We are now living in an impatient age, and as it pertains to money we wish more of it now, today, not tomorrow nft project. Whether it's a deposit for a mortgage or clearing those credit cards that sap our energy long soon after we stopped enjoying what we bought with them, the sooner the better. When it comes to investing, we wish easy pickings and quick returns. Hence the current mania for crypto-currencies. Why purchase nanotechnology or machine learning when Ethereum is locked in a endless upward spiral and Bitcoin may be 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 predicated on things that might seem old-fashioned today: caution, prudence and wisdom. Clason used the wise men of the ancient city of Babylon while the spokesmen for his financial advice, but that advice is really as relevant today as 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 should be looking to position your individual finances on a sound footing, wherever you are in life, they are for you:
Law No1: Gold comes gladly and in increasing quantity to anybody who puts by at the very least a tenth of the earnings to produce an estate for his or her future and that of the family. Quite simply, save 10% of one's income. Minimum. Save more than that should you can. And that 10% isn't for next year's holiday or a new car. It's for the long-term. Your 10% can include your pension contributions, ISAs, premium bonds or any type of high interest/restricted access savings account. OK, interest rates for savers are at historic lows now, but who knows where they'll maintain five or ten 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 rather than save, get it done wisely. No crypto-currencies or pyramid schemes. We're emphasizing the language "profitable" and "employment" ;.Make your cash work for you but remember the very best you can a cure for this side of the rainbow is steady returns over the long run, not lottery wins. Used this will probably mean shares in established companies supplying a regular dividend and a steady upward trend in share price. You can invest directly, or via a fund manager in the form of unit trusts, but before parting with just one penny, see Laws 3, 4 and 5...
Law No3: Gold clings to the protection of the cautious owner who invests it under the advice of those wise in handling it. When you do anything, speak with a qualified, experienced financial adviser. In the event that you don't know one, do some research. Check them on the internet. What expertise do they've? What sort of clients? See the reviews. Call them first and get a feel for what they could give you, then determine if a face to face meeting will work. Check out their commission arrangements. Are they independent or associated with a specific company, under contract to push that company's financial products? A significant financial adviser will encourage you to have the fundamentals in position: pension, life insurance, somewhere to call home, before steering you towards purchasing emerging markets and space travel. When you're satisfied that you've found an adviser you can rely on, pay attention to them. Trust their advice. But review your relationship with them at regular intervals, say annually, and if you're not happy, look elsewhere. Odds are, if your judgment was sound in the initial place, you'll stick to the same adviser for many years to come.
Law No4: Gold slips from usually the one who invests it in businesses or purposes with that they not familiar or which are not approved by those skilled in its keep. When you yourself have a deep knowledge of food retail, by all means purchase the supermarket chain that is increasing market share. Likewise, in the event that you work for a business that has a worker share ownership scheme, it's wise to take advantage of it, if you're sure that the company has good prospects. But, you must never purchase any market or financial product that you don't understand (remember the Crash!) or can't fully research. If you should be tempted to try your hand at currency dealing or options trading and you've an economic adviser, talk for them first. If they're not up to speed, question them to refer you to a person who is. Best of all, steer clear of anything you're unsure about, no matter how large the potential returns.
Law No5: Gold flees usually the one seeking impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts their own inexperience. Again, the fifth law follows on the heels of the fourth. If you start scouring the web for financial advice and wealth creation ideas, your inbox will undoubtedly be high in "tricksters and schemers" promising you the planet earth if you'll invest £999 inside their "system" for turning £1 into £1XXXXXX on the Chicago Mercantile Exchange. Remember, the only one who makes money in a gold rush is usually the one selling shovels. Buy the incorrect shovel and you'll quickly dig yourself into debt. Not only will you spend through the nose for a method that has no proven value; by following it you will probably lose a lot more compared to price you covered it. At minimum you must check genuine reviews of the product. And never buy any system, investment vehicle or financial product from any company that is not registered by way of a national watchdog, like the Financial Conduct Authority for the UK.