In the third chapter of The Richest Man in Babylon the book lists and details "seven cures for a lean purse." Today, we'll cover cure #3 which is:
Make thy gold multiply.
This is the cure that focuses on investing and, in particular, making sure the money you earn on your investments starts earning money itself. Here's what the book has to say:
I tell you, my students, a man's wealth is not in the coins he carries in his purse; it is in the income he buildeth, the golden stream that continually floweth into his purse and keepeth it always bulging. That is what every man desireth. That is what thou, each one of thee desireth; an income that continueth to come whether thou work or travel.
In other words, work to make your money a renewable source -- something that itself generates a good income.
The book continues:
Behold, from my humble earnings I had begotton a hoard of golden slaves, each laboring and earning more gold. As they labored for me, so their children also labored and their children's children until great was the income from their combined efforts.
Quite simply: save and invest your money (from the portion of your salary you keep for yourself) and then let time and the power of compounding take over to make you rich.
Comments