Babylon was the wealthiest and most prosperous city in the ancient world. About four thousand years ago, the inhabitants of Babylon, on the Euphrates banks, with their empty gardens, impenetrable walls, wide roads, and magnificent temples, were also the world’s wealthiest people at that time. And the richest was Arcad. He inherited nothing, not suddenly by chance. He was merely an ordinary scribe. In his strong desire to become rich, he gradually increased his wealth by following some simple rules.
Arcad generously imparted to the Babylonians knowledge of the seven general but useful rules to benefit others. Surprisingly these rules apply equally even after so many thousands of years. Priyom Majumder wrote about those seven rules of increasing the wealth of Arcad under the headline ‘Satkahan of Affordability’ online on 30 September 2019.
1. One-tenth savings
The advice given to young Arcad by his client Algamish changed his whole life: ‘No matter how small the money is, at least 1 / 10th of it should always be set aside for yourself first.’
No matter how hard it is to run on your own or run a family, this 1 part of 10 should be kept separate first. It is self-paying. As this accumulated money grows, so does the courage and contentment within oneself. And even if the income continues to increase in the future, the rule of keeping this one-tenth separate should continue.
2. Understanding costs
Each of us earns a sum of money. But why almost everyone suffers from a financial crisis at the end of the month? The reason is that I can’t tell the difference between what is a necessary expense and what is a mere necessity or luxury.
The daily expenses are incurred in which sectors have to be recorded somewhere for a month or two. Understand for yourself which cost is really ‘necessary’ and whether it can be met with that 9 percent of the money set aside for current expenses. You have to learn to fix the monthly costs in any way with those 9 percent.
3. Investment after savings
Not only sound education but his alertness and dedication too are most required. But yes, of course. Only those who are genuinely knowledgeable about money transactions or have had success in investing before should seek advice from them.
4. Beware of losses
There is always a handful of shortcuts to make money. The faster the money comes, the quicker it goes. Don’t fall into these traps on the advice of friends or relatives. You can’t even read the guilt of being in a hurry. The first condition of investment is the protection of capital. Even if you have to lend to someone, you must check whether they can repay the loan.
It is better not to go for the kind of business or investment you have less idea, and wise people avoid it. You have to take all the necessary education and measures to protect your savings and investments.
5. Self-made raw house, superior
If one part of the 9 per cent of the income is to be used for running expenses, then only if somebody can utilize one part for profitable investment will increase one’s wealth. This investment can be any land or house. But it must remember that it is worthwhile. If one wants to buy land and a home beyond one’s financial capacity or ability to repay the loan, it will be the opposite.
6. Thoughts of the future
We have to ensure the source of income for the future. The ability to earn decreases with age. After retiring, you need to plan to be able to depend on others.
7. Increase the way of earning
Many complain that due wages are not increasing. But the urge to make oneself an essential resource by increasing one’s skills or hard work is less. Specific and robust willpower is the primary regulator for improving one’s wealth. The more skill and knowledge one can acquire about working with hard work and patience, the more one’s self-confidence will increase. At the same time, his earnings continue to grow. Arcad also knew that many wealthy people would run out of money if they did not find ways to earn a living. If you only have money, it can run out quickly, but if you know money management, money grows.
The last word is therefore very small: keep a part of the income for yourself.
Source : Prothom Alo (30 September 2019)