THE FIRST LAW OF GOLD (MONEY)

The Richest man In Babylon has become a modern inspirational classic and a must read book for all the wanna- be- millionaire. In his book, “The Richest man in Babylon” George S. Clason has demonstrated that wealth or money can be created and reading his book made me fall in love with a phrase which I would love to quote for you just to whet your appetite to continue reading this article.

From “The Richest Man in Babylon”, George said, ‘Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which the tree of wealth shall grow sooner you plant that seed the sooner shall the tree grow.”

Today, I have decided to write a post from the “Richest man in Babylon.” The post talks about the five laws of GOLD, the Gold in his book can be substituted with Money. Each week , I would post one law of Gold, and I  believe the lessons shared in his book would challenge you t take control of your financial life, just know that you become free in life only if you become financially free.

 Are you ready to learn and apply these Five laws of Gold from the Richest Man in Babylon? Am sure you are, because you eyes are still glued to reading this post. Anyway let’s zoom down to learning!

THE FIRST LAW OF GOLD.

·        Gold comes gladly and in increasing quantity to  any man who would put by not less than one tenths of his earnings to create an estate for his future and his family

George S. Clason believes that, if a man divides his earnings into ten equal part and keep one tenths of the earnings he can build for himself a house in the future irrespective of his current earning.

Many times when we receive our earnings from our labor we tend to spend all on ourselves and liabilities without thinking of the future, we ignorantly believe that because we labored for it we have to enjoy the fruit of our labor.We believe we have earned it, and it would be wise enough to spend all, as tomorrow would take care of its self when it comes.

However, if we put aside just one tenth of whatever earning we receive and then leave on the remaining ninth we could channel this small amount of money into an investment instrument. If we keep developing this attitude in our youthful age(20-25) when the demand on our earnings is not so much ,the one tenth we  save  would grow from a seed into a seedling  then finally becomes a tree of wealth in later years.

Money left in the hand of people well vest in the act of investing can grow exponentially over time because of the law of compounding. This means that if you develop the habit of leaving on the ninth of your salary whilst investing the remaining one tenth, then in 20 to 30 years time your money would have grown into a huge amount which can be used to start a building project to put a roof over your head. (If you want to know how this issue of how compounding work, drop me a comment and I would be glad to teach you the magic of compounding)

If this law really works, then why are so many working individuals who have past the age of 50 still leaving in a rented place? You have any clue I would love to hear your view.

What Next?

Have you been able to save one –tenth of your earnings? For how long have you been able to do that? Share with us the techniques you used. This then is the first law of Gold; follow me in my next post as I share with you the other four laws. Remember, it is not what you know but what you do with what you know that matters. Feel free to   share this article on facebook and other social networking sites. I would also love to hear your thoughts on the first law of Gold,drop me a comment and  let get talking. Thank you for reading.