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7 Cures for a lean purse | HealthMoneySuccess.com | Personal Development

7 Cures for a lean purse

11 Comments Posted in Personal Development

The Richest Man In Babylon

A classic book on wealth by George S.Clason. This book is written in a fascinating and informative story format that is easy to read and understand. The ideas are so simple that you will scratch your head and wonder why you did not apply the useful theories in your life before?

If you follow the ideas that are written in the book, you are guaranteed a road to happiness and prosperity. So here goes the cures of the lean purse!

  1. First Cure. Start the purse to fattening.

Do you spend all the money you received every month? People struggle in life and complained that life is hard because the boss is not paying them enough money to keep food on the table. So why are people not paying themselves first? No matter how much we earned, we cannot be rich without first knowing how to pay ourselves first. If you have a basket and everyday you put in 10 apples in the morning and remove 9 apples in the evening, what will happen to the basket over time? It will become overflowing with apples. So what will happen if you save 10 percent of your income no matter how much it is and what will happen to your bank account overtime? It will be overflowing with money!

2. Second Cure. Control the expenditures.

If you are thinking… if you are not even earning enough to feed yourself, what is there left to pay yourself? But we have seen people with different amount of income that ends up broke. So it is not the difference in income that is going to hinder you in paying yourself. You will need to differentiate between necessities and desires. If you buy everything that you desire and leave nothing to yourself, you can’t be rich. Instead of splurging, you may instead reward yourself with some of your desires that is still affordable within 90 percent and that is after spending on your necessitities. Warren Buffett one of the richest man in the world and Ingvar Kamprad owner of IKEA are some of the examples we can learn from. Buffett still live in his house that is bought in 1958 for $31500 and Ingvar Kamprad is still driving a 15 years old car and still flies economy and both man have a net worth that is in billions.

3.Third Cure.Make the gold multiply

To be rich, it is not enough to just save money. The amount we saved must be able to labour and produce more money. A man’s wealth is not in the money he have, it is the income he build that continually flows into his purse that keep it bulging. Investment like stocks, fix deposits or anything that allows your money to work will do the job. One important note, before jumping into any investment, gain an education first. I have lost some money due to lack of education before, don’t repeat the mistake.

4. Fourth Cure. Guard the treasure from loss.

Education, education and education. Learn and understand anything you want to invest before parting with your money.

Whenever you want to buy a 2nd hand car, what will you do? You will check out the car, test drive the car, check whether there is any welding to ensure that the car has not crashed before and asking your friend who is more of an expert then you before deciding to part with the money. In Singapore, whenever you buy a car, it is almost guaranteed to lose money and yet people will put in so much effort to research the car to determine whether it is worth the money. Yet when it comes to investment, people just throw money into it without doing a proper research. How many people are guilty to listening to your friend’s advice and just dumped money into stocks without research? Raise your hands up.

Warren Buffett’s Rules in Investing.

1. Never lose money.

2.Always remember rule number 1.

5. Fifth Cure. Own your own home.

Do rich people own their own home? Yes they do! So we will learn from the great role models. Maybe if we can own a few more house and start to collect rental and this will be one of the reliable income streams that we created.

6. Sixth Cure. Provide in advance for the needs of growing age and protection of the family.

We need to prepare for the time when will be old and for the needs of our children that are escalating with inflation. Keep money in plans that would provide money for the children’s education and insurance that you will know to take care of the family in any case of mishap.

7. Seventh Cure. Increase the ability to earn.

How much will a novice be paid compared to a master. If you think that you are not earning as much as the colleague beside you. Learn from them! Increase your capability and money will soon follow through. People will be rewarded if they are a master in their craft.

There is abundance in wealth and those who practice the stated rules are assured for success.

If you are interested in learning more about personal finance, I would greatly recommend this book. You can order it here

“Always bear in mind, your own resolution to succeed is more important than any one thing”

Abraham Lincoln

Cheers,
Vincent
Personal Development Blogger

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11 Responses to “7 Cures for a lean purse”

  1. Michael says:

    This is a really good article. I am going to bookmark it and really read it again everyday for a month. I will definitely tell you how I put this into practice in a month’s time. Great Job!

  2. Car Boy says:

    The best cures for a lean purse are here. Yet we have to have faith that these are the real deal, otherwise we’ll only know them — as in know them intellectually but not in our heart. And unless we know that these work (deep inside us), how will we put them to action and work them out? Food for thought: are our actions in line with the above 7 points?

  3. Sally says:

    I agree with everything except owning one’s own home. This is a commonly accepted financial principle based mostly on emotion and not so much on a person’s financial health.

    Your house would have to be appreciating in order for it to be a stronger investment than another, as well as you’d have to be able to sell it relatively quickly in order to not have to borrow from yourself (equity in your home).

    Think long before you own your home outright. It’s probably the only debt that’s worth having.

  4. Vincent says:

    Hi Elsa,

    I love this book too and I believe people should read it to gain the financial knowledge that is essential if we want to achieve financial freedom.

    Cheers
    Vincent
    Personal Development Blogger

  5. Elsa says:

    This part of the book also caught my attention the first time I read it, so I posted the same article on my blog 🙂

    BTW, nice blog!

  6. healthmoneysuccess.com says:

    Hi Taylor, thanks for the comment. Will be keeping up with my writing to contribute valuable information.

    Vincent

  7. Allen Taylor says:

    Nice writing. You are on my RSS reader now so I can read more from you down the road.

    Allen Taylor