I will share this article with you

Written by Dennis Ng of Leverage Holdings.

The 5 Laws of Money (Gold). 

The book entitled “The Richest Man in Babylon” in my opinion, is really one of the “classics” in Personal Finance. 

It’s first published in year 1926, 81 years ago! However, what the book shares are “Financial Principles” which are as useful and practical today, as they were, when first published in year 1926. 

I’ve personally benefited from the book tremendously and applying the principles therein and have experienced improvement in my own finances. 

Cheers! 

Dennis Ng, http://www.HousingLoanSG.com 

The principles shared might seem simple. However, be really honest with yourself and check if you had “violated” some of the principles shared so far. Of course, the principles are not beneficial to those who think they already are very knowledgeable and have nothing to learn from others. 

They can bluff the whole world however, their own financial results will show whether they themselves are “financially literate” and really “know” what they proclaimed to know. 

A friend of mine said:”knowing and not doing it, is not yet knowing”. What he means is that you only know it if you’re applying what you learned. Knowledge is only POTENTIAL power. Knowledge is ONLY power when APPLIED. 

Below are written by me in Simple English, interpreting “The 5 laws of Money (Gold)” as shared in the book “The Richest Man in Babylon”: 

The 5 Laws of Money: 

1. Money comes gladly and in increasing quantity to any person who save at least 10% of his/her earnings (first step to Financial Freedom). 

There are only 3 Cashflow Scenarios: 

a. You spend more than you earn: This person has negative cashflows and likely to end up owing other people money (eg. credit cards, friends, relatives, loan sharks). 

b. You spend all that you earn: whether this person is earning S$2,00 a month or S$200,000 a month, he/she is still "Just over broke". 

c. You spend less than you earn (eg. save 10% of your eanings). as time goes by, this person will automatically get richer and richer. 

Which cashflow scenario do you want to CHOOSE for yourself? 

2. Money can work for you, if you become the “wise owner” of money and make money work for you. (note: you’re the Master, money is the slave, while many people are guilty of being slaves to money). 

We should Love people, use money. The sad thing is there are people who Love money and use people instead. 

3. Money will be safe and grow if you invest it wisely or if you invest under the advice of people who are wise in money. ie. investment knowledge is key to making money grow. You can either acquire Investment Knowledge yourself or you can invest money under the advice of people who have investment knowledge. 

4. Money will slip away from the man who invests it in businesses or investments with which he is not familiar or not “approved” by people who are wise in money. ie. Ask the opinion of those who are wise in money, they might be able to offer you information or advice that can prevent you from losing money. 

5. Money flees the man who falls into scams created by tricksters and conmen, who promise “impossible earnings”. One common weakness of human beings is "greed". Greed can make a person who is usually alert and smart "stupid". Greed can blind a man and is the main reason why financial scams continue to exist whether in ancient times or in the modern day.