Hello Private Lender nation and welcome to episode 123 of the Private Lender Podcast, I’m your host, Keith Baker and I’d like to thank you for sharing your time with me today.
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!
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!
Before I jump into today’s episode, I want to give a shout-out to Blake who sat next to me on a flight to Nashville recently. He’s a young man who is leaving the world of commercial real estate to go back to school to follow his passion. And he has a great outlook on money and not wasting it just because you have it. Blake, hold on to both your passion and your outlook on money and wealth – they will serve you well and I wish you all the best!
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 cure for a lean account: Make your money multiply with compound interest.
But first, a little housekeeping. . . . .
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Let's get down to the Brass Tacks
Today’s topic is another lesson from the Richest Man in Babylon written by George Samuel Clason. Today is the fifth installment where we will be discussing the 3rd cure for a lean purse, or as I like to think about it, a cure for a low account balance. 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.
If you would like, you can go back and catch up on the first four installments in the following episodes:
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
So, let’s discuss the 3rd cure for a lean account
So if you follow the lesson sequence from the book, you are beginning to increase your account value- and this is no doubt very satisfying to see it grow. However, if your money is in a savings account then you are not earning very much. According to Bankrate.com, at the end of March 2021, the national average for savings accounts was 0.07%.
While earning cash flow and saving a portion of it is but the first...
