The Richest Man in Babylon 10

To my readers - I am sorry for the delay in posting.  Things have been very busy and sometimes this blog gets overlooked.  I enjoy writing for the blog and I don't like to miss posts.

     At the last post, we discussed the very positive benefits of small investments at first.  This is a good philosophy for several reasons, but one of the best reasons is that: (1) it helps to invest slowly to check out an investment at first and (2) if an investment goes south, then all of your savings will not be lost.

     However, as we discussed on this thread before, a common thread among experienced fraudsters is to get a person "hooked" by making certain that small investors will get good returns so as to entice these small investors to invest more.  This is an old trick.  The real question, therefore, is how to avoid this kind of scam?

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY AS PER THE LAWS OF THE UNITED STATES OF AMERICA.

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----------à>>>>>>>>>>>>>>>gene tausk

 

The Richest Man in Babylon 9

OK - getting back to Johnson's admonition to "guard thy treasure against loss."  Johnson's advice is on investing and, as discussed previously, Johnson advises to invest money in small sums at first before risking larger investments.

     As an attorney who investigates and defends people from fraud, I can only state that this is the most sound advice in investing I have ever heard.  Victims of fraud generally invest most if not all of their money into an investment scheme.  This is the greatest problem with fraud victims - they tend to lose everything (or most of it) in these schemes.  The loss of any monies is problematic but when an entire life's savings is gone, the tragedy is even deeper. 

      Investing in a small way at first is not a complete guarantee that a fraud will not happen, but it is a good start.  Of course, there is always the old story that a fraudster will entice a small investment at first and then work into a larger one, which is often the case.

     But, this is a story for the next post. 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY AS PER THE LAWS OF THE UNITED STATES OF AMERICA.

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----------à>>>>>>>>>>>>>>>gene tausk

 

The Richest Man in Babylon 8

OK - let's move onto the next chapter in George Clayton Johnson's classic.  His advice for wealth building, after "starting they purse to fattening" (i.e. investing money) is: "Guard thy Treasure from Loss."

     If you remember in our last post, we discussed how the investment part of Johnson's instructions is the part where fraudsters can get the best of you.  After all, fraudsters and white collar criminals are always offering "investment schemes" to individuals.  It is in the next chapter, however, where Johnson tells us how to avoid such scams.  His advice begins with the first sentence of this chapter:

"Misfortune loves a shining mark. Gold in a man's purse must be guarded with firmness, else it

be lost. Thus it is wise that we must first secure small amounts and learn to protect them before the

Gods entrust us with larger."

 

     Clayton advises us to learn how to invest small amounts first before risking large investments.

 

 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY AS PER THE LAWS OF THE UNITED STATES OF AMERICA.

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

 

The Richest Man in Babylon 7

So - we are advised to make our gold multiply - in other words, to invest our monies, not just to let the monies sit around and do nothing.  As we stated earlier, this is a double-edged sword.  Yes, we want to invest our savings into some sort of profitable enterprise or something that will  make our money work for us.  If we don't, then our savings will get eaten up by inflation or, at the very least, will stagnate in value.

      But, the double-edged sword is that it is through investments that the con artists and fraudsters come calling.  We want to invest our money but we don't want to be a victim of fraud.

     In this chapter on investments, George Clayton, the author of "The Richest Man in Babylon" tells us to invest so the earnings are reasonable.  He is not telling us to invest in some scheme that promises a big payoff or a huge rate of return.  It is only through reasonable investments that work in the long term that real money is made.

     Just by following this advice alone, most pitches of con artists would reach deaf ears.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY AS PER THE LAWS OF THE UNITED STATES OF AMERICA.

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

The Richest Man in Babylon 6

OK - so moving on to the next "remedy" for being poor.  The third hint to keep acquiring wealth is to "make your gold multiply."  In other words, invest your money (or more specifically, your savings).  Don't spend your savings and don't leave it around not doing anything (a/k/a leaving it in your mattress).  If you money "works" for you, then you eventually can retire.

     This is the real sticking point when it comes to fraud.  Any decent financial advisor will, of course, advise you to invest your money.  That is the entire point of earning money in the first place - to put it to good use so eventually you can work less (or retire completely).  Unfortunately, it is the desire to invest money that attracts con artists.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY AS PER THE LAWS OF THE UNITED STATES OF AMERICA.

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

The Richest Man in Babylon 5

OK - returning to the theme of the previous post, namely - control expenditures. 

     Keep track of what you spend.  Keep a record of what you spend.  What expenditures are necessary, what expenditures are frivolous?  If you can track what you spend, then you will begin to note what is important and what is a waste of money.

      This is important in terms of fraud for a variety of reasons.  First, keep in mind, as we have discussed numerous times on this blog, fraudsters generally want their targets ignorant.  They  certainly do not want their targets to investigate into what their money is asked to be invested.  If a target has a track history of keeping track of spending, then it is only a short jump for a person to want to know the investment "scheme" of a fraudster.

     Second, once again as discussed, many fraudsters attempt to "fast talk" their targets into accepting the sales pitch.  If a person has a track history of keeping track of spending, then a "fast talk" would certainly be of less impression on the target.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY AS PER THE LAWS OF THE UNITED STATES OF AMERICA.

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

The Richest Man in Babylon 4

OK - continuing with our look at how the Richest Man in Babylon was able to make money - here is the second investing tip from George S. Clayson:

Control expenditures

    In other words, learn to control how you spend your money.  Make a budget.  Learn to live within your budget. Separate your necessities from your desires.

We will explore more of this tomorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY AS PER THE LAWS OF THE UNITED STATES OF AMERICA.

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

The Richest Man in Babylon 3

OK - reviewing the parable from yesterday - a portion of what a person earns is his to keep.  In other words, pay yourself first.  Pay at least 10% of your earnings to yourself.  More if you can, but no less than 10%.  If you earn $1000, put away $100. 

      This is solid financial advice as any decent financial advisor would state.

      What is important about this for fraud control is that it is solid financial advice.  Most fraud schemes attempt to give you a short term fix - invest in this incredible opportunity NOW and you can earn 20% interest per year.  In other words, a get-rich-quick scheme which does not exist.  Putting your money aside, especially a modest amount, and letting it grow over a long period of time is solid financial advice.  Telling you that you can get quick in a few months (or even years) is usually a direction for disaster.

     So, George Clayson, the author of "The Richest Man in Babylon" was only reiterating sound financial advice when he advised his readers to pay themselves first.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY AS PER THE LAWS OF THE UNITED STATES OF AMERICA.

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk

 

The Richest Man in Babylon 2

Well - once again I have to apologize for the delay in posts.  The last few days have been insane with work to the point where I have had barely a chance to sleep.  But, fortunately, some free time has finally been unearthed and I have some time to get back to this.

     OK - The Richest Man in Babylon - parables for getting wealthy.  The book was written in 1926 and as I said before the writing style is simplistic and can be really annoying at times.  But the principles the book espouses are about as foolproof as you can get for acquiring wealth and, further, if a person follows this advice, the chances of him becoming a victim of fraud is greatly reduced.

     So - onto principal number 1 - "A portion of all you earn is yours to keep."

     Clayton advises that a person put aside at least 10% of his income.  In other words - pay yourself first.  If you earn $1000 per month, then take $100 and put it aside for long-term investment.  This "10%" rule, or more precisely, the "pay yourself first" rule, is the key for wealth acquisition.  The very first thing you should do upon getting paid or receiving any kind of monies is to put 10% aside and pay yourself.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY AS PER THE LAWS OF THE UNITED STATES OF AMERICA.

http://www.tauskvega.com

 

----------à>>>>>>>>>>>>>>>gene tausk