The First Cure for a Lean Purse
Save 1/10th of income
The First Cure for a Lean Purse is a simple yet effective method for building wealth. It involves saving one-tenth of one's income and using the remaining nine-tenths for expenses. This cure is based on the principle that saving is essential for achieving financial stability and security.
- Save one-tenth of your income
- Use the remaining nine-tenths for expenses
- Prioritize saving over spending
- Determine your incomeCalculate your total income from all sources.Pro tipInclude all sources of income, such as salary, investments, and side hustles.WarningDo not underestimate your income, as this can lead to inaccurate savings calculations.
- Calculate your savingsSet aside one-tenth of your income for savings.Pro tipUse a separate savings account to keep your savings separate from your expenses.WarningAvoid dipping into your savings for non-essential expenses.
- Allocate your expensesUse the remaining nine-tenths of your income for expenses.Pro tipPrioritize essential expenses, such as rent, utilities, and food.WarningAvoid overspending on non-essential expenses.
Arkad's story
Arkad, a wealthy merchant in ancient Babylon, used the First Cure to build his wealth. He saved one-tenth of his income and used the remaining nine-tenths for expenses.
OutcomeArkad achieved financial stability and security, and was able to share his wisdom with his students.
Not saving enough
Failing to save one-tenth of your income can lead to financial instability and insecurity.
Dipping into savings
Using savings for non-essential expenses can undermine your financial progress and stability.
The First Cure was discovered by Arkad, a wealthy merchant in ancient Babylon, who shared his wisdom with his students. He taught them that saving is the foundation of wealth and that it is essential to prioritize saving over spending.
Source · BOOK
The Richest Man in Babylon: George S. Clason International Bestseller Book ‘The Richest Man in Babylon’ for How to Gr...