I often tell my clients that wealth creation is not ‘rocket science’ and is not ‘brain surgery’ – basically it is not complex all it requires is simple common sense and believe it or not the basic concepts used today by groups like Premium Finance Services have been around for over 4000 years!
The Richest Man in Babylon by Samuel Clason published in 1926 is based on a Babylonian fable some 4000 years old and it explains the The Five Laws of Gold – common scene and fool proof rules to creating wealth. These laws are;
- 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. In other words, a person should pay themselves first and then live of the rest put away 10% of your income for the future as a bare minimum. This rule is so incredibly fundamental, yet only a small minority even bothers to follow it.
- Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. If you invest your money well, your money will simply make more money. Again, a very simple and obvious rule, but one that many people overlook because they didn’t follow the first rule.
- Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling. This rule encourages caution on behalf of the investor and requires the investor to be informed and seek advice from people with relevant experience.
- 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 who are skilled in its keep. This goes hand in hand with the third rule: if you invest in stuff you don’t understand, you’re likely to lose money and if you don’t fully understand let someone who does look after things for you.
- 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. This rule is the original version of “If it sounds too good to be true it probably is not true” and at it simplest means don’t be greedy, don’t try to outperform a market and don’t get involved in get rich quick schemes.
The Five Laws of Gold really are all you need to know to create wealth:
- Save at least 10% of your income for your family’s future
- Invest (shares or property) these savings– make them work for you
- Become informed and seek experienced ongoing professional advice
- Don’t invest in things you don’t understand & always invest with experienced professionals
- Be content with average returns – don’t try to outperform the market
Simple really!
At Premium Financial Services we teach our clients how to apply these Five Laws of Gold to their own financial circumstances and goals making wealth creation simple, worry free, hassle free, and risk free.