If you’re looking for practical tips and advice on Private Lending and how to keep your money safe as a Private Lender, then you are in the right place. But if you want to learn from my mistakes so you can avoid them, well then pull up a chair and pour yourself a drink my friend, because this podcast is just for you!
In today’s episode, we will continue to explore the lessons found in the book “The Richest Man in Babylon”. Today we will be discussing the 3rd Law of Wealth.
Today will be another quick episode, but I give you full permission to get off the treadmill or elliptical as soon as this episode concludes in just a few minutes.
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Today’s topic is another lesson from the Richest Man in Babylon written by George Samuel Clason. You can go back and catch up on the first four installments in:
Episode 114: First Cure for a lean account – save 10% of everything you earn for the future
Episode 116: First Law of Wealth – Wealth comes to those who reserve AT LEAST 10% of their total earnings towards building their future financial independence/fortune.
Episode 118: Second cure for a lean account – control thy expenses
Episode 120: Second Law of Wealth – “work hard for your money, but then make your money work harder for you
Episode 123: Compound Interest the 8th wonder of the world
Today is the sixth installment in which we will be discussing the 3rd Law of Gold (wealth). And like so many lessons in life that we should heed, the principle is quite simple, but we humans seem to have trouble with the execution.
Let’s get down to the Brass Tacks of this Episode and discuss the 3rd Law of Wealth, which state:
Gold clings to the protection of the cautious owner who invests it under the advice of men wise in its handling.
And then the book goes on to say:
“Gold, indeed, clings to the cautious owner, even as it flees the careless owner. The man who seeks the advice of men wise in the handling of gold soon learns not to jeopardize his treasure, but to preserve in safety and to enjoy in contentment its consistent increase”
If you follow the lesson sequence from the book, you are saving 10% of your income to invest, you are controlling your expenses – living below your means, looking to make your money work hard for you and now we come to seek advice from people who are wise in the handling of money: People who know who to Protect Money (Return Of Investment) and people who know how to make it multiply (Return On Investment).
Those just happen to be Private Lender No. 1 and 2 Core Value
Rodan (the spear maker) visits Mathon – a seller of jewelry and fine fabrics, also the gold lender of Babylon.
“Seek to associate yourself with men and enterprises whose success is established so that your money may earn liberally under their skillful use and be guarded safely by their wisdom and experience”
· Loan to flippers to flip
· Loan to landlords to accumulate rentals
· Make acquisition/bridge loans to owner finance sellers
· I like to look for grey hair, but I have and will continue to lend to experienced youth
· Never lend money to somebody who “needs this deal”
· Don’t lend to somebody or a deal a hard money lender won’t finance
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That’s gonna do it for Episode 127 and just a few final thoughts:
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So, as I sign off I’d like to say in addition to self-awareness, I wish you safe and prosperous Private Lending.
I’ll catch you on the next episode.