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Save before you spend
12 Mar 2017 (68 views)

Most people save what is left over, after they have spent what is needed from their salary. This wise man advised people to set aside their savings first. Here is the story of the richest man in old day Babylon.
 

Arkad was the son of a humble merchant, of a large family with no hope of inheritance — who grows to become the richest man in Babylon, thanks to wisdom he sought out from a rich money lender named Algamish.

One day, a group of Arkad’s friends decide to consult him. They ask him how he got so rich and how they can do the same.

Arkad tells them what Algamish once told him: Essentially, to save money before spending it, rather than saving money that’s left over. 

“Say to yourselves, ‘A part of all I earn is mine to keep,’” he explains to his friends. “Say it in the morning when you first arise. Say it at noon. Say it at night. Say it each hour of every day. Say it to yourself until the words stand out like letters of fire across the sky.”

More specifically, he tells them to set aside a minimum of 10% of their earnings:

Take whatever portion seems wise. Let it be not less than one-tenth and lay it by. Arrange your other expenditures to do this if necessary. But lay by that portion first. Soon you will realize what a rich feeling it is to own a treasure upon which you alone have claim. As it grows it will stimulate you. A new joy of life will thrill you. Greater efforts will come to you to earn more. For of your increased earnings, will not the same percentage be also yours to keep?

Once you’ve made a habit out of setting aside at least 10%, put that money to work, Arkad advises his friends: “Then learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you … Invest they treasure with greatest caution that it may not be lost.”

Read more here

Note - in my talk on Financial Planning, I advised people to save 15% of what they earn to be used for emergencies in the future and for retirement needs.

Tan Kin Lian
 


Save before you spend
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Most people save what is left over, after they have spent what is needed from their salary. This wise man advised people to set aside their savings first. Here is the story of the richest man in old day Babylon.
 

Arkad was the son of a humble merchant, of a large family with no hope of inheritance — who grows to become the richest man in Babylon, thanks to wisdom he sought out from a rich money lender named Algamish.

One day, a group of Arkad’s friends decide to consult him. They ask him how he got so rich and how they can do the same.

Arkad tells them what Algamish once told him: Essentially, to save money before spending it, rather than saving money that’s left over. 

“Say to yourselves, ‘A part of all I earn is mine to keep,’” he explains to his friends. “Say it in the morning when you first arise. Say it at noon. Say it at night. Say it each hour of every day. Say it to yourself until the words stand out like letters of fire across the sky.”

More specifically, he tells them to set aside a minimum of 10% of their earnings:

Take whatever portion seems wise. Let it be not less than one-tenth and lay it by. Arrange your other expenditures to do this if necessary. But lay by that portion first. Soon you will realize what a rich feeling it is to own a treasure upon which you alone have claim. As it grows it will stimulate you. A new joy of life will thrill you. Greater efforts will come to you to earn more. For of your increased earnings, will not the same percentage be also yours to keep?

Once you’ve made a habit out of setting aside at least 10%, put that money to work, Arkad advises his friends: “Then learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you … Invest they treasure with greatest caution that it may not be lost.”

Read more here

Note - in my talk on Financial Planning, I advised people to save 15% of what they earn to be used for emergencies in the future and for retirement needs.

Tan Kin Lian