1 BUDGETING
The Babylonians Way to Budget
Budgeting! Building and maintaining a budget is an essential element of personal finance success and the most boring topic to most people. It is also the roadmap for your finances and life. Most financial experts make budgeting all about balancing your income and your expenses. Though, I prefer to talk about budgeting as a way to generate more income and expand your means. I learned something while researching how the Babylonians applied it and Robert Kiyosaki mentioned it in his book Rich Dad Poor Dad. I would like to share this information with you all since it isn’t thought in the common academic schools. This is because this information tends to be, behold back from your closest influencers such as schools, parents, the so-called spiritual people (churches), banks, and so-called financial experts.
To sentences that make you see budgeting different
Financial experts, “live below your means”
The Babylonians, “Expand your means” – aca the rich and wealthy’s way!
The way most financial experts suggest building a budget.
First, you list your income (all the money you earn) and then your expenses (every bill you pay for in a certain period of time)—most budgets breakdown your income and expenses on a monthly basis.
Next, the experts suggest you make cuts to your expenses until you have a balanced budget.
The Babylonian's way was and the wealthy use it today like this; it’s not how much money you make or earn but how much money you keep. So, while the generally accepted practice of increasing your income is always a good idea, the Babylonians had a different approach and are used today by the rich, which is disagreeing with limiting the expenses. Rather, they believe(d) you should ultimately work to expand your means so you can expand (increase) your expenses to afford whatever it is your heart desire to be happy.
The Three Financial principles
A. Paying Yourself First
In both books The Richest Man of Babylon and Rich Dad Poor Dad, referrer to paying yourself first method as used by the Babylonians or even go further back as in accordance of the Old Testament; Leviticus 27: 30 states “Every tenth part (every tithe)” of the land, whether from the produce of the field or the fruit of the trees, belongs to Jehovah. It’s something Hoy to Jehovah. And Proverbs 3: 9 states “Honor Jehovah with your valuable things, with the firstfruits (very best) of all your produce (income). Again, Pay Yourself First. Essentially, this is a way of prioritizing your financial savings and investing, making it an expense item on your budget -the most important one.
