Basic Principles of Money and growth



In ancient times, financial advice was given through common knowledge, stories, and parables that you can apply even today. The Babylonians discovered many fundamentals about wealth creation, such as, saving a small portion of your income each month, investing it wisely, learning how to lend money rather than borrow, and how to protect your wealth.

A young man asks a rich person to advise him to become rich. This rich man gradually teaches him the laws of money, which are timeless and that anyone can apply. He scolds the young man if he makes a mistake, but eventually, the boy becomes rich.

Some people are born millionaires and there are others who have been able to get out of their jobs after hard work for few decades on their own and never returned to work again because they have acquired enough wealth to take care of all their financial needs for the rest of their lives.

For this, you will not have to hide every penny you have earned under the mattress or you will not have to work for extraordinary long hours which an ordinary man cannot do.

Wealthy people develop their wealth mostly on the basis of 2 things:

1. Save a little from what you earn
2. Invest more of your saved money

The first step of becoming rich is that your expenses should be less than your income. Reducing expenses does not mean that sometimes you cannot go out to eat out or watch movies. Even by doing this, you can control your expenses.

Where expenses are not necessary, save the money and invest. You know best, where you are spending money only for convenience, entertainment and satisfaction, that is not really necessary, that is the money you should save and invest.

The richest man in Babylon suggests you save 10% of your income to invest. If you save 10% of your income regularly, it will not make any difference in the quality of your life.
So it is important that you reduce your expenses in non-renewable things and easy pace towards 10% savings.

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