In today’s technologically driven society, persons looking for advice can readily turn to the Internet to find solutions to almost any problem that they might encounter. When it comes to financial issues, it’s not difficult to search online and quickly find answers to a variety of questions about money.

One of the financial questions foremost on many people’s minds is how to become wealthy by investing. Many readers express that they would like to find the secret to making money work for them, so that they can work less. However, while it’s important to learn about the operations of different investment options, it is even more essential to discover the principles of investing.

One resource that contains many of the basic laws of investing and creating wealth is The Richest Man in Babylon, by George S Clason. Although this book was written in the 1920s, it still provides relevant and practical nuggets of wisdom that can help you to understand what it takes to build sustainable wealth.

Clason uses parables set in the ancient world of Babylon to impart his lessons of financial success. Despite the passage of time, Clason declares: “Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon, six thousand years ago.”

Many financial gurus, successful investors and wealthy entrepreneurs share stories of how reading Clason’s masterpiece changed their lives. It is definitely on my recommended list of books that can help you to learn what it takes to be financially successful. Here are some tips from the past that can help you to create a prosperous future:

Start thy purse to fattening

“Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.”

Clason’s simple rule is one that financial advisors still preach today — for every dollar you earn, save 10 per cent. Putting aside some of your income is the simplest and most effective way to start the wealth-building process. Even if it seems insufficient to meet your needs, you can live on 90 per cent of what you earn if you are determined to achieve your goals.

Make thy gold multiply

“Gold laboureth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.”

Saving alone won’t make you wealthy; Clason confirms that you must look for wise investments to create cash flow. Each ‘coin’ must be put to work so that it duplicates itself, Clason reveals, until there is a constant stream of money flowing back into your ‘purse’. Your money will become productive when you take advantage of opportunities to put it to good use.

“Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.”

While he advises you to put your savings to work, Clason cautions you to first seek prudent financial advice. It is important to consult with people who have expert knowledge in investing before committing your money into an endeavour. Your money will multiply when you learn more about investment options and make provisions to keep your principal reasonably secure.

Guard thy treasures from loss

“Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.”

This rule is a warning to all persons who wish to build wealth in business. It’s important to have some experience or knowledge in the business arena you choose, as Clason counsels that “the inexperienced owner of gold who invests it in businesses with which he is not familiar, too often finds his judgment imperfect, and pays with his treasure for his inexperience”.

“Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.”

The process of building wealth should not be rushed, but approached in a pragmatic and level-headed manner. Greed will always lead to the downfall of investors, as it makes them lose reason, become reckless and take unnecessary risks. Just like today, persons in Clason’s ancient tale invested in get-rich-quick schemes and ended up losing their hard-earned savings.

Clason warns that “fanciful propositions that thrill like adventure tales always come to the new owner of gold. These appear to endow his treasure with magic powers that will enable it to make impossible earnings”. Take careful note of Clason’s admonition: “Heed ye the wise men, for verily they know the risks that lurk behind every plan to make great wealth suddenly.”

If you wish to find out more about our recommended books, or leave a comment, please e-mail: cherryl@financiallysmartonline.com

Cherryl is a financial consultant, money coach and founder of Financially S.M.A.R.T. Services. Her first book, “The 3 Ms of Money” will reveal all the secrets she learned about financial success. Get more practical money advice at www.financiallysmartadvice.com and free tools at www.financiallysmartonline.com.