7 Simple Wealth Creations lesson from Ancient World.
I am the kind of person for whom saving money is so hard. Have you ever wondered why it feels so hard? Or why, no matter how much you earn, it never seems enough?
I know that I am not alone here, many of the readers here will be having the same problems.
These questions have been asked for centuries. Money worries aren’t new—they’re part of life.
In The Richest Man in Babylon, George S. Clason shares seven simple cures for wealth-building.
These principles are straightforward, practical, and easy to apply, no matter your financial situation.
When I read this, I was shocked to know these rules and their simplicity. How they have been there, sitting in this world and how we are unable to grasp them.
This post is all about giving my personal insights about those rules.
1. Strat to make your purse Fat.
How do we do that?
Simple by starting to SAVE. Sounds simple, right?
But the key here is paying yourself first. It means when you are getting the money from whatever source, you put some amount aside for yourself.
It is not for your enjoyment but to be kept there and not to be touched.
Before you spend a single penny on bills, food, or fun, save at least 10% of your income. This money is for you and your future—not for others. This saving is the first thing that you will do.
Every dollar you earn is like a seed. If you plant some of those seeds by saving, they can grow into a tree of wealth and get fat. But if you spend every dollar, you’ll always be starting from scratch.
The math is simple. If you earn $1,000 a month, save $100. If you earn $10000, save $1000.
Put it in a separate account and pretend it doesn’t exist. Over time, this will add up. In just a year, you’ll have so much in the account that will make you happy and one step closer to Financial independence.
If you think that you won’t be able to save 10%, start small. Even saving 5% of your income is a great start.
What matters is consistency. Over time, you will be able to save 10% and then 20%. Remember, 10% rule is minimum and not the maximum.
2. Control Your Expenditures
Have you ever looked at your bank account and thought, Where did all my money go?
I have.
It’s easy to spend money without realising it. That’s why this Law is about keeping your expenses in check.
We often confuse “wants” with “needs.” A Coffee from your favourite café feels like a small treat, but if you buy one every day, it adds up.
Let’s say it costs $5. That’s $150 a month or $1800 a year!
The solution? Create a budget.
Write down everything you earn and everything you spend.
This helps you see where your money is going. Then, cut back on things you don’t truly need. It is difficult in the beginning, but it will be easier as we go. For me, it has been a hell of a difficult thing. But I hope to get out of this. Imagine I am at 50% of this process.
Now, you might cancel unused subscriptions or cook more meals at home instead of eating out. That is a great Strat. For me, it was a Netflix subscription and avoiding Starbucks coffee every day.
Small changes can make a big difference over time.
We can use the “50/30/20 rule” for budgeting. I have started to use it, and it is working fine for me.
What it means is – to spend 50% of your income on needs and 30% on wants and save the remaining 20%. Adjust these percentages to suit your situation.
3. Make Your Savings to Make Money for You
Saving is just the beginning non our process of financial independence. The next step is to make your money grow.
This means investing.
When you invest, your money works for you instead of sitting idle. Such a beautiful concept and the most ignored one.
Think of it like planting a tree. At first, it’s small, but with care, it grows and bears fruit.
Investments can do the same for our savings.
There are many ways to invest.
- You could put your money in a savings account with interest.
- You can also buy stocks or
- Contribute to a retirement fund and many more.
Over time, these investments grow and earn money for us, thanks to compound interest.
Imagine investing $1000 in a fund that grows at 5% per year in 10 years; you will have about $1628. That is $628 you earned without doing anything extra!
How great is that? This makes you happy. Makes me.
But remember: Do not rush into investing. Learn the basics first. Study and get knowledge about them.
Start with something safe, like a high-yield savings account or a low-cost index fund.
And always get advice from someone you trust if you’re unsure.
4. Guard Your Money from Loss
Have you ever lost money on a bad decision? Maybe you trusted the wrong person or got caught up in a scam. I have. I Was and am still bad at this. May be 10% better than what I Was a year ago.
This Law is a reminder to protect your money.
Avoid risky investments, especially ones that promise huge returns quickly. There are many such things. Believe me.
Remember – Wealth takes time to build. It is not an overnight process. Be Wise.
If someone offers you a chance to invest in something that guarantees to double your money in a month. It might be tempting, but it’s likely a scam. Instead, stick to reliable investments, even if the returns are smaller.
Also, be cautious about lending money.
Only lend what you can afford to lose, and make sure there’s a clear repayment plan. There are chances that the money you lend may not make it back.
Before investing or lending, do your homework. Research thoroughly, and consult with experienced professionals.
It’s better to be safe than sorry.
5. Buy a Property – It is an asset
Let us take an example of Home.
Owning a home or some property can be a great way to build wealth. But it has to be done wisely.
When you rent, you’re essentially paying someone else’s mortgage.
But when you own a home, you’re building equity. Over time, your home can become a valuable asset.
However, this doesn’t mean you should buy the biggest or fanciest house you can afford.
Instead, focus on something practical and within your means.
Example – If your rent is $1500 a month and buying a small home costs $1200, purchasing the home could save you money while giving you an asset.
Before buying a home, consider all the costs, like maintenance, property taxes, and insurance.
Make sure it fits your budget.
Do not extend your feet more than the length of your bed.
6. Ensure an income for your Future
What will you do when you can no longer work? That is the question we should ask ourselves. The answer lies in this Law.
This law is about planning for the future.
We can do that by:
- setting up a retirement fund,
- investing in life insurance, or
- building passive income streams like rental properties or online businesses.
If you save $200 a month in a retirement account with a 6% return, you’ll have over $200,000 in 30 years (if math is wrong don’t curse me). That is the power of starting early and being consistent.
Think of this as planting seeds for the future. It may take time to grow, but when it does, it will give you security and peace of mind.
Start saving for retirement today, even if it’s just a small amount.
The earlier you begin, the more time your money has to grow.
7. Increase Your Ability to Earn
I came across this thought in the book. “Your greatest asset is you”. That is such a wonderful statement.
If you want to earn more, invest in yourself.
Learn new skills, take courses, or seek opportunities to grow in your career. Improve yourself consistently.
If you’re good at graphic design, you could learn digital marketing to offer more services. Or, if you’re in a job, ask your boss what skills you can develop to qualify for a promotion.
Even small improvements can make a big difference.
Over time, these skills can help you earn more and create new opportunities.
Set aside time every week to learn something new. It could be reading a book, taking an online class, or practising a skill.
The more you grow, the more you can earn.
Remember
These seven laws are simple but powerful. Do not overlook them. Implement them, and you will see your wealth Grow.
They don’t promise quick riches, but they offer a clear path to financial Independence.
The key is to take action. Start small, be consistent, and stay patient.
Wealth isn’t about luck—it’s about habits.
Whatever you choose, take the first step today.
Your future self will thank you.
