This is the final advice about how to make money, given to you from the classic book The Richest Man in Babylon. The character in the book carves five clay tablets with his plan of how he will secure his financial situation and begin to build wealth for himself.
He outlines his plan, lists his debtors, includes a separate segment for the debts which are a top priority, and then illustrates each experience of him paying the debtors, their reactions, and how he, and the opinions of his friends and family, change for the better.
3 Simple Steps to Prosperity
The first two tablets include the three parts of the financial plan which the character intends to fulfill.
1. Future Prosperity
“One-tenth of all I earn shall be set aside as my own to keep.”
“…the man who wisheth to achieve must have coin that he may keep to jingle in his purse, that he have in his heart love for his family and loyalty to his king.”
It’s so easy today to become overwhelmed by wants, needs, and debts owed, and most of us don’t save one penny because of all these excuses. According to this book, no matter what you need your money for, you must set aside 10% FIRST before dividing the rest, no matter how little that one-tenth might be.
“…seven-tenths of all I earn shall be used to provide a home, clothes to wear, and food to eat, with a bit extra to spend, that our lives be not lacking in pleasure and enjoyment.”
Put 70% of your income towards your home, daily needs, and a little extra for fun. BUT be sure not to spend more than this. The most difficult part of this plan for many people will be self-disciplined. But once you conquer this, you can do just about anything.
3. Paying Debts
“…each time the moon is full, two-tenths of all I have earned shall be divided honorably and fairly among those who have trusted me and to whom I am indebted. Thus in due time will all my indebtedness be surely paid.”
He creates a schedule for himself for how much and how often he will pay back each debtor. So by setting up a system, all emotion is taken out of the picture, and it becomes simply a matter of time before all debts are paid.
Tablet 5 recounts the character’s celebration for paying his last and final debt. His debtors, who had no faith in him when they saw him dig deeper and deeper into debt, now hold him in high regard and offer to lend him money whenever he needs it. His friends begin to respect him again. His wife begins to look at him “with a light in her eyes” and that alone gives him even more confidence in himself.