We can learn the process of how to be the richest man. There are 7 points.
It’s simple and easy but may be difficult to do.
This is an old book firstly published in 1926 but not old as the Babylonia era. We can learn 7 cures to make money through the story in the Babylonia era meaning that the key points haven’t changed over time.
7 Cures to a lean purse
- Save your 10% income.
- Prioritize your desire.
- Put your money to work
- Guard your money.
- Make your home a profitable investment.
- Insure a future income.
- Increase your ability.
Make money for investment
The first 2 points are to make money for investment. It is to control our expenses within our income.
We need some automatic way like transfer 10% of our income to the saving account. We consider our income to be 90% of our income and we need to spend money within that income. Automatic is the key to beat our desires.
When we have a salary, we can put 10% of our income into the saving account or somewhere we can’t easily withdraw.
Invest money wisely
The next 3 points are about investment.
Investment has some risk but not like Gamble.
There is no business like No risk & Big return.
Know your allowable risk which is based on years to invest.
Please check the rule of 72.
If you can invest 10 years, you need earn 7.2% per year to double your money.
If you can invest 30 years, you need to earn 2.4% per year to double your money.
So if you could invest your monely for longer period, your risk would be smaller.
Invest yourself
And lost 2 points are about the investment for yourself.
You can buy books to learn something.
You can go to a school to learn somehting.
That’s investment for you to make money more.
This might be the most effecive investment and we can control the reult of this investment by ourselves.
Thank you for reading this.
I hope you will find your way to make money and invest your money.
