Nikhil Kumar
I've made 100s of financial sins and when I decided to get my life together, I started learning about Personal Finance. I've read 100s of Books and have watched hours of videos. Here, I will share my mistakes and learnings with you.

How to Grow your Money in 2020 – 5 Laws of Wealth

Everyone needs money but only a few get hold of it. Even though people earn money in their life, you will come across lots of people who are always broke no matter how much they earn. On the other hand, some people constantly grow their money regardless of how low they started.

Here are 5 laws of Wealth to grow your money. I have taken these points from The Richest Man in a Babylon by George S. Clason published in 1926. This book is written in an ancient way but all of the secrets or laws are applicable in 2020. I started reading this book a few days ago and found this small book to be more specific than the other books I had read.

  1. The First Law of Wealth to Grow your Money

    “Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.”

    This means that you should save at least 10% of what you earn. This will create a valuable amount of wealth to invest which will ensure the future and safety of the family in case of any misfortune. If you make this a habit, gold (money) will come gladly to you that too in an increasing quantity.

  2. The Second Law of Wealth

    “Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.”

    Clason has called gold (money) a “willing worker” who will work for you to create more wealth. In simple words, if you invest your money wisely, you will be in profit which means your money worked for you and created more of it. With the passing years, money multiplies itself in a surprising way. But most of the people never get to do this because they haven’t really thought about the 1st law – they never save money to invest.

  3. The Third Law of Wealth 

    “Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.”

    The money will be attached for the protection of its owner if invested wisely with the advice of people who have real knowledge of handling the money. Since the book was published in 1926, people didn’t have the internet to learn new things. They had to be dependent on other people. But with the internet, information is available for free and you can learn from many resources. 

  4. The Fourth Law of Wealth

    “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 who are skilled in its keep.”

    We can count this as a continuation of 3rd law. If you invest your money in things you don’t understand, you will probably lose your money. Firstly, you must learn and gain some skills in your area of investment. Don’t just take your money out because some salesman in formal attire told you to invest in something. 

  5. The Fifth Law of Wealth to Grow your Money

    “Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.”

    This is for people who are always looking for get-rich-quick schemes. As soon as the word goes out that you are looking for investment options, scammers and tricksters start approaching you. They show you the dream of impossible returns on investments. You need to understand there’s no shortcut or quick way to get rich. It’s a long road. Invest wisely. 

I know 90% of readers aren’t going to follow these. But I strongly suggest following some of these laws in their life. This is just a small piece of knowledge from The Richest Man in a Babylon. I strongly recommend reading this book. You can buy this from Amazon here: https://amzn.to/2Ni9LZN
Amazon India Link for Indian Users: https://amzn.to/2FoVne5

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Nikhil Kumar

A personal finance enthusiast. I've made 100s of financial sins and when I decided to get my life together, I started learning about Personal Finance. I've read 100s of Books and have watched hours of videos. Here, I will share my mistakes and learnings with you.

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