We live in an impatient age, and when it comes to money we want more of it, today, not tomorrow. Be it deposits for mortgages or clearing the credit cards that waste our energy after we stop enjoying the things we buy with them, as soon as possible. When it comes to investing, we want easy picks and quick returns. Hence the current mania for crypto-currencies. Why invest in nanotechnology or machine learning when Etherium is locked in an endless upward spiral and Bitcoin is the gift that keeps on giving?
A century ago, the American writer George S. Classon took a different approach. In The Richest Man in Babylon he gives the world a wealth – literally – of monetary policy based on things that may seem outdated today: caution, prudence and wisdom. Clausen used the wise men of the ancient city of 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 visible.
Take the five laws of gold, for example. If you want to manage your personal finances wherever you are in life, here are some tips for you:
Law No. 1: Gold is a property for their future and for their families, with joy and in increasing quantities, by anyone with at least one tenth of their earnings. In other words, save 10% of your income. The lowest. Save as much as you can. And that 10% is not for next year’s vacation or a new car. It’s for the long term. Your 10% may include your pension contribution, ISA, premium bonds or any type of high interest / restricted access savings account. OK, interest rates for savers are now at historic lows, but who knows where 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 for the wise owner with perseverance and contentment to find profitable employment for it. So, if you want to invest instead of saving, do it wisely. There is no crypto-currency or pyramid scheme. We are focusing on the words “profitable” and “employment”. Your money works for you but remember that the best thing you can expect for this side of the rainbow is fixed income in the long run, not a lottery win. In reality it probably means shares of an established company that pays regular dividends and a steady upward trend in the share price. You can invest directly, or through a fund manager in the form of a unit trust, but before splitting with a single penny, see Acts 3, 4 and 5 …
Law No. 3: Gold clings to the protection of the careful owner who invests it on the advice of wise men to manage it. Before you do anything, talk to a qualified, experienced financial advisor. If you don’t know one, do some research. Check them out on the internet. What skills do they have? What kind of client? Read reviews. Call them first and feel what they can offer you, then decide if the face-to-face meeting will work. See their commissioning system. Are they independent or affiliated with a specific company, under a contract to push that company’s financial products? A decent financial advisor will encourage you to get the basics: pension, life insurance, living somewhere, emerging markets and space travel before you invest. When you are satisfied that you have found a mentor whom 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 will be with the same adviser for many years.
Law No. 4: Gold is removed from the business or purpose for which it is invested, with which they are not acquainted or which is not approved by the persons skilled in its preservation. If you have an in-depth knowledge of food retail, invest in supermarket chains in any way that increases market share. Similarly, if you work for a company that has an employee share ownership scheme, it means taking advantage of it, if you are sure that your company has good potential. However, you should never invest in a market or financial product that you do not understand (remember the crash!) Or cannot fully 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 are not in a hurry, tell them to send you to someone like that. After all, no matter how great the potential return, stay away from something you’re not sure about.
Law No. 5: A person who wants to make an impossible profit or who follows the tempting advice of deceivers and conspirators or who believes in his own inexperience is robbed of gold. Again, the fifth law follows the heels of the fourth. If you start searching the internet for financial advice and wealth creation ideas, your inbox will soon be filled with “tricksters and conspirators” if you invest £ 999 in their “system” to turn £ 1 into X 1XXXXXX. Chicago Mercantile Exchange. Remember, the only one who makes money in the gold rush is the one who sells the shovel. Buy the wrong shovel and you’ll quickly dig yourself into debt. You don’t pay for a system with no proven value; By following this you will probably lose a lot more than the price you paid for it. At least you should check the actual review of the product. And never buy a system, investment vehicle or financial product from an organization that is not registered with the National Watchdog, such as the Financial Conduct Authority for the UK.