Now we know that why saving and investing are so important – read the article here. Now We can move on to know how we can save our money in a decent way and what are instruments and assets in which we can invest our hard-earned money. so Let’s begin.
The saving of money is an art and it was practiced from ancient times. I read a very good book years ago, named ‘’ The Richest man in Babylon’’ by author George S. Clason. It is a very good book on personal finance. you can buy it from here. Now I will tell you the money lessons from this book which I personally followed for many years. If you follow these laws very rigorously, no one can stop you from becoming rich.
Laws of Money
1. Pay yourself first
- When we get our salary on day 1 we normally pay our debts, expanses and buy something for ourselves like gadgets, mobile, new cloths etc. after that if, I say if any remaining little money then we goes for saving.
- So here the rule – pay yourself first at least 10% of your income.
- This is your saving, this is your share.
2. Control your expenditure
- First of all make a monthly budget.
- Budget your expenses shows that where the money is going on un-necessary things and enables you to stop them.
- Do not confuse your ‘necessary expenses’ with your ‘desires’.
3. Make your money multiply
- Now your saved money is your treasures. And cleaver people make this treasure work for you.
- How can we make money from saved money? The answer is – simply invest your money in good assets and schemes.
- If you can’t find right scheme for yourself or hesitating to participate in it simply give your money to your family or to friends on interest. It will do your treasure working for you.
4. Guard your treasure (saved money) from loss
- The security of your treasure is so important. thats why You should invest in such scheme where the risk of losing the principle amount is lower.
- A small return and a safe one is more desirable than losing your all savings.
- Also remember that give your money on interest to those people they have the ability to repay your money with all interest.
5. Buy a roof for yourself from this money
- It is a dream of all that they has at least a home for his whole life. So you should go for buying a house if you can afford one.
- It is also a good investment and you don’t have to spend on house rent. It will increase you saving.
6. Insure a future income
- Now you have saved a lot of money and you are earning a good interest or may be your investment giving you a handsome return, so now is the time to becoming rich.
- Buy 1 more house or land for the purpose of rent. Buy any rental property.
- Setup any small side business from this interest amount.
- Buy any good health insurance for the protection of your family.
7. Learn new skills
Earn –>> Save –>> invest –>> Secure –>> repeat the process
- Now is the time to becoming rich.
- repeat the process by Learning.
- This is the process by which you can become rich. after follow these steps and this process you have to learn more skills that we benefit you to becoming rich.
- Always learn some good new skills.
- Read good stuff and watch useful videos.
So my friends these are the ancient laws that are recollected from the burials of the land of Babylon (now Iraq).
To know more about these laws and Babylon read this fantastic book named ‘’ The Richest man in Babylon’’ by author George S. Clason.
Hope you enjoyed learning about this article. If you have any questions or doubt in your mind, you can ask me in the comments section.
My name is Mohit Luniwal and Thank you so much for reading.
is inflation is good for us?
not it is not good for us because it is decreasing our purchasing power day by day.
why buying a house is so important?
buying a house is very important because it is a good asset and its value always increases in long run.