Introduction

There is always a need for being thrifty and careful with the money that we earn. Never more so than now during the pandemic and economic hardship taking place around the world.

There is a classic book written in the 1920s called "The Richest Man in Babylon" which outlines the stories and rules from Babylonian times. Even back then, they had basic rules and guidelines to make sure that your money was safe. Back then, these rules were written in stone, engraved on stone tablets.

The rules are outlined below:

"Seven Cures For a Lean Purse"

1. The First Cure: Start thy purse to fattening. The book suggests taking at least 10% of your income and saving it for your future. Yes, it hurts to save 10% but after a while, you will get used to it and reduce your spending. Remember, spending your income is providing an income and savings for other people and businesses. It will feel good when you see your increasing savings balance.
2. The Second Cure: Control thy expenditures. There is a great quote in this chapter - "Confuse not the necessary expenses with thy desires". Most people as they earn more or get a raise at their job, simply increase their expenditure to match their higher income. Perhaps save at least half of any increase in income, and make sure you separate your needs from your wants. A new car is a want to be flashy and show off to your friends, a second car may be a need so you can get to work.
3. The Third Cure: Make thy gold multiply. This chapter is all about making your money work for you. Imagine your coins in the gym, pumping weights to get stronger and bigger. Make your money a slave to you, rather than like most people, and being a slave to your money. Earn interest on your money and investments, rather than pay interest to others on credit cards and loans.
4. The Fourth Cure: Guard thy treasures from loss. Never invest in get-rich quick schemes as they are simply a way to lose your money and make others rich with your money. The first rule of money is not to lose money. The second rule of money - refer to rule number one. Never risk your hard earned money. It was hard and took a long time to earn it. So invest wisely. Make money slowly and safely, rather than risk its loss.
5. The Fifth Cure: Make of thy dwelling a profitable investment. It is recommended by the book that you buy your own home, and then set up a business. It will give you a safe and secure place to live, rather than renting and being at the mercy of your landlord. Everyone should own the roof over their heads. In today's modern world, it may be advisable to shop around for property rather than simply buy off the plan or in high priced cities.
6. The Sixth Cure: Insure a future income. This is a important chapter which discusses the importance of having a regular income when you are no longer able to work or for your family when you pass away. It is important to plan for the future for that of both your family and yourself in old age with wise and regular investing now.
7. The Seventh Cure: Increase thy ability to earn. The last chapter deals with self improvement. The more we learn, the more we study, the better the investments and money decisions we can make. Get a trade qualification, go to university to get a better paying job, start a business and make wise investments after lots of research and asking lots of questions. Reading articles on Publish0X is also a way of learning. This is the path to financial independence. 

"The Five Laws of Gold"

These laws in the book talk about how to earn, then invest your money (gold) and how to keep it safe for you and your family. Each of the laws is explained in layman's terms or in my words below.

1. The First Law of Gold. Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family. Money seems to be attracted to those who use it wisely, save it regularly and place it in safe places.
2. The Second Law of Gold. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. Invest your money wisely and regularly and over the long term it will increase significantly in value. Do not invest in get rich quick schemes or follow investments that you do not understand.
3. The Third Law of Gold. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling. Seek out wise counsel, ask questions of those with experience. This is not the place to listen to spruikers on Youtube or here on Publish0X. Seek out those who are already rich and know what they are doing. Invest for the long term, not for the 100% return in a week, as you will simply lose your money.
4. The Fourth Law of Gold. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep. Pretty straight forward here, do not invest in what you do not understand or what you have not researched thoroughly.
5. The Fifth Law of Gold. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment. Again, the same rules as before. Invest wisely and safely. Do not seek excessive returns or get rich quick schemes as your money will simply be taken away from you and make others rich. Slow and steady wins the investment advice.

Conclusion

In today's uncertain and constantly changing world, with bushfires, drought, flood, pandemics and unstable countries and many wars, it is crucial to work hard, save even harder and invest very, very wisely. The laws outlined above are from thousands of years are more important than ever today. Perhaps read the book online or buy it at a bookshop near you.

Start saving and investing wisely today :-) Let us know your savings and investment stories below in the comments. Please remember to follow me :-)