LESSONS FROM THE RICHEST MAN IN BABYLON: RULE 2
Wealth creation is one of the most discussed topics of all time; at schools, financial seminars, churches, and even family discussions, wealth creation dominates conversations and thoughts. Wealth is an enabler of the good life and since everyone want to live the good life, it is only expected that wealth creation is a constant conversation.
One of the best sources of information about wealth creation are books. If you want to be wealthy, be a reader. And one of the books that treats the topic, perhaps more lucidly than others, is The Richest Man in Babylon written by George Clason.
Having explored the first major lesson, “Start your purse to fatten / Start fattening your financial accounts” last week, let’s look at the second lesson from the book.
Lesson 2: Control your expenses
In building wealth, it is important that you make enough money to cover your expenses. However, that is just one way to it. Anyone who will build wealth must be disciplined enough to make his expenses as minimal as possible in order to be able to save at least 10% of his income as rule one posited.
Unnecessary expenses is one of the major reasons why people find it difficult to set aside at least 10% of income. Many people make enough money to meet their needs but still remain poor or average because they are unable to exercise the discipline required to cut down on their expenses by buying only what they need.
The Richest Man in Babylon hints that desires grow in men so freely whenever there’s a possibility of them being fulfilled. You are then tasked to thoughtfully study your habits of living for you to find expenses that could be reduced or eliminated completely.
A skillful way to do this is by creating a budget. The main purpose of drafting a budget is to identify leaks from your account, and also helps to control your spending. Experts say that budgeting is the most significant factor that impacts the quantity of savings.
Therefore, the lesson is that always budget for your expenses, so that you may have coins to pay for necessities, enjoyments and to grant your worthwhile desires without spending more than 90% of your earnings.
That said, every kobo you save from now on can be put to productive use by investing in the right portfolio, chief of which is real estate. For generations, real estate is the most guaranteed way of building wealth and you have the opportunity to invest with a firm that guarantees you the best return on your investment. Contact us today for more information about investing in real estate.