What Really Makes The Rich Get Richer And The Poor Get Poorer – The Five Laws Of Gold

What Really Makes The Rich Get Richer And The Poor Get Poorer – The Five Laws Of Gold


In 1926, George Samuel Clason published
a series of parables that was set in the ancient city of Babylon. These parables
became known as a book called The Richest Man In Babylon, and it has become
a classic in financial literature. If you’ve never read the book, you’ll be
blown away by the tried and tested lessons it presents for accumulating
wealth and riches. The story begins with a character called Bansir who was a
chariot builder and kobbi who was a musician. The two had become the best at
their craft but yet were poor and had no money. So they went out to seek the
advice and wisdom of their childhood friend Arkad, who in stark contrast had
grown very rich and amassed large fortunes. Arkad was the richest man in
Babylon, and despite spending liberally and giving generously to charity, he
seemed to have an endless amount of gold and his wealth kept growing.
So Arkad told his two friends a story, he said he was once a poor man too, a poor
scribe actually who made a deal with a rich man to find out the secret to
wealth accumulation in exchange for his work on a clay inscription. The rich man
agreed, and gave him a very valuable lesson, he said “I found the road to
wealth when I decided that a part of all I earned was mine to keep and so will
you” this is a very powerful lesson and it’s the premise upon which every rich
person has built their wealth. Arkad, the richest man in Babylon, didn’t make
his fortune by spending more money than he could afford. He became rich by
setting aside 1/10 or 10% of his earnings, and invested it in ways that
were sure to produce more income. This is the first law of gold, to put 10% of your
income aside for investing. The book says “Gold comes gladly and an increasing
quantity to any man who will put aside not less than 1/10 of his earnings to
create an estate for his future and that of his family”. This law ties into the
principle of paying yourself first. Rich people understand this very well paying
yourself first is a proactive approach to financial freedom. A lot of people
constantly complain about how little money they have, they’ll always say, no
matter what I do I always have nothing left at the end of the month or they’ll
say something along the lines of my job isn’t paying me enough. Although these
points are valid, if one actually assesses where their money is going
they’ll realize that most of the so-called “priorities” such as weekly
dinners out, or going out every week are actually not necessary expenditures
after all and are in actual fact a huge toll on your income statement. So what
you should do instead is put 10% aside every month, the moment you receive your
paycheck before you pay the bills, rent, utilities, your mortgage, Netflix, make
sure you’ve set aside 10% the sooner you get started the better off you may be,
and the larger your savings and investment funds will get. Not only will
you take advantage of compounding growth to help grow your money faster,
but should a major financial crisis occur such as a huge medical bill, a
large car repair, or in a worst-case scenario a layoff, you won’t be as scared.
The second law of gold is to invest your money.
The book says “Gold laboureth diligently and contentedly for the wise owner who
finds for it profitable employment, multiplying even as the flocks of the
field.” Gold and money indeed is a willing worker, the richest man in Babylon
learned early on how money works and how to put his money to work for himself. He
was able to control his expenses and learn the difference between necessities
and luxuries. A lot of people struggle differentiating the two, the rule of
thumb when it comes to luxuries is simple, if you don’t need it don’t buy it!
it really is that simple. As your savings increase you can start looking for
profitable safe investments to put your money into. There are many ways you can
invest your money such as real estate, stocks, bonds, businesses, and so on. You
should see your money as little soldiers going into war and bringing back bounty,
the more soldiers you have the more bounty and loot they’ll bring back. But
before making any major investment, you must first be absolutely certain about
where you’re putting your money. Make sound investments and your money will
come back in abundance, which brings me to the third law of gold, seek first
advice or as I like to say, seek wisdom first before making an investment. The
book says “Gold clingeth to the protection of the owner who invested under the
advice of men wise in its handling.” Look, you worked hard for your money right, and
you shouldn’t lose even a single penny, so why would you trust your own
inexperience to make sound investments. This is
exactly what a lot of poor and some middle-class people do, they make
investments out of their gut feelings, or things they might have overheard from
their friends, colleagues, or even on TV or the radio. What always eventually
happens is they lose their money, or what they thought was a sound solid
investment was actually a scam. Very rarely would you hear that the
investments were successful or that they made any money. The rich on the other
hand seek advice from professionals wise in the handling of money. Before making
any major investment, just like you wouldn’t trust a cook to perform heart
surgery on your chest, you should also not trust people who are not skilled in
the ways of making and handling money, to advise you on where to put and invest
your hard-earned money. This brings me to the fourth law of gold, “Gold slippeth away
from the man who invests it in businesses or purposes with which he is not
familiar, or which are not approved by those skilled in its keep.” I think the
best way to illustrate this point is with the help of my friend John. So John
has been following and practicing the first law of gold for one year now, and
has so far saved up a considerable amount of money, a total of ten thousand
dollars. So my friend John is a reasonably smart guy, he reads a couple
books a year, and watches TV and YouTube videos on his favorite subject, investing
and making money. Although like I said, John is a smart guy, he has a very acute
flaw in investing, let’s call it his Achilles heel. These are the kind of
investments John and a lot of poor people subscribe to. The moment they hear
a “good investment” on TV or radio they jump on it right away,
you’ve heard it all before, this is one real estate opportunity you can’t afford
to miss, or invest in this stock it’s too big to fail,
two months later guess what? The basic rule to follow when investing is very
simple, if you don’t understand it don’t invest in it, period! or seek advice like
the third law suggests from men wise in keeping and making money. This is what
John should have done instead of investing in bad stocks and real estate.
He should have instead looked for and sought the advice of a person who is
succeeding and making money in real estate or stock investing. So now my
friend John is broke, and has about five hundred dollars left in the bank, but not
all hope is lost. In his moment of misery, he
conjures up a brilliant plan to make back the money he lost and then some, his
plan is simple, brilliant, and cunning, in his eyes it
can’t fail. John plans to go to Vegas, yeah the gambling city, bet on a couple
of games and make back the money he lost. he’s absolutely sure and certain that he
can make back the money and then some, which brings me to the fifth law of gold
“Gold flees the man who would force it to impossible earnings, or who follows the
alluring advice of tricksters and schemers, or who trusts it to his own
inexperienced and romantic desires in investment.” You see, in John’s attempt to
make back the money he lost, he thought the fastest and easiest way to make back
the money was to gamble, although very rarely some people do make a lot of
money gambling, it wasn’t John’s lucky day. My friend
John learned two very important lessons that year. One, what happens in Vegas stays
in Vegas. And two, there’s no quick way to become rich. The lessons that Arkad
taught his friends are the premise of the book, and they are the lessons of
wealth building habits that I believe every rich person has followed to
accumulate their wealth. These lessons have helped millions of people, who
practice them to become financially stable and wealthy, and I believe these
lessons will help you build a firm financial foundation. Thank you guys so
much for watching and I’ll see you on the next one.

100 thoughts on “What Really Makes The Rich Get Richer And The Poor Get Poorer – The Five Laws Of Gold

  1. If John though it was easy to flip $500 into $10+k, why didn't just go to Vegas initially flip $500 to let's say $8500 because nothing goes as planned then aggregately he would have $18k in the bank? The logic for the irrational never seems to amaze me.

  2. Life Tips: Read more & watch less TV, invest in a education, live frugal, study wealth & investing, don't get married, get a library card & use it, avoid long distance relationships & go for local people, consider tech/trade school, never co-sign on any kind of loan, be careful who you bring into your life, take good care of your health, pay off debt as soon as possible, buy a house if you can afford it, max out IRA Roth every year, listen to positive audio books from the library, pay bills on time & always be improving your credit score, never date or marry a illegal immigrant that needs a green card, don't break the law, avoid hard drugs & those who use them, watch more documentaries, max out 401 K at work, always have at least $1000 in a emergency fund, never stop improving, avoid lending money, hang out with successful people, write down goals, think twice before bailing someone out of jail, be positive, brush & floss daily, go Mgtow.

  3. Amazing advice, but with so many scammers how you can really choose.. real estate investment was amazing at one point, yet even that's can be destroyed at any moment due to the world financial crisis..

  4. When you spend your entire earnings on Food and Shelter, you are a slave. That’s what slavemasters provide to their slaves. But money shouldn’t be your God in the first place.

  5. You also have to point out that this is mostly a zero sum game. Not everybody can be rich, another ones profit is someone else's lost. Wealth isn't created out of nothing, and someone has to work for somebody not everyone can just invest and make money grow out of nothing. It's basically everyone fighting for that slice of a pie and not everyone will have an equal slice. So if everyone follow your advice there will always be someone who will still be poor.

  6. I dont wanna be rich though i just wanna be debt free and own a small business and not have to work for anyone else, i dont have to have super fany things, i wanna buy land somewhere pretty and go off grid and have a homestead

  7. Follow this ONE BIG THING and that is to:
    AVOID MONEY TRAPS
    1. Buying luxurious cars
    2. Buying Too expensive house
    3. Spending expensive significant things
    4. Spending too much going out for leisure
    5. Be a stuff collectors.

  8. Yes
    This videos are for loosers
    U only live once
    When you died
    Thats it
    The savings in your bank will not resuscitate you

  9. I think this is one of the three best books on personal finance.
    It doesn't tell you what to invest in but it gives you an insight into the mentality you will need to get to where you want to be.

    The other two key books for me were Dave Ramsey's Financial Peace and Jason Kelly's Niftiest Little Guide to Personal Finance.

    There you have it, I spent less than $50 on these books. Put the plan into action and you will reap a million dollars in benefits!

    Don't get me wrong, the path will not always be easy. Others may mistake your frugality for cheapness. However, if the going gets tough, your savings will save you!

  10. But how do I know who is wise in investing so I don’t get screwed over? Like, everyone says they know how to help me and I’m just starting so I don’t know enough to know who to trust. Obviously getting rich quick and gambling are bad ideas, but there are a lot of other ways I could get screwed over. It seems I can’t even really trust my bank. Everyone just wants my money and I don’t know how to properly sift through them so I can keep and grow my money.

    Excuse me while I go work another 14 hour shift.

  11. Don't buy useless crap. Invest what you can in good growth mutual funds and ETF's. Reinvest all earnings which buy more shares. Let compounding do its thing. If you can't afford kids, don't have them. If you get married, you have a 50% chance of getting divorced and losing half your wealth. Choose very wisely.

  12. This a joke? Rich gets rich cause they’re bound for hell and endless torture. Enjoy 30-40 years with your greedy money and not donate to the poor

  13. adjusted for inflation, save 20%, refuse to enjoy yourself, work your life away and and take a dirt nap. Sounds like a blast.

  14. I had a snarky comment about this video then realized there are people who don't understand this. Well played

  15. There is only one rule; poor people buy liabilities, rich people buy assets (Robert Kiyosaki). Everything else is a derivative of that rule.

  16. Wow. This has got to be the worst and most outdated financial advice video I've ever seen.
    * Compound interest? That used to be a thing. It's not anymore. I agree that paying interest on purchases is dumb, but gaining from compound interest only happens if your already rich.
    *The video mentions that your not poor because your job doesn't pay well. Your poor because you spend the money on things you don't need. Millions of people are working for minimum wage. These people are not going out to dinner and buying Starbucks every morning. They are starving and living in their cars. They are having to choose between buying their necessary medications or buying groceries.
    *Ask a financial advisor before making any big investment or decision:
    Sounds like good advice except for one thing: financial advisors have become a scam. Where I live there's a major financial advising firm that is constantly hiring. The place is essentially a call center filled with 18-30 year olds with top notch sales skills. They find and latch on to people who want to better their situation and then sell them the daily special. The employees make quite a bit of commission and their clients don't get much in return. None of these employees have college degrees or financial know how.
    – Investing in the stock market IS gambling.
    – This video makes no mention of how complex money management is in a capitalist society. There are so many factors involved that work against you including psychology, politics, and culture on top of the fact that the system is designed to keep the poor poor and the rich rich.

  17. Story is true but video graphics is with "Western Effects"……Real Babylon was exist in border of Iran & Iraq ….That people is not look like "White people"……..
    But content is good

  18. It all comes down to priorities. Do you prioritize your material wants above your time? Time is the ultimate limited resource. Every purchase you make is essentially traded for time spent toiling away in your day job. Think about it.

  19. the rich ones use their time to create their wealth.
    the not that rich ones sitting here watching why.

  20. I used all £15k of my savings to buy land in Nigeria back in 2006. Just sold last month for £42k. Africa is rising fast!

  21. Don forget to find that balance and live the present moment. I know millionaires who live very frugal lives. You never know when it's your last day so make the most of it 💸

  22. It's called capitalism. Not saying that the alternative political systems are better, though; it's just that we haven't called me up with anything that really works fairly for everyone.

  23. This is common sense information that is written in the Bible. So everyone grab your Bible and start reading. Although, you can do exactly everything the law in the Bible and still struggle. Let's face it trials tribulations and failures success victories and greatness is time and chance to all- seasons. It's like the four seasons the east coast receive each year. The percentage is always different within each season and not just depending on what you have done in those seasons. There are several stories in the Bible that reflects this.

  24. I'm a penny pincher myself but tbh i work very hard and i feel i deserve to eat out a lil. I don't see nothing wrong with treating yourself a little. I want to be happy. So if i gotta big check for the week, more than usual, ima treat myself and my gf to steak or even buy a nice pair of sneakers i want. Don't get it twisted tho. I'm very picky when it comes to spending lol if it ain't on sale i won't buy it. I procrastinated allot with spending except when it comes to beer

  25. Know What You Own … Pay Yourself First … Two Sides to EVERY Trade … Waste Not , Want Not … Never Trust a Banker , Financier , Realtor , or Politician … Wash , Rinse , Repeat … [ Refresh ] … Debt is Not Equity …

  26. So far there’s not one clear way I’ve learned how to get rich and how much he rich gets richer. There’s no mention of income producing assets

  27. the secret is making investments and having savings, forex trading has been a great investment for me so far, it wasn't easy at first but thing got a lot easier coming across mr stephan briggs

  28. These scam videos …
    Treat the poor as disease or sickness….
    While the rich are sick weirdos who have no reason to exist …
    They just abuse and exploit all the natural resources of the planet with no mercy …

    It's the rich that do not belong on Earth … It's the few rich scumbags that humanity needs to rid itself of …
    It's the rich that are parasitical epidemic with nothing but evilness and misery to spread ….

    The rich Should be imprisoned for unjustified privilege …over the rest of humanity…

  29. if i want to buy something i think about it 1-10$ about 1min 10-50$ 10 min something big car etc 2 weeks and if you just 1 time feel like man do i really need this you just dont buy it

  30. Investing advise from professionals 😂
    The problem with most people who invest themselves is they never read the highly regarded investing books and/ or practice what they preach.

  31. My love for cryptos and the technology behind them is huge, that's why I’d want to share this interesting story with as many people as I can. I lost a lot of money and way more than half the value of my BTC which I purchased at $20,425. I was devastated and got desperate seeking options to recover my loss when I stumbled upon comment on how Mr Andrew Feldstein help people on youtube. After considering the odds, I contacted him and the result was life time-changing.

  32. So the video is about tithing. Mystery solved. However the fact is that 85% of Investments lose money so it does no good to tell us that without explaining how to be in the 15%.

  33. Rich people act and spend money like poor people, so they just get richer. Poor people on the other hand pretend to be rich and only get poorer.

  34. I put 3-400$ a month in stocks and etfs and also save extra for emergencies which when it gets big enough I take some out and invest more. All about not spending on stupid stuff

  35. Don’t buy into the mentality that you need the latest and greatest. You are never gonna get where you could if you buy stuff you can’t afford. Invest money and over time it compounds and pays you back. Anyone can get rich but only people who sacrifice the need to buy things to fill up the hollow void of substance

  36. Could tell this was a right wing magical thinking piece in the first 5secs by the salesman tone and cadence. Never mind the content a little later..

  37. My little soldiers marched toward their grave that fateful night. The bloodbath made me wretch. Gamblor and his evil oddmakers be damned to the corners of hell

  38. Im in college and going to trade school whoever saves only ten % of income during career wont retire in early 30s and be able to invest more like save 85 to 90% of income and spend little cash from wallet, in other words don't touch your bank acvount unless it's an investment that will increase your earnings!, house, invest in work business or education.

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