IRAQ — like North Korea, Somalia and Afghanistan — is nowhere near the top of any roving tourist's must-visit list. Yet millennia ago, a mighty metropolis of pomp, splendour and mystery lay 100km south of the Iraqi capital Baghdad.
For about 2,000 years, Babylon was the pulsing heart of ancient Mesopotamian culture. When the famous Nebuchadnezzar (actually Nebuchadnezzar II) ruled the Babylonian Empire from 605 to 562 BC, it was Earth's undisputed superpower stretching from modern-day Iraq, Kuwait, Syria and Turkey.
Babylon was a mega centre of learning. Countless foundational principles of astronomy, governance and finance were birthed and developed there. Its accomplishments and alluring mysteries inspired American businessman, cartographer and author George S. Clason to write arguably the most famous personal finance book of the last century, The Richest Man in Babylon. It is one of my favourite books and I regularly return to its pages for refresher lessons on financial planning basics.
Way back in 1926, Clason wrote and published the first of a series of linked parables that form his transformational personal finance novel, which has helped millions of readers understand the cornerstones of thrift and wise money management.
At this time when Malaysia's national coffers are fast depleting because of endless rounds of fiscal stimulus aimed at helping our battered people and beleaguered businesses survive the ongoing ravages of the Great Virus Crisis (GVC), it seems to me that Clason's abiding masterpiece is more relevant than ever. In the opening paragraph of the book's foreword, Clason — who died in 1957 at the age of 83 — wrote: "Our prosperity as a nation depends upon the personal financial prosperity of each of us as individuals."
LESSONS TO LEARN
It is clear that any country's total wealth is directly dependent upon the aggregate wealth of its government, businesses and citizens. Let that sink in.
Now, if you are a conventional employee, you may contribute to strengthening beautiful Malaysia by enriching yourself; and, if you're a business owner, by nurturing your business and accumulating productive assets.
Toward those worthy ends, let's consider Clason's lessons as taught by his lead character Arkad, who features prominently in the early chapters of the book.
Note: In the coming weeks I plan to explore the salient lessons from the 10 main chapters of The Richest Man in Babylon. Each chapter comprises a different parable birthed in Clason's fertile imagination.
To start off, though, here is a listing of Arkad's "Seven Cures for a Lean Purse":
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; and
7. Increase thy ability to earn.
Each of fictional Arkad's "cures" is factually based on a key principle of financial planning. So, I suggest you reread that list of the seven cures now.
After that, do decide which one of them is of greatest relevance to your current circumstances. Then take one (or both) of these two steps. Neither will cost you any money but will necessitate a minor investment in thought and time:
1. Write to me at rajen@RajenDevadason.com and tell me which ONE of Arkad's seven cures is of greatest interest or importance to you, and why that is so; OR
2. If your schedule permits it, then attend my next live public webinar on retirement planning and, during my Q&A session at the end, TELL ME directly which Arkadian cure you feel is of greatest relevance to your long-term future success, and then feel free to ask a related question. (That webinar – next scheduled for 8.30 pm on Nov 1 – is free but it requires pre-registration at https://learn.rajendevadason.com)
FABULOUS TEACHINGS
To get the ball rolling on understanding the personal relevance of Clason's fabulous teachings on personal finance, consider this snippet from a pivotal teaching session Arkad delivers to a group of 100 men in the so-called great hall of ancient Babylon's Temple of Learning. His class is aimed at inspiring the adult students to learn sound money principles and to then have them teach those to other people:
"Listen attentively to the knowledge that I will impart. Debate it with me. Discuss it among yourselves. Learn these lessons thoroughly, that ye may also plant in your own purse the seed of wealth. First must each of you start wisely to build a fortune of his own. Then wilt thou be competent, and only then, to teach these truths to others."
If you are a regular reader of this Money Thoughts column, you will be familiar with a major staple of my arsenal of advice for financial health: Spend less than you earn, save and invest the difference, and do so for a long time.
For specific instances of when I have given this advice in writing and for various ways of applying it, you're welcome to access the online archive of this column at www.nst.com.my/authors/rajen-devadason
Over the past 100 years, countless personal finance experts have disseminated variations of this potent piece of advice. To the best of my knowledge, the original source of it in popular writing is from Clason's typewriter through to wealthy Babylonian Arkad's first, second and third "Cures for a Lean Purse".
I truly hope you'll heed Clason's, Arkad's and my foundational advice.
© 2021 Rajen Devadason
Rajen Devadason, CFP, is a Licensed Financial Planner, professional speaker and author. Read his free articles at www.FreeCoolArticles.com; he may be connected with on LinkedIn at https://www.linkedin.com/in/rajendevadason, or via rajen@RajenDevadason.com. You may also follow him on Twitter @Rajen Devadason and on Clubhouse (Rajen Devadason).