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Seven Cures for Lean Purse : Make your Gold Multiply

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 Here is the third cure for lean purse, read it carefully; "Behold thy lean purse is fattening. Thou hast disciplined thyself to leave ...

 Here is the third cure for lean purse, read it carefully;

"Behold thy lean purse is fattening. Thou hast disciplined thyself to leave therein one-tenth of all thou
earneth. Thou hast controlled thy expenditures to protect thy growing treasure. Next, we will consider
means to put thy treasure to labour and to increase. Gold in a purse is gratifying to own and satisfieth a
miserly soul but earns nothing. The gold we may retain from our earnings is but the start. The earnings
it will make shall build our fortunes." So spoke Arkad upon the third day to his class. "How therefore may we put our gold to work? My first investment was unfortunate, for I lost all. Its tale
I will relate later. My first profitable investment was a loan I made to a man named Aggar, a shield maker. Once each year did he buy large shipments of bronze brought from across the sea to use in his trade. Lacking sufficient capital to pay the merchants, he would borrow from those who had extra coins. He was an honourable man. His borrowing he would repay, together with a liberal rental, as he sold his shields. "Each time I loaned to him I loaned back also the rental he had paid to me. Therefore not only did my capital increase, but its earnings likewise increased. Most gratifying was it to have these sums return to my purse.
"I tell you, my students, a man's wealth is not in the coins he carries in his purse; it is the income he
buildeth, the golden stream that continually floweth into his purse and keepeth it always bulging. That is what every man desireth. That is what thou, each one of thee, desireth; an income that continueth to
come whether thou work or travel. "Great income I have acquired. So great that I am called a very rich man. My loans to Aggar were my first training in profitable investment. Gaining wisdom from this experience, I extended my loans and investments as my capital increased. From a few sources at first, from many sources later, flowed into my purse a golden stream of wealth available for such wise uses as I should decide.
"Behold, from my humble earnings I had begotten a hoard of golden slaves, each labouring and earning
more gold. As they laboured for me, so their children also laboured and their children's children until great was the income from their combined efforts.

Happy companies are playing differently

  
"Gold increaseth rapidly, when making reasonable earnings as thou wilt see from the following: A
farmer, when his first son was born, took ten pieces of silver to a money lender and asked him to keep
it on rental for his son until he became twenty years of age. This the money lender did, and agreed the
rental should be one-fourth of its value each four years. The farmer asked, because this sum he had set
aside as belonging to his son, that the rental be added to the principal.
"When the boy had reached the age of twenty years, the farmer again went to the money lender to
inquire about the silver. The money lender explained that because this sum had been increased by com
pound interest, the original ten pieces of silver had now grown to thirty and one-half pieces.
"The farmer was well pleased and because the son did not need the coins, he left them with the money
lender. When the son became fifty years of age, the father meantime having passed to the other world,
the money lender paid the son in settlement one hundred and sixty-seven pieces of silver.
"Thus in fifty years had the investment multiplied itself at rental almost seventeen times.
"This, then, is the third cure for a l ean purse: to put each coin to labouring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse."

The first cure for Lean Purse


Source: The Richest Man in Babylon by George S. Clason

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Seven Cures for Lean Purse : Make your Gold Multiply
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