7 Money Lessons from The Richest Man in Babylon

Think it's too late to take control of your money? Think again. Here's 7 simple lessons you can apply to your life today.

Now and then, along comes a book that changes the way you think. For me, The Richest Man in Babylon, was one such book. So you that are inspired into action, this podcast/video/blog edition will share the biggest lessons that I learnt from this classic finance book.

You'll be surprised at how approachable the author's ideas are; financial common sense divided into 7 simple parts. From my experience, I found that the key to applying the principles was to keep it simple, so that I could be consistent. Significant financial change begins with simple steps. Let's dive in!

1. Pay yourself first - “Start thy purse to fattening”

• Learn to see the value of your work, and place a priority on paying yourself first.
• Create a simple system to allocate where your money gets spent. Here's a quick look at how I aim to divide it:
  • 10% = Pay yourself first.
  • 10% = Pay debts (start with most small, expensive, high interest debts first).
  • 10% = Future savings.
  • 10% = Generosity (charity, church tithe, non-profit organisations etc.)
  • 60% = Living expenses, including mortgage. 

2. Live within your means - “Control thy expenditures”

• Don't spend more than you make.
• Either spend less, or earn more.
• Be clear on the difference between a desire and an expense (especially for those of us in business).
• Resist the habit of spending more as we earn more. Just because our income might increase, doesn't mean our spending should.

3. Make money work for you - “Make thy gold multiply”

• Understand compound interest, and how you can benefit from it.
• Bank interest: Consider opening an online high interest account, that you can't access with a ATM card.
• Investments: Only invest after you have saved a reserve of 6-8 months worth of living expenses.
• There are many investment vehicles, choose the one you understand the most (I experimented with Forex, but pursued other things instead).

4. Safeguard your wealth - “Guard thy treasures from loss”

• Have a variety of insurance policies, income protections etc..
• Create financial reserves (emergency funds).
• Avoid investments that sound 'too good to be true' (they probably are).
• Remember "it costs nothing to ask a good friend for counsel".
• Seek advice from people who are experts in their particular field, people who have actually experienced what you’re attempting.

5. Own your own home - “Make of they dwelling a profitable investment”

• Where possible, own your home.
• Be smart about your biggest expense/investment, if it isn’t home ownership.
• Buy a home that is below the maximum you can afford, yet one that you can still enjoy.

6. Have a retirement plan - “Insure a future income”

• It is a reality that all of us will become old, and eventually stop work (eek!!).
• Plan for the day that you do stop working.
• Look at ways to maximise the earning potential of your superannuation (Aus), 401k (USA) or similar.
• Make sure your income will continue work without you having to physically work.
• Consider those who are financially dependent on you.
• Create safety through investment diversity.

7. Invest in your personal development - “Increase thy ability to earn”

• Strive to become wiser and more knowledgeable.
• We live in a very exciting time: the Information and Innovation Age.
• Knowledge is literally at your fingertips, thanks to the Internet.
• This is my approach to running my business: LEARN > EARN > GET > GIVE.

Bonus tips:

• Our ability to handle money successfully, will influence whether our dreams and desires are realised.
• “It costs nothing to ask wise advice from a good friend.”
• Saving money is important, but so is fulfilment. Learnt to enjoy life, without feeling the overbearing pressure to save.
• Paying your debts is a sign that you have respect for yourself (aaw snap!).
• My favourite tip: “The soul of a free man looks at the world as a series of problems to be solved. Meanwhile, the soul of a slave whines, “What can I do?””

Your turn:

• What 2 simple steps can you take, to create sustainable, significant financial change?
• Have you thought to yourself, "it's too late to improve my financial position"? If so, what are 2 attitudes about money, you could change this week?

Disclaimer: This blog/podcast/video book review does not contain financial advice.

Is Your Next Big Thing Waiting? 7 Tips for Time Management with Danny Hile

Read: 4 min   |   Listen: 35 min   |   Watch: 9 min

Too busy to start your side project? Here's 7 keys to get you on track.

Listen to the Podcast interview with time-management expert Danny Hile.

1. Create your personal mission, which will act as a reminder of your personal values in an ever changing world. Your mission statement will guide you and keep you on course, when you need to make tough decisions. Your mission is the very foundation for you to build your time management skills on.
2. Set your own goals, so you can be specific about what you aim to achieve and by when. Everything you want are only dreams until you turn them into specific goals. Goal setting is another one of those important time management skills because it gives you specific targets to work towards.
3. Focus on what you want because you have limited time and resources. You need to be crystal clear about what you want and your path to get there. Often time management skills are undermined because we live in a noisy world, which easily distracts people from working on their goals.
4. Organise your schedule, so you make time for what’s important to you, instead of using that time to work on someone else’s goals. Being organised means you can set up meetings, appointments and set aside time to contribute to your goals.
5. Make your own decisions. Learn to move forward and make better decisions before you take action towards your goals.
6. Act on your decisions because ideas are worthless without action. Once you have made a clear decision, you need to take action.
7. Review your results and progress, so you can reward your achievements, evaluate your progress and address any missed goals. If you missed any of your goals, it’s important to know why and how to improve your chances of success in the future.

Ready to master your minutes?

Danny Hile is generously offering readers and listeners the opportunity to download the first 2 chapters of his book Time to Start. for FREE! 

Enter your details below, and the download link will appear on this page. Enjoy!

What's FIRST for 2017 + the book I read EVERY year!

REPLAY: Show 2016 Who's Boss: Facebook Live

Missed the Live Video session?

Watch the video replay below, and request your FREE Toolkit here!

Add your comments as we go through the video together.

Enjoy, N.
#LivetoAccomplish #2016Boss

Do Talk to Strangers: How to Connect with Anyone, Anywhere.

Kerrie Phipps, the connection master.

In previous episodes we've talked about how kick starting an idea is an exciting process. Then the next one focused on how to keep it going when it becomes hard. That’s why this third episode is important; it’s about discovering how connecting with people can unlock incredible value that goes otherwise untapped.

Kerrie Phipps is a connection-master and has a book out called Do Talk to Strangers, and has been on the speaking circuit overseas and throughout Australia. Kerrie’s message focuses on what it means to connect with others authentically.

Episode Highlights

The 'Asking' model:

A - Awareness: Of yourself, and of others. Are you nervous? Let go, and focus on serving others in the conversation.
S - Start Small: Smile and step out of your comfort zone. Perhaps start by discussing simple yet positive things.
K - Keep Going: Ask questions like "What did you enjoy most about...?" Open ended questions will create momentum.
I - Interest in Others: Make the choice to tune in, and really listen to the other person. Pick up on key words.
N - Natural Confidence: Be secure in who you are. Being open to feedback will help you become the 'best version' of yourself.
G - Gratitude: Look for ways to acknowledge others. Actively show others that you value them, and their ideas.

FREE eBook Download

If we’re honest connecting, can be really difficult. The good new is, it doesn’t have to be. Kerrie has been kind enough to provide my blog readers and podcast listeners with 2 valuable resources that provide us with tools to arm ourselves with. 

We're giving you a FREE 41-page eBook with Kerrie's ‘ASKING Model’ that we featured in our podcast conversation, containing the 6 Steps to connect with anyone, anywhere.

Oh, and as a bonus, you’ll also receive access to Kerrie’s up-close and personal interview with Janet Beckers about the journey of writing her latest book.

Ready to be equipped and challenged? Click here to download (you’ll need to enter your email address).

7-Day Challenge

1. What will you do in the next 7 days to push through your social comfort zone?
2. Will a family member and friend try it with you?
3. At your next party or event, set a goal to talk to at least 2 new people.
4. Can you introduce a work colleague to someone you know, but they don't?
5. Develop your set of 'quality questions' you can use when you connect. Try 3 or 4.
6. Create a short list of topics that you are knowledgeable on.
7. Reflect on what you've learned from talking to strangers, that you would have otherwise never learnt!

In all you do, #LiveToAccomplish, N.