Pursuit of wealth

One of the books that helped change my life the most and that I loved reading right away is "The Richest Man in Babylon" by George S. Clason (click on the title to buy it on Amazon). I want to be clear from the outset: any book I recommend on this educational journey of mine, should you decide to buy it, will not earn me a penny. On the other hand, I am sure that you will receive great benefits from reading them.

There is one sentence that turned a switch on in my consciousness. It is a sentence during a dialogue between two friends, Bansir and Kobbi in the first chapter: "the reason we never found wealth is because we never looked for it". At the time, I was not yet trading for a living. Partly because I wasn't able to make consistent gains, month after month, but also partly because my capital was modest.

I worked as a dealer, selling stamps and coin collectables. Things weren't going badly for me, but the salary I was getting was barely enough to make ends meet. And all I knew how to do was complain about the fact that "I worked all the time, but there was never anything left in my pocket". That sentence had thrown reality in my face. The only thing I had to complain about was my immobility. I didn't like my situation, yet I wasn't doing anything to change it.

This is what I also see in friends and acquaintances who struggle with their salaries and with making ends meet. These people live a life they don't like and passively accept it as if there were no solution to their condition.

"How's work?"

"Tell me about it, in this economy, I don't even know if the money will last until my next paycheck."

"Why don't you think about how to improve your financial situation?"

"Eh, you're quick to talk, you're rich (???), I break my back all day and don't have a dime, what do you want me to think about."

Apart from the fact that I'm not rich, this dialogue reveals the kind of mentality of most (if not all) those who have financial problems or who have to break their backs in order to not have them and who accept this condition, not even thinking about it, not even looking for a solution to their problems.

Going back to the sentence in the dialogue at the beginning of the book, "the reason your situation hasn't changed is because you've never tried to change it.” The first thing you must do is change your "loser" mentality and set your goal firmly in mind. You must be willing to make any sacrifices to achieve it. If you do not feel a desire to change, then your situation will not change. Luck should be sought, not passively waited for.

At this point, it is up to you to get started. The first step to take once you receive your paycheck is to pay yourself first, before anything else. Such a statement may sound strange, how can we pay ourselves? "A portion of everything you earn is yours to keep. Set a reasonable portion of your earnings, making sure it is not less than the tenth part, and keep it. Modify your other expenses if necessary but first, keep that amount. ”

But how, you will say. I can't make ends meet and now I should also take 10% off my salary? It seems absurd. That's what I thought.

"What each of us calls necessary expenses will always increase to equal our income unless we do something about it. Do not confuse necessary expenses with your desires [...] There are often some expenses, now taken for granted, which can be wisely reduced or eliminated."

I did something that very, very few people do. I drew up a family budget. I created a table where every month I entered the income and expenses in their various items, even the smallest and most insignificant. At the end of the month, I had the whole account, all my income and all my expenses.

The first month my budget was close to zero, that is, the expenses represented practically the total income. So I circled all the items that weren't essential and that, if I didn't make those expenditures, I could still live comfortably, paying rent, utilities, food, and everything else that was essential.

Those circled items accounted for a good chunk of my outings. Giving them up wasn't easy and, more importantly, it wasn’t enjoyable. There were dinners at pizzerias, TV subscriptions... in this way the quality of my life would have gone down a lot. But if I wanted to change things, if I wanted the wealth that would enable me to afford even the superfluous, I had to make that sacrifice.

The first months were hard, very hard. Then, slowly, as time went by, I began to get used to it and after that, it didn't weigh on me as much. On the contrary, seeing my capital grow every month by 10% of my income gave me a great feeling of satisfaction. For the first time in my life, I was saving money and that made me feel good.

So, keep a family budget where you enter all the items in and out. Evaluate all your expenses well and eliminate those that are unnecessary, even if they generate pleasure and you find it hard to give them up. Take that 10%, every month, and put it away in savings.

Most people underestimate the importance of drawing up a family budget, but I assure you that if you do, you will develop a different mindset that will help you achieve your financial goals.

This is the first step you need to take. Do it now, not tomorrow or a week from now. Now.

"Like a tree, wealth grows from a tiny seed. The first coin you save will be the seed from which your tree of wealth will grow. The sooner you plant your seed, the sooner the tree will grow. And the more faithfully you nurture and water that tree with substantial savings, the sooner you will enjoy, satisfied, its shade."