We live in an age of impatience, and when it comes to money we want it now, not tomorrow but today. Whether it’s deposits for a mortgage or clearing those credit cards that soup our energy long after we stop enjoying what we bought with them, the sooner the better. When it comes to investing, we want easy picks and quick returns. So the current mania for crypto-currencies. When Ethereum is locked in an endless ward upward spiral and Bitcoin is the only gift that will invest in nanotechnology or machine learning, why?
A century ago, the American writer George S. Classon took a different approach. In the richest man in Babylon, he gave the world a wealth of wealth – literally – monetary policy based on things that may seem old-fashioned today: caution, prudence and wisdom. Clausen used the wise men of ancient Babylon as spokesmen for his financial advice, but that advice is as relevant today as it was a century ago, when the Wall Street crash and the Great Depression were in full swing.
For example, the five laws of gold. If you have your own personal finances no matter where you are in your life, here it is:
Law No. 1: Gold comes with joy and in excess which keeps at least one tenth of their income to build a property for their future and family. In other words, save 10% of your income. Minimum. If you can save more than that. And that 10% is not for next year’s vacation or any new car. This is for the long term. Your 10% may include your pension contribution, ISA, premium bonds or any type of high interest / restricted access savings account. Well, the interest rates of savers are now at historic lows, but who knows who they will be in five or ten years? And compound interest means your savings will grow faster than you think.
Law No. 2: Gold works diligently and satisfactorily for the wise owner who finds lucrative employment for it. So, if you are looking to invest rather than save, do it wisely. There is no crypto-currency or pyramid scheme. We are focusing on the words “profitable” and “employment”. Make money for yourself but remember that the best thing you can expect from this rainbow is a long term fixed income, not a lottery win. In reality, this means that the shares of established companies provide regular dividends and a steady upward trend in share prices. You can invest directly in the form of a unit trust or through a fund manager, but before participating with a single penny, see Acts 3, 4 and 5 …
Law No. 3: Gold is bound by the protection of the careful owner who invests it on the advice of wise men in managing it. Talk to a qualified, experienced financial advisor before you do anything. If you don’t know, do some research. Check them out on the internet. What skills do they have? What kind of client? Read reviews. Call them first and get a feel for what they can offer you, then decide if a face-to-face meeting will work. See their commissioning arrangements. Are they independent or affiliated with a specific company under a contract to push the company’s financial products? Pensions, life insurance, to survive somewhere: Any suitable financial advisor will encourage you to get the basics in place before moving on to investing in emerging markets and space travel. When you are satisfied that you have found a mentor you can count on, listen to them. Trust their advice. But review your relationship with them at regular intervals, say annuals, and look elsewhere if you’re not happy. Chances are, if your verdict is correct in the first place, you’ll stick with the same consultant for the same year.
No. 4: Gold moves away from those who invest in business or purposes for which they are unfamiliar or who are not approved by its skills. If you have in-depth knowledge about food retail, invest in an overall supermarket chain that is increasing market share. Similarly, if you work for a company that has an employee share ownership project, you can be sure that your company has good prospects. However, you should never invest in a market or financial product that you do not understand (remember the crash!) Or cannot do a thorough research. If you are tempted to try your hand at currency trading or alternative trading and you have a financial advisor, talk to them first. If they do not speed up, ask them to refer you to the one who is there. Above all, be clear about what you are not sure about, regardless of how big the potential income is.
Law No. 5: The one who seeks the impossible earnings or the one who follows the tempting advice of cunning and schemer or who relies on his own inexperience to surpass gold. Again, the fifth law follows the fourth heel. If you start scrutinizing the internet for financial advice and wealth creation ideas, soon your inbox will be filled with “tricks and schemers” with the promise of the world if you invest 1 999 in their “system” to launch “1K £ 1XXXXXX” Chicago Mercantile Exchange. Remember, the only person in the gold rush who earns money is the one who sells the shovel. Buy the wrong shovel and you will quickly dig yourself into debt. You will probably lose a lot more than the price you paid for it. At the very least, you should check the original reviews of your product.