- Paperback: 160 pages
- Publisher: Signet (February 3, 2004)
- Language: English
- ISBN-10: 0451205367
- ISBN-13: 978-0451205360
- Product Dimensions: 6.7 x 4.2
Clason wonderfully puts down the principles of wealth management in parables. There are a lot of repeated reinforcements to strengthen the concepts as the average reader easily devours this small but substantial book.
My summary of the book will follow the chapters:
1) The story tells of the difference between the rich and poor. The difference does not arise from physical looks, IQ or skillsets but rather, having the knowledge of wealth management.
2) You decide what to do with what you earn.
- Hard work is not everything
- Save at least 10% of earnings
- Invest the savings in someone who knows his stuff to make the investment work for you
- Depend not on brute will power but shrewdness too.
- There is no such thing as finite wealth; everyone can always earn more
- Don't deprive yourself too much, enjoy life too as that is what we work for.
3) 7 cures for the lean purse
- Save 10% of earnings. One can always find that one can do with 10% lesser. The feel of a fuller savings purse further motivates.
- Budget and control expense. This practices delayed gratification
- Multiply by having income streams
- Stop loss or prevention; better safe than sorry. Always consult the wise.
- Always own a home
- Insure future income
- Increase the ability to earn, gain respect and improve self
4) Luck is defined as action on opportunity
- focus on expertise
- don't let opportunities go
5) 5 Laws of Gold
- Save 10% (again!)
- Put savings to generate income
- Protect principle by being safe and putting them in safe hands
- Don't be hasty for quick bucks
- Avoid unfamiliar businesses
6) The importance of protection of principle
- Helping others should not cast a burden onto self.
- Have a form or security when you lend
- Make sure the other is adequately skilled/prepared to pay (or make him prove it)
- What you lend is rightfully yours and yours to decide with it.
- Keep your money safe
- Multiply your money
- A litte caution is better than great regret
7) Insurance - we can ill-afford to be without adequate protection
8) Determination determines our way; desire forms our foundation for wealth
9) For the bankrupts
- pay back slowlyby setting more aside and making agreements on timeline
- the result will be that one will be a better man with better wealth management skills
10) Work is always to be enjoyed and will always prove to be the best option one can take in earning one's wealth.
11) This chapter gives a historical sketch of Babylon in its richness, more of its wisdom than actual wealth.
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