About Me

I am A Chartered Certified Accountant who does a bit of gardening.
The Pictures of the flowering and non-flowering plants, fruits, vegetables, culinary & aromatic herbs
in this blog are of my garden.
Most of my garden collections are driven by the Fs: They either Flower, have a Fragrance, provide Flavor, bring Fruit, Food or are air Freshening.

Thursday, 2 January 2014

7 ways to improve your financial situation

I prefer reading books that have principles that I can apply in my life for personal development. Coming across such books is far between and having time to read them is another matter all together. When I get time to read a good book, I tend too write the key principles that I think are worth passing on to others or making reference to at a later stage.

Some years back, I read the book ‘The Richest Man in Babylon’ by George Samuel Clason which dispenses financial advice through a collection of parables set in ancient Babylon. This financial self help book is a good read and provides practical advise that would guide one to good and time tested their financial management principles. The principles I gleaned from this book could be summarized as:
  • Save at least 10% of your income
  • Have a Budget to spent not more than 90% of your income
  • Have diversified revenue streams
  • Invest savings to earn interest
  • Own a home
  • Have a retirement plan & Insurance
  • Ensure continuous professional or skills development


Many of us are good-to-go with the above outline. Others need more flesh. For the latter, below are excerpts from the book that give insight on how to go about each of the principles outlined above. The language used in the book may sound 'ancient' but the principles transcend time, culture, race, religion, gender or nationality.

In this book, George Clason maintains that money is plentiful for those who understand the simple rules of its acquisition. Below are the Rules of Acquisition:

1) Start thy purse to fattening (SAVE)

A part of all you earn is yours to keep. Let it not be less than one-tenth of your earnings. For every ten coins thou placest within thy purse, take out for use but nine. Thy purse will start to fatten at once and its increasing weight will feel good in thy hand & bring satisfaction to thy soul. For each ten coins I put in to spend but nine

2) Control thy expenditures (BUDGET)

Budget thy expenditures that thou mayest have coins to pay for thy necessities, to pay for thy enjoyments & to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings

3) Make thy gold multiply (DIVERSIFY REVENUE STREAMS)

To put each coin to be 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

4) Guard thy treasures from loss (INVEST)

Guard thy treasure from 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 (interest). 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

5) Make thy dwelling a profitable investment (OWN AN HOME)

Own thy own home. If you pay rent to a landlord all your life, at the end of your life you'll have nothing to show for it. If you can instead pay a mortgage on a house, at the end of your life you'll have a house to show for it. "Own thy own home." This is very important for those that aim high in reality

6) Insure a future income (RETIREMENT PLANNING & INSURANCE)

It behooves a man to make preparation for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them. Provide in advance for the needs of thy growing age and the protection of the family

7) Increase thy ability to earn (CONTINOUS PROFESSIONAL/SKILLS DEVELOPMENT)

Preceding accomplishment must be desire. Thy desire must be strong and definite. A man must set concrete goals and work to achieve them. These goals should not only be to advance in one's career or one's position, but also to become wiser and more knowledgeable

Set definite Goals

A man must:
  • Pay his debts with all the promptness within his power, not purchasing that for which he is unable to pay
  • Take care of his family that they may think & speak well of him
  • Make a will of record that incase he dies, proper & honorable division of his property be accomplished
  • Have compassion upon those who are injured & smitten by misfortune & aid them within reasonable limits
  • Do deeds of thoughtfulness to those dear to him
  • Cultivate thy own powers to study and become wiser, to become more skillful, to so act as to respect thyself
  • Not procrastinate! Seize the opportunities that come thy way

The five laws of Gold

  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 & that of his family
  2. Gold laboreth diligently & contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field
  3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling
  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
  5. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters & schemers or who trusts it to his own inexperience & romantic desires in investment

In conclusion

  • Better a little caution than a great regret
  • Ensure adequate insurance, savings accounts, dependable investments, guard against unprotected tragedies
  • Where determination is, the way can be found
  • Work is the key to golden shekels
If you are interested to know your current personal financial status, you could have a go at the Personal Financial Fitness Quiz
Is it true that these 'ancient' principles if applied in our modern day will promote sustainable wealth? Have you tried any of the principles? Would you share your experience? What other principle(s) would you add to the list?