Why do some people get wealthy?

I have spent a number of years trying to understand how some people get really rich while others don't. What I have found along my travels is that most of the reasons can be found in the book 'The Richest man in Babylon". As a tribute to what I think is an intriguingly simple presentation of financial planning concepts, I will share one concept each day.

Today's lesson deals with the principal of paying yourself first (Saving 10% of your income) and investing wisely.

A part of all you earn is yours to keep

Arkad relates that he did as advised, saving a tenth of his income for a year, then investing that money with a brickmaker who went on a journey to buy jewels to trade. He related this to Algamish, who castigated Arkad for this foolishness. "Every fool must learn," he said, "But why trust the knowledge of a brickmaker about jewels? Would you go to the breadmaker to inquire about the stars?" Algamish then said, "He who takes advice about his savings from one who is inexperienced in such matters, will pay with his savings for proving the falsity of their opinions." Arkad then saved his money for another year, and he invested it with Agger the shield maker who used it to buy materials; every fourth month Agger paid Arkad rent for the use of these funds. Arkad spent these dividends on fine clothing and regularly scheduled feasts. Algamish comments that Arkad is "eating the children of his savings" by not investing them. Arkad adjusts his behavior and when he finally meets with Algamesh two years later, Algamish is so pleased with how Arkad has taken his lessons to heart, he hires Arkad as a manager of his estate in Nippur. By continuing to save and invest wisely, Arkad relates that he became the wealthy man that he is now.



In summary do not take advice from those who are not qualified. Invest your savings along with any income that you earn in the future from these savings back into more investments.

If you are interested in buying the book click on the link below for more details.

http://www.amazon.com/gp/product/0451205367?ie=UTF8&tag=lifevisions-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0451205367




This is general advice and does not take into consideration your personal circumstances.