To attain wealth, there are three steps you must follow. These steps are based on universal and timeless principles that have been proven over and over again, stretching back thousands of years. They are as relevant today (if not more) than they were in Babylon – the ancient city, once the richest in the history of the world).
Here are the steps you must consistently follow:
1. Learn how to make money.
Acquire the skills you need to get a job or somehow receive an income. This is easy if you are able-bodied and have time available. No matter your skill level, there is always a need for labour. Once you have found employment, work hard, master your craft, and seek to always improve your ability to make money. Most people learn the skills required for their jobs within their first year of employment. After this, their skills remain stagnant. Don’t let that be you! Learn better ways to perform your work, and soon, as if by magic, you will be rewarded.
2. Learn how to keep money.
Pay yourself first! With all your earnings, no matter how big or small, resolve to put 10% away for yourself. Do this immediately and consistently. Do this before any other spending, wether it be groceries, bills, or luxuries. Be frugal and thrifty; learn how to live comfortably within the remaining 90% of your earnings.
If you have debts that need servicing, make a plan with your lender to pay them back in time using 20% of the 90% you have remaining. Learn to live comfortably within the remaining 70% of your earnings.
No matter what, be absolutely consistent with the habit of saving 10% for yourself – it is the most important step!
3. Learn how to use money.
Once you have saved 10% of your earnings for a year, you will have a large sum of money at your disposal. Money is easily squandered, so be cautious with this money!
Do not listen to the advice of friends and associates who do not have money themselves. They may be well-meaning, but they will not help you accomplish your financial goals. Seek only the advice of people who know how to make money grow – learn from them and begin looking for sound investment opportunities.
How I’m Applying this to my own life.
Since reading this book I whenever I receive payment. Since I don’t have many expenses nor indulge in many luxuries, I can afford to put almost 40% away. This will not always be the case, but thanks to compounding interest, time is on my side. I’m fortunate not to have any debt, and I make sure to keep it that way. I feel proud of myself for using self-discipline to ensure a better financial future for myself and my family. And I already feel wealthier.
Conclusion
One cannot follow these rules without improving his or her own financial situation. It is simple advice, but it does require self-discipline. In time, however, as saving 10% of your earnings becomes a habit and you adjust to your lifestyle, discipline will no longer be needed. Your savings and investments will begin to accrue compound interest, and your ability to make more money grows exponentially.
Learn to follow these steps and you, too, will soon become The Richest Man in Babylon – or in my case, Iqaluit. Hehe.