babylon. The advice frequently exchanged in their teacher-student kind of relationship would later evolve to become the widely known book by George S. Clason: The Richest Man in Babylon. One could hardly pass the corridor of business without hearing the title of this book. However, for those who weren't too familiar, The Richest Man in Babylon is a classic personal finance book written by George S. Clason. It was first published in 1926 and has since been republished several times. The book uses parables set in ancient Babylon to teach financial principles such as the importance of saving and investing, the power of compound interest, and the dangers of debt. Despite the fact that this novel was published long ago, that are very important for any business owner or finance-conscious person to thrive in a world of debit notifications. there are five laws Here are the five rules: Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment. Warren Buffett , "If you don’t find a way to make money while you sleep, you will work until you die." In order not to fall into the trap of those that lived through the industrial revolution, here is an explanation of the five laws of Gold which you can put into practice. said #1 Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family. This law can easily be translated into saving 10% of your income. As little as it may sound, this rule works best as a compound interest principle. In finance, there are many rules that guide you into being a financially-free person including the rule of and spending less than you earn; however, following Arkad's advice, the best way to build your retirement fund is by saving nothing less than 20% of your income right now. Once you follow this principle, you become a farmer with a long-term plan. 50-30-20 #2 Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. Remember the Warren Buffett quote? Well, here it is in action. This second law can be translated as: Let your money work for you. Money has a way of multiplying itself when it works and in contemporary times- when it’s invested. A lot of people have been cajoled into an investment that they lack good knowledge about. As an investor, you must have done some psychometric tests or spoken with a financial advisor to know what type of investor you are due to the flaccid nature of the investment. It is important to know the risk level of the type of investment you might be interested in before starting. #3 Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling. This law is a caution to the second law and it can be easily translated to be: Be wise with your investment, follow the advice of experts. It is normal to feel pumped when you hear an idea that can get you more return in your financial portfolio; however, it is essential that you know it is foolish to suddenly put your savings into an investment you don't have an idea about. This law warns against this act and sums it up by following the advice of wise men in handling investments. #4 Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep. In explaining this Law, Clason noted that: "Therefore, the inexperienced owner of gold who trusts to his judgment and invests it in a business or purposes with which he is not familiar, too often finds his judgment imperfect, and pays with his treasures for his inexperience." This law can easily be translated to: Money helps those who learn about investment. Most investment mistakes are avoidable only if the investors have studied the investment. In a book by Arese Ugwu titled Smart Money Woman, the character Zuri had to meet with an expert, Omosede, who then advised Zuri on investment. Don't be confused with fugues, inquire what the investment is about before pouring your "gold" into it. #5 Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment. This law frowns on any form of get-rich-quick schemes. Hence, it can be easily translated to be: Money and get-rich-quick schemes are enemies. When you have money, you will get many beautiful investment offers. Some will promise you a fanciful Return on Investment (ROI) but it takes self-discipline and contentment not to fall into the trap. A case like this was reported in 2022 of , who was arrested on a fraudulent account. On investigation, it was revealed that he promised a 60% ROI monthly with capital granted. Dominic Joshua Ngene The fifth law serves as a warning to anyone ready to get into the investment world. Above all, in Oscar Auliq-Ice's words, "It's important to know what you want to accomplish with your investments before you invest." Hence, the road to building wealth is slow but compounding. Yet, it pays to be principled lest one falls prey to numerous Ponzi schemes.