Learn something new every day (or week) - Book Review: Richest Man in Babylon (Facebook post converted to Blogger)

Well I figured that I'd start taking notes on the stuff I'm reading so one day when I feel dumb, I can come back to what I've learned throughout the years.

So here goes for this posting

What Earl's Reading:
The Richest Man in Babylon, George S. Clason

Quote that got my attention:
"A Part of All you Earn is yours to keep."

My thoughts on this:
Well it's been said to me by more than one of my mentors, and countless books I've read to set aside 10% of my earnings to work for me / save for the future.

After reading Rich Dad Poor Dad, I started my own business, and actually put ALL of the earnings back into the business for the first while. As per the cash flow method of buying assets - I moved into making my businesses grow by investing everything back into them.

Now, my mentors are telling me to set aside that same 10% but now for different reasons. Perhaps it's to do with "the secret" and the law of attraction. Perhaps it's why I've just been so lucky throughout the years. One of them tells me that it's not just the principle of setting something aside, but that it goes back to the biblical days, and that good things just seem to happen when you set aside that much - so after the mental beating from multiple sources, I suppose I'll set aside 10% into a liquid, but much "safer" account not in the FX/Precious Metal/Real Estate Markets and see where things go from there.

The 7 cures for a lean purse was another interesting section of the book:

1) Start thy purse to fattening
2) Control thy expenditures
3) Make thy gold multiply
4) Guard thy treasures from loss
5) Make of thy dwelling a profitable investment
6) Insure a future income
7) Increase thy ability to earn

let's break these down and look a little deeper.

1) Start thy purse to fattening

This is where the whole save that 10% came into existance. I'll get started on this right away again (although it sucks not getting to watch this grow in my investment accounts...)

I'm also setting up ways to make sure I fatten my purse as well as my local charity's purses at the same time, by setting aside funds to donate in a growth account so I'm able to watch my original donation keep on growing. Who says a single donation should only serve as a single influx of income?

2) Control thy expenditures

Ok, so I'm guilty of shopping a little too much sometimes, now that I'm a friggin pansy and my suits have to be custom made otherwise they're not "comfortable" enough anymore. But lately things are growing faster than I can spend - which is a good sign. Now the hard part is not growing what I spend.

3) Make thy gold multiply

Hah, Done! It's only what I've been working on for the past 4 years.

4) Guard thy treasures from loss

Done too - I used to be worth more dead than alive. I suppose that's some sort of accomplishment ;) - Take that life insurance companies!!

5) Make of thy dwelling a profitable investment

Not quite yet. So far, my house was going to be my biggest selfish purchase ever, but now that I understand the restructing of equity - perhaps I'll make my house work for me after all.

6) Insure a future income

Passive income = Future income - wether or not I get off my ass.

7) Increase thy ability to earn

Well, I guess it's why I'm reading a book a week and giving Amazon lots of money. Alongside searching for mentors and other sources of learning. At one point in time, I thought I'd be going back to traditional "schooling" again to better myself, but so far, I'm doing pretty darn good with my own self directed studies... Perhaps I'll seek that MBA later in life - after I'm done expanding my business around the globe.

There's a surplus in Government funds. What should they do?

A) Save it (to fix the debt from previous government)
B) Lower Taxes (if there is a surplus, apparently we're paying too much)
C) Spend it...

Seeing as the default answer is "C" - I wonder what they're spending it on?
Perhaps they're helping with the long line ups at the passport office? - Wait, last I checked the line was about 6 hours long minimum. Maybe they're helping the unfortunate find jobs? Oh wait... no they increased people's ability to donate to charity and claim tax credits so they could cop out on that one.
Hmmmm... I wonder where the money's going?

http://www.canada.com/vancouversun/news/story.html?id=22033c43-1ca6-4d37-b1ab-d36498097142&k=76832

...and people wonder why I run seminars on how to save money on taxes.