We reside in an impatient age, and when it comes to money we want more of it now, today, not tomorrow. Whether it's a deposit for a mortgage or clearing those credit cards that sap our energy long directly after we stopped enjoying what we bought using them, the sooner the better nft project. As it pertains to investing, we want easy pickings and quick returns. Hence the present mania for crypto-currencies. Why spend money on nanotechnology or machine learning when Ethereum is locked in a endless upward spiral and Bitcoin is the gift that keeps on giving?
A century ago, the American writer George S Clason took a different approach. In The Richest Man in Babylon he gave the entire world a treasure trove - literally - of financial principles centered on things that may seem old-fashioned today: caution, prudence and wisdom. Clason used the wise men of the ancient city of Babylon as the spokesmen for his financial advice, but that advice is really as relevant today since it was a century ago, when the Wall Street Crash and the Great Depression were looming.
Take as an example, the five laws of gold. If you're looking to put your personal finances on a sound footing, wherever you're in life, they are for you:
Law No1: Gold comes gladly and in increasing quantity to anybody who puts by at the least a tenth of the earnings to produce an estate for their future and that of the family. In other words, save 10% of one's income. Minimum. Save more than that if you can. And that 10% is not for next year's holiday or perhaps a new car. It's for the long-term. Your 10% can include your pension contributions, ISAs, premium bonds or any kind of high interest/restricted access savings account. OK, interest rates for savers have reached historic lows now, but who knows where they'll take five or 10 years? And compound interest means your savings will grow faster than you think.
Law No2: Gold labours diligently and contentedly for the wise owner who finds profitable employment for it. So, if you're looking to invest as opposed to save, get it done wisely. No crypto-currencies or pyramid schemes. We're focusing on what "profitable" and "employment" ;.Make your cash work for you but remember the most effective you can a cure for this side of the rainbow is steady returns over the long term, not lottery wins. In practice this probably will mean shares in established companies supplying a regular dividend and a regular upward trend in share price. You are able to invest directly, or by way of a fund manager in the form of unit trusts, but before parting with a single penny, see Laws 3, 4 and 5...
Law No3: Gold clings to the protection of the cautious owner who invests it beneath the advice of these wise in handling it. Before you do anything, keep in touch with a qualified, experienced financial adviser. In the event that you don't know one, do some research. Check them from the internet. What expertise do they've? What type of clients? See the reviews. Call them first and get a feel for what they can offer you, then decide if an experience to face meeting will work. Check out their commission arrangements. Are they independent or tied to a specific company, under contract to push that company's financial products? A good financial adviser will encourage you to have the basic principles in position: pension, life insurance, somewhere to call home, before steering you towards investing in emerging markets and space travel. When you're satisfied that you've found an adviser you can count on, tune in to them. Trust their advice. But review your relationship using them at regular intervals, say annually, and if you're not happy, look elsewhere. Chances are, if your judgment was sound in the initial place, you'll stick with exactly the same adviser for several years to come.
Law No4: Gold slips from the one who invests it in businesses or purposes with which they not familiar or that aren't approved by those skilled in its keep. When you yourself have a strong understanding of food retail, by all means spend money on the supermarket chain that's increasing market share. Likewise, if you work for a business that has a member of staff share ownership scheme, it makes sense to make the most of it, if you're sure that your company has good prospects. But, you ought to never spend money on any market or financial product that you don't understand (remember the Crash!) or can't fully research. If you're tempted to test your hand at currency dealing or options trading and you've a financial adviser, talk for them first. If they're not up to speed, inquire further to refer one to an individual who is. Best of all, stay away from anything you're not sure about, regardless of how large the potential returns.
Law No5: Gold flees the one seeking impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts his own inexperience. Again, the fifth law follows on the heels of the fourth. If you begin scouring the web for financial advice and wealth creation ideas, your inbox will be filled with "tricksters and schemers" promising you the planet earth if you'll invest £999 in their "system" for turning £1 into £1XXXXXX on the Chicago Mercantile Exchange. Remember, the only one who makes profit a silver rush is the one selling shovels. Buy the incorrect shovel and you'll quickly dig yourself into debt. Not only can you pay through the nose for a system that has no proven value; by following it you will probably lose far more than the price you paid for it. At minimum you ought to check genuine reviews of the product. And never buy any system, investment vehicle or financial product from any business that's not registered by a national watchdog, like the Financial Conduct Authority for the UK.