1. Start to invest a portion of your
earnings: There are different options for a person to earn an income,
by doing a trading, by manufacturing, be serving as a professional. The
earnings from each of the vocation is a stream of gold from one has to divert a
portion to his own purse whether large or small depending on his ability. Take
an example of an egg merchant, if you select one of the basket and put into it
each morning ten eggs and take out from it each evening nine eggs, what will
eventually happen, over time it will be overflowing, because each day you put
one more egg than you take out. Same principle should be followed from your
earnings. So for every ten coins you place in your purse take out for use but
nine. Your purse would start to fatten at once and its increasing weight will
feel good in your hand and bring satisfaction to your soul.
2. Control your expenditure: How
can a man keep one-tenth of all he earns in his purse when what he earns is not
enough for his necessary expenses. Our necessary expenses will always grow to
equal our incomes unless we protest to the contrary. One should not confuse the
necessary expenses with one’s desire. Each one of us together with our good
families have more desires than our earnings can gratify. All men are burdened
with more desire than they can gratify. Just as weeds grow in the field
wherever the farmer leaves space for their roots, even desires grow so freely
in men whenever there is a possibility of their being gratified. Study
thoughtfully your accustomed habits of living. It is often found that certain
accepted expenses may be wise eliminated or reduced. Always demand value of
every penny spent. The purpose of a budget is to help your purse to fatten. It
is to assist you to have the necessities and, insofar as attainable your other
desired. It is to enable you to realize your most cherished desired by
depending them from your casual wishes. Like a bright light in a dark cave your
budget shows up the leaks from your purse and enable you to stop them and
control your expenditure for definite and gratifying purposes.
3. Make your investment multiply:
Money kept idle in bank account or your purse is gratifying to own and
satisfies miserly soul but earns nothing. The savings we make from our earnings
is just the start, once put to right use it shall build fortunes. A man’s
wealth is not in the money he keeps in his purse or bank account, it is in the
income he builds, the stream which he has created that continually flows into
his purse and keep it always bulging. Each one of us desire for an income that
continues to come whether your work or travel.
4. Protect/Guard your investment from loss:
A man with bank balance or money in purse is always tempted by opportunities
whereby it would seem he could make large sums by its investment in most
plausible projects. Often friends and relatives are eagerly entering such
investment and urge him to follow. The first sound principle of investment is
security for your principle. It is never wise to be lured by larger earnings
when you know your principle may be lost. Study carefully, before parting with
your money and ensure enough assurance that it may be safely reclaimed. Do not
get misled by your own romantic desires to make wealth rapidly. Before you
venture into an investment in any field acquaint yourself with the dangers
which may be there. Do not be too
confident of your own wisdom in entrusting your money to the possible pitfalls
of investments. It is always better to consult the wisdom of people experienced
in handling money for profit. Let their wisdom protect your money from unsafe
investment.
5. Make your own house a profitable
investment: If out of the nine parts of his earnings which is for
living and enjoying life, any part one can turn into a profitable investment
without impacting to his well-being, than so much faster will his treasures
grow. All of us do pay landlords liberal rentals for our dwelling and
compromise in our living. It is not beyond the ability of any well intentioned
individual to own a home. When you have your own house, it reduces your cost of
living, making available more income at disposal which can be used for
pleasures and the gratification of unfulfilled desires.
6. Insure a future income: Everybody’s
life proceeds from his childhood to his old age. This is the path of life and
no man may deviate from it unless Gods call him prematurely to the world
beyond. This makes it essential for 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 in case he be no longer with them to comfort and support
them. A man should plan certain
investments or provisions that may endure safely for many years and will also
be available when an eventuality happens. So, provide in advance for the needs
of your growing age and for the protection of our family.
7. Increase your ability to earn: As
a man perfect himself in his work, his ability to earn increases. More interest
in work, more concentration on task and more persistence in effort will lead to
higher rewards with reasonable promptness. Thus to cultivate your own powers a
man should study and become wiser, should become more skillful, get
self-respect and acquire self confidence in achieving his carefully considered
desires by getting rewarded without going to the master to request recognition.
The following things a man must
do if he respects himself:
a. He
must pay his debts with all the promptness within his power, not purchasing
that for which he is unable to pay.
b. He
must take care of his family and they may think and speak well of him.
c. He
must make a will of record that, in case of any eventuality, proper division of
his property be accomplished;
d. He
must have compassion upon those who are injured and smitten by misfortune and
aid them within reasonable limits. He must do deed of thoughtfulness to those
dear to him.
Reference & Source: The
beautiful book on Financial Wisdom by George S. Clason: “The Richest Man of Babylon”
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