7 Rules of Wealth

Last time I spoke about saving 10% of your income but said that I would talk about what happens when 100% of your income is not enough – ie you don’t earn enough to save this amount. I will talk about that when we get to “manage” today, but there are 6 other rules of wealth you need to know to not only get yourself out of debt but to secure and grow your wealth to heights you may not have thought possible. Some of the language may be archaic, but you should get the idea.

In this week’s deep dive, I will look at the 7 Rules of Wealth aka The 7 Cures for a Lean Purse and are taken from the book The Richest Man in Babylon. And here they are …


This is where your journey to wealth begins. For every 10 units of money you receive, only use 9 for spending and keep the other 1 for you and your future. If you spend less than you bring in, you will grow a fat purse in time.

Which do you desire more? The gratification of desire, a fancy watch, better clothes or a nice car? Or more substantial things like land, gold and passive income? The coins you spend bring the former. The coins you keep build the latter.


This may seem boring, but if you ever find yourself saying “How can I keep 1/10 when I don’t earn enough to cover my expenses” then you don’t know enough about where your money goes.

Don’t confuse your desires with necessary expenses – that “stop for a coffee on the way” or that “treat you think you deserve” or that “I’ll put it on my credit card because I will be able to pay it off later” thing. You and your family will always have more desires than your income will ever satisfy.

There are limits to your time, to your strength, to what you can eat, how far you travel and how much zest you enjoy life. And so there is with money. Weeds grow in an untended garden, as do desires in you if there’s a possibility they can be met.

Take account of where you spend every coin – keep a log for 30 days and list everything – and I mean EVERYTHING – and then go through this list and identify the necessary costs (like utilities, mortgage or rent, etc). Your list is entirely up to you and you can adjust it over time. But everything that’s not necessary is money that could be working for you for your future wealth.

Budget carefully so your necessary expenses fit within 90% of your income and save the rest.

And if it’s still not enough?

Well, I’ll come back to this later.


Now you’ve mastered saving and budgeting it’s time to take the next steps to greater wealth.

I touched on this previously and as your savings grow as you save into your financial freedom account (or FFA as I call it) you need to start making these new “employees” work for you.

That’s right – we’re going to make your money work for you instead of just you working for your money.

This is where you need to do some work. You need to study and adopt ways to make your money grow, through interest earned or greater returns from investments. You won’t get much – if any – interest from a savings account so you need to study how investments work – really study them – so you reduce the risk of losing your investment.

You could look at money lending, stock investing, crypto, businesses or many other ways to make money. But research them. Pick the vehicle that’s right for you, and learn from people with greater experience than you.


As Arkad says in The Richest Man in Babylon: “Misfortune loves a shining mark. Gold in a man’s purse must be guarded with firmness, else it be lost. Thus it is wise that we must first secure small amounts and learn to protect them before the Gods entrust us with larger.”

And this taps the idea of manifestation too – you attract what you are. If you can demonstrate you can build even a small wealth initially you change your vibration to that of attraction and more wealth comes.

I’ve lost money on investments as has every investor out there, but they know that this can happen and adopt strategies to minimise this risk – like not investing more than they can afford to lose. But they don’t stop. They learn from it, study more and come back stronger. The richest people you can think of have probably lost more than you can imagine, but they are wealthy because they keep employing their money to go further.

But as I said last week, you need to know the 5 rules of money so you don’t break them and lose your hard-earned FFA. Guard your money and invest it where it is as safe as you can ensure, where you can reclaim it if needed and where it earns a good return. Consult with experienced people in this – work with brokers and learn the principles yourself. Wisdom protects far more than faith.


Let’s turn our attention to that other 90% you’ve been spending.

As it says in the book if you can use any of the 90% you’re “spending” to turn into profitable investments without detriment to your well-being, then doing so will accelerate the growth of your wealth.

If you’re renting a place right now, then this money is going to make somebody else wealthy. They are using the “multiply” principle I mentioned before and you are the one doing the multiplying for them. Furthermore, since you are renting you don’t have long-term stability. You don’t know when or if you will *have* to move.

But if you found a way to buy a property, then this becomes your asset. Sure, you have to pay the mortgage, but you have to pay the rent anyway. Usually, you need some capital up-front, but if you demonstrate you have this then lenders will be ready to lend you the money to cover the rest of the debt. True, you are still multiplying their money as they charge interest, but it is in exchange for a tangible asset that provides security and future value to you and your family. And the mortgage payments usually go down over time, so your cost of living will also reduce.


They say there are only two guaranteed things in life. Death and taxes.

Let’s speak of the first here since the other is the province of the 90% you use every day.

You are getting older – even as you read this – and you should prepare for the future. Prepare to provide for yourself and your family when you may not be able to go about and earn a wage. You need to ensure you have an income for these days.

There are numerous ways to do this, and keep in mind the laws of gold I wrote about last week as well as the preceding principles in this email. You can look into investment vehicles such as pensions or 401ks, property, land, trading or other investment vehicles.

Some of these have small returns, but the power of compounding and adding a small amount to them regularly does yield wonders if you start early. People do retire on generous sums even if they only had modest incomes throughout their lives because they looked ahead and prepared for their old age.


The last principle is not about the money itself. It’s about you (and there’s a free opportunity for this at the end of this email).

I’ve touched on this throughout this email, on my blog and in my YouTube videos – you need to learn, study and develop your own financial skillset to better enable you to develop and grow your wealth over time.

When I began my journey I only knew about pensions – retirement investments – but have learned more and now better understand property and market trading. As new skills are learned, my ability to make better decisions and create a balanced financial plan improves. And, while I once found the subject boring, I am excited to learn new ways to make my little employees work for me now.

Don’t look for debt when you’re short of cash. If you aren’t able to repay the debt then it is unlikely you’ll be able to secure the loan in the first place. And if you do, you only create more demand for your 90% instead of addressing the root cause – to earn more money.

As it says in The Richest Man in Babylon: “Preceding accomplishment must be desire. Thy desires must be strong and definite. General desires are but weak longings. For a man to wish to be rich is of little purpose. For a man to desire five pieces of gold is a tangible desire which he can press to fulfilment. After he has backed his desire for five pieces of gold with the strength of purpose to secure it, next he can find similar ways to obtain ten pieces and then twenty pieces and later a thousand pieces and, behold, he has become wealthy. In learning to secure his one definite small desire, he hath trained himself to secure a larger one. This is the process by which wealth is accumulated: first in small sums, then in larger ones as a man learns and becomes more capable.”

Remember, learning doesn’t just have to be about money – it can be skills in your current profession. The more you know, the more valuable you become.

If you are struggling financially, you may need financial help (for example if you have debts). Remember, this ties in with the third law from my last email about nurturing your money and working with professionals who can guide you skilfully on the right path. You don’t need to be embarrassed – asking for help is a sign of strength showing you recognise the issue and want to make a change. This plan is necessary to fully apportion your 100% so that you retain 10%, pay your debts in a timely manner, still meet your daily necessities and still get to enjoy some pleasures too. The Richest Man in Babylon cites 20% as an amount to allocate to debts so they get cleared quickly but your circumstances may dictate a different amount.

You may also need to seek alternative income or change things in your life so your expenses fit your income. This may require radical change and deep thought (are those costs really necessary or are they ideological?)

Remember: Your future wealth is your goal and your reward.

And if you’d like to listen to me tell you about this with some nifty illustrations an alternative summary and a few outtakes, check out the video below.

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