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What are you thinking about right now?

What are you thinking about right now?

| March 02, 2018

Chances are, it involves money. Will I have enough to retire? Is my savings invested properly? What if the stock market drops? How much can I spend now and still be okay for retirement?

The answers to these questions require a deep understanding of certain financial principles, best learn through the eyes of Arkad, the wealthy’s subject of George Clason’s “The Richest Man in Babylon.”  1000 years ago in Babylon, Arkad was famed for his great wealth, and generosity with his advice. When approached by two of his contemporaries, who had accomplished nowhere near his success, he shared his formula in what he called “The 7 cures for a lean purse.” To illustrate the first cure, “Start thy purse to fattening,” Arkad refers to the egg merchant, asking what would eventually happen if one selects a basket and puts 10 eggs into it each morning and takes out nine eggs each evening?  The answer of course, is that over time, it will overflow demonstrating the importance of paying yourself first (and, spending less than you make!).  The idea of reducing one’s take-home pay by 10% is daunting at first, however with time, our lifestyle adapts to our income.  Saving regularly becomes a habit, and eventually we don’t even miss the change in our cash flow.

This first important step in a well-developed plan has no boundaries – it applies to all ages and income levels.