Finally, the holidays are almost here—one of the most exciting times of the year, not just for kids but for the whole family. However, you suddenly find it hard to swallow after thinking of how you spent money this year.
“I worked hard and made much money. How come I don’t have enough savings? ” this question rings even more loudly when you see a text message of your sister talking about the new iPhone you promised some months ago.
These scenarios remind people of how their finances have been managed at different points in their lives. As such, the Richest Man in Babylon sought to expose the issues attached to derail in financial stability.
Asides from pointing out the issues, the solutions for the lack of financial freedom in many lives were proffered. Hence this article seeks to explore those solutions and give an overview of the Richest Man in Babylon by George Clason
Pay yourself first
The very first step route to financial freedom is to Pay yourself first. “But this is strange; why do I need to pay myself first when I am already getting paid at work?” According to George S Clason, author of the stellar book, once you get your salary to take out 10% for yourself that way, you can always earn money for yourself before slaving away for others.
In essence, if your salary is $2000 for the month, you should take out $200 for yourself. It helps you to stay stable in case of any emergencies that may arise.
Many movie enthusiasts attribute the success of the movie Wolf of Wall Street to the amazing acting performances of characters portrayed by Leonardo Di Caprio, Jonah Hill, Matthew McConaughey, and others. These actors are legends in their field, so too are Lebron James, Cristiano Ronaldo, Maria Sharapova, and Shelly-Ann Fraser-Pryce.
Many people would want to trade lives with any of them, but since we are not in a movie, they can only wish. Consequently, people envy these legend’s success to being lucky or having the right connections. Unfortunately, luck and connections are baseless without an action to necessitate success.
The goddess of luck favors men of Action
The book’s second principle in achieving financial freedom is the goddess of luck favors men of Action. You look at Drake and think to yourself, this guy is lucky, he got the right management and team backing him, but he was one of the few people in the world that took action to change the course of his life.
Hence, his success is so groundbreaking that people tag it as him being favored by the goddess of luck. Nothing good comes easy – you have to fight for what you want and where you want to be.
Interestingly, everyone has the same chance of succeeding in life, not just financially but also in different life spheres. However, through hard work and dedication, men of action unlock levels of opportunities, which eventually leads to a breakthrough.
The number of opportunities men of action try out makes them different from the procrastinators. Before you attribute the success of Angelina Jolie to pure luck, think about how many opportunities you have capitalized on.
Wealth is not a matter of Income
The third point that the author seeks to empower readers with is that Wealth is not a matter of Income. Let’s go back to the story in the introduction.
This guy is wondering why on earth did he promise his sister the phone in the first place; we will tell you why. He was making good money when he got his job, but his spending was as much as his salary even after getting a promotion. Consequently, his savings began to dwindle since the money fled his account the same way it came in. “But I make good money, so why am I broke?”
You know it is not a must you get the latest gadgets or the fanciest clothes. Spending on your budget is paramount in climbing the ladder of financial freedom. So, no matter who you are where from, everyone is subjected to the formula of Income – expenditure = Savings.
In 2003, a young rising football star knew the time to show the world his gifts had come. Cristiano Ronaldo faced Manchester United while at Sporting Lisbon in the UEFA Champions League match and boy oh boy, did he shine in that match.
After that, he got signed by the English club, and the rest they say is history. Fast forward 17 years later, and that young lad is one of the greatest players to ever grace the game. One thing was for sure he knew when the right time to play the best match of his life.
Act when the time is right
The book exemplifies this attitude in the fourth principle, which states, “Act when the time is right.” Sometimes you do not need a soothsayer or a wizard to tell you when to make that move, but doing your research and weighing the pros and cons could be the only thing separating you from financial freedom.
The Power of Passive Income
Finally, the fifth takeaway from the book is The Power of Passive Income. The beautiful thing about money is unlike us; it does not need to rest. Oh yes! After following the principle of paying yourself first, you would realize that your money has accumulated.
At this point, you need to think of ways of investing your money to yield more returns for you even when you are sleeping or at the gym or maybe enjoying a great weekend with the family. The new ideas or way you come up with to make more money for yourself is called passive Income.
Relying on one stream of income might be a little bit suffocating at times, especially during the holidays. If the guy at the beginning of the article had passive Income, he wouldn’t be worried about getting the new phone, amongst other things.
In conclusion, adhering to all of the principles above, according to the book, will surely set you on the path of financial stability. So far, which among these principles caught your attention the most?
