The Blue Roof

I am always going on about building wealth and creating financial freedom.  I wonder if people realise how important this is?  There is something in us that always feel it will somehow be better in the future.  We hear and read that less than 6 out of 100 people will ever be able to retire.  But there is this inside us that blocks the reality out. 

 So let’s look what you can do to become financially free and create wealth.

 Financial freedom and wealth is the result of getting your money to work for you, instead of you working for your money!  It implies that you should constantly divert some of your income to assets that work for you.

 Let’s see what you can do to achieve this.

 One way to create wealth, is to build a big business.  Think Wal-Mart or Pick ‘n Pay, or Microsoft.  You start with one store that is successful and you duplicate that success as many times and as often as possible.  You appoint the best people possible to run it for you and you list it on the stock exchange.  Very few people achieve this.  Look at the number of companies listed on the stock exchanges of the world, to see what I mean.

 You could start a Multi Level Marketing Business and build it wide and deep.  Once again, for various reasons which has nothing to do with MLM, very few people ever attain real financial freedom.  But it is an excellent business school.

 You could write a book that becomes a bestseller that is turned into a box-office hit film and collect royalties forever.  Or perhaps you can compose and write a hit song.  Once again, very few people ever achieve this.

 You could, like Warren Buffett, buy a business with an excellent cash flow and invest that cash flow into another business with an excellent cash flow, and just keep on repeating the process.  But Warren Buffett is the only person ever to become the wealthiest person in America without his own business, like Bill Gates. 

 The one thing that is achievable for most people, is a business similar to that of Warren Buffett, in property.  Most people can somehow afford to buy a house or flat.  If you re-invest the rent (cash flow), you will repay one business (property) very quickly.  Then you divert all the cash flow into another business (property) and you keep on repeating this.

The nice thing is, the knowledge to do this is generally freely available (I do free seminars in Cape Town)!  And it is something of which we all have the basic knowledge to understand the bigger picture!

 But remember – invest in yourself before you invest your money.  Unless you do that, you have a bigger chance of shrinking your wealth than creating wealth!

The Luckiest Man in Babylon 7

This is the last chapter of The Richest Man in Babylon by George S. Classon. Please send me any questions or topics that you would like me to discuss in after completing this book.

Characters:

Sharru Nada – The Merchant Prince of Babylon

Arad Gula – Sharru’s partner

Hadan Gula – Arad’s grandson

When next Sharru and Arad Gula meet, Arad is a new man. He took the big step, bought his freedom and lived free – and he was successful. He greets Sharru with these words: “Behold, the slave thou knewest is now a free man. There was magic in thy words. Already my sales and my profits are increasing. My wife is overjoyed. … She much desires that we move to a strange city where no man shall know I was once a slave. Thus our children shall be above reproach for their father’s misfortune. Work has become my best helper. It has enabled me to recapture my confidence and my skill to sell.”

But, back at the ranch, as the saying goes, storm clouds are gathering. Sharru’s master used his time at the gambling tables, and lost heavily. Consequently he is not paying his creditors, amongst others the farmer for grain. A lot of people are threatening him.

Naively Sharru asks: Why should I be concerned about my master’s folly? And gets this shocking answer: “To the money lender didst he give thy title to secure a loan. Under the law he can claim thee and sell thee.”

And, lo and behold, the next day, while Sharru is baking, the money lender sells him to a new owner. And the worst part is, the new owner is not a nice man! And he is not the master, just the overseer that has to build a part of the wall, the dreaded wall where Sharru saw so much misery. It was a time of misery. All Sharru’s dreams and plans defeated in one go because of somebody else’s extravagance. I would feel bitter about it, and you? And while he laboured on the wall, carrying huge stones from the pits in the desert, back-breaking work, he felt his spirit breaking as his strength diminished.

Then he wondered about the people who came to Babylon with him. Were they right? Should he shirk from work? Should he lean on the shovel more? Then again he remembered Megiddo’s calloused hands and the happiness on his face. The questions and emotions raced through Sharru. He works as hard as Megiddo, but finds no happiness. Is happiness something that the Gods put in your lap? Was he to work for the rest of his life without ever realising his dreams? Indeed, he was very confused, as you can imagine.

A few days later, all the questions still unanswered, he was called to Babylon to see his master. He dug up his purse with his freedom money, put on what was left of his robe and was on his way to his master, not knowing what to expect.

The thoughts kept racing through his mind. What is happening? Why does the master want to see him? Will he forever be a slave, working himself to death? Is he being punished for something he doesn’t even know of that he did wrong? What new miseries are awaiting him? What new disappointments would he face?

I can imagine that the trip behind the messenger on the horse was not a very good one. I even get that heavy feeling in the pit of my stomach.

Tomorrow we see what awaits.