The Richest Man in Babylon by George S. Clason has sold over 4 million copies. In the second chapter it explains the seven cures for a lean purse.
In this chapter, the richest man in Babylon, Arkad is teaching a group of men about the seven cures for a lean purse. These are seven ways for the men to begin building the riches they want. The lessons are based on Arkad's own journey into wealth.
Seven ways to make your purse fat also known as making more money.
First Cure : Start thy purse to fattening
This first cure in the book is, "For every ten coins thou placest within thy purse take out for use but nine." In other words, this means to spend only 10% of each earning/income you earn. For every paycheck, cash or any form of money - spend it but 10% needs to be put aside to save.
Second Cure: Control thy expenditures
The second cure in the book is, "Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay for thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings." This lesson talks about the way we like to please our spending with things one may not need. Arkad, the richest man in Babylon, talks about the way people confuse luxury spending with necessity spending. In other words, this cure is suggesting to keep a budget to help build wealth on the side.
Third Cure: Make thy gold multiply
The third cure is, “to put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, stream of wealth that shall flow constantly into thy purse.” This is advising to make money work for you. Instead of letting it sit there it can be invested to produce more money. The extra money created from making money work for you can also be re-invested and make even more money. Eventually, the cycle goes on and money continues to work for you without you having to work.
Fourth Cure: Guard thy treasures from loss
The fourth cure is, "Guard thy treasure from loss by investing only where thy principal is safe, where it may be reclaimed if desirable, and where thou will not fail to collect a fair rental. Consult with wise men. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments." This cure advises to guard money from loss by making smart decisions. Seek advise on money from the ones who are experts or who have a track record of making profit. It also advises to not get carried away with, "Get rich quick schemes."
Fifth Cure: Make of thy dwelling a profitable investment
The fifth cure is, "Own thy own home." This cure is advising that owning your own home is something that unites a family and bring joy. Instead of paying rent in a place where there isn't room for growth, one can buy land or a home to do as one pleases. Towards the end, Arkad explains that owning a home can help reduce the costs of living and allowing more room to enjoy other pleasures. (Every case can be different depending on house loans, payments, interests and income.)
Sixth Cure: Insure a future income
The sixth cure is, "Provide in advance for the needs of thy growing age and the protection of the family." This cure is to have wealth built and ready for the family once the head of household (parents) are older and can no longer work for a living. Another case is if the situation may arise that the head of household dies and the dependents have little to no means to survive. It can be a difficult task dealing with a situation of elders not being able to provide for themselves or children being left without a way to survive. This cures advises of taking care of possible scenarios ahead of time before having to face them. Make a plan to have money saved or investments that can take care of you or your family in case a possible scenario previously mentioned occurs.
Seventh Cure: Increase thy ability to earn
The seventh cure is, "Cultivate thy own powers, to study and become wiser, to become more skillful, to so act as to respect thyself." This means that one must continue to learn and engage with their skills and talents. Continue to use the brain, improve on current skills and gains new ones. Make definite goals with purpose and desire. If one has respect for themselves they will invest in their self-development.