Money talks || Cures for a lean purse – II3 mins read

Hi money-minded peeps! Happy new month!!!

Hope you’ve made some personal finance assessments and adjustments since we discussed the first two cures for a lean purse? If you have, awesome! If you are yet to, you’re still on track because now that you have the knowledge, all you need now is the ginger to implement.

Here’s something Arkad has to say to you on that note – ‘Wealth, like a tree, grows from a seed. The first copper you save is the seed from which your tree of wealth shall grow. The sooner you plant that seed the sooner the tree grows. And the more faithfully you nourish and water that tree with consistent savings, the sooner may you bask in contentment beneath its shade’. This is the ginger you needed. Oya gbera and get to it ASAP!

We’re continuing the discussion on the cures for a lean purse. In case you missed when it was first discussed here, I’ll reintroduce you to what the cures for a lean purse mean. They are a set of rules concerning personal finance outlined in the richest man in Babylon. These rules were narrated by Arkad, the richest man in Babylon who started from nothing in the rich city of Babylon. The rules are said to have guided men in those days towards acquiring and retaining riches.

' 'Wealth, like a tree, grows from a seed... The sooner you plant, the sooner the tree grows. And the more faithfully you nourish... with consistent savings, the sooner may you bask in contentment beneath its shade' - Arkad, the richest… Share on X

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#3 ‘Make thy gold multiply.’

‘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.’

Arkad.

Saving is not enough. The Yorubas’ say ‘owo la fi n wowo’ meaning ‘it is money we use to look for money.’ This is investment summarized. You can’t be working while your money is chilling in one corner of your cupboard. You have to put it to work! Putting your money means putting your money into investments which will add value to your money.

‘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.’ - Arkad. Share on X

There are various ways to go about this and you don’t have to be earning a whole lot before you start. Building the habit now is a good way to sustain it and be more knowledgeable when the big bucks come. Investing can be low-, medium- or high- risk, depending on how much you are willing to part with and how secure your capital is.

Some investment types I’ve come across are money market funds, treasury bills, agricultural investments, legal bonds… Also investing in a start-up or a business. Always remember to sign an agreement with the other part, even they are family/friends. You can check out Subomi Plumptre’s site, where she has a column on investments.

#4 ‘Guide your treasure from loss.’

‘Every owner of gold is tempted by opportunities whereby it would seem that he could make large sums by its investments.’

Arkad.

We’ve spoken about how money saved needs to be invested in order to yield more increase. However, it would be an oversight if we do not expound on securing said investments against loss. It is very easy to be swayed by the high returns of investment (ROIs) and get carried away. Investments can be really tricky sometimes.

Arkad advises against taking on investments where the capital is not insured however, most investments with high ROIs come with the risk of losing the capital. This is where knowing your level of investment risk comes in. It is determined by your level of income, and personality among other things and it can change over a period. Here’s a calculator I found online to calculate your personal level of risk-taking.

‘Every owner of gold is tempted by opportunities whereby it would seem that he could make large sums by its investments.’ Share on X

It is also recommended that you seek sound investment advice before embarking on any investment. Money business is serious business.

‘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.’

Arkad.

I’ll include the 5 laws of gold, from the same book, here as I believe it talks majorly about savings and investments.

Five Laws of gold:

I. 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.

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

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

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

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

Want to keep your money secure? These 5 laws of gold will help make that possible! Share on X

That’s the end of today’s lessons. We have 3 cures to go and I hope we’ve started applying these lessons to our finances? See you next Friday as we continue the series!