Who doesn’t want to be rich? You may have wondered about this before. What was your answer? I think most of us would certainly say yes. Who wouldn’t want to become rich? But how do you define rich. Is it only monetary? For this blog, yes. But what would you consider rich? Is 1 million, 10 million or is it 100 million baht? It is different amount for everyone. But one thing we can all agree that everyone wants to be rich but being rich is not for everyone.
If you are determined to be rich, what are the things you have to do? How are you going to get there? How long will it take? Where do you start? Who can help to get you there? And if you have all the answers to these questions, is it guaranteed that you will reach it? There’s no one right answer for this and it will not happen just like a flick of a finger.

My intention for this blog is to share one system that I find very valuable. This system is from one of the most wonderful books called, “The Richest Man in Babylon” by George S. Clason. I will summarize in details of what is discussed in this book. It is a simple but truly powerful. It provides a great way to manage your finance. I humbly recommend it to anybody that stumble upon this blog. Read it, understand it and apply it. There are many minor details to be told so you can get the full picture of this system. For this blog, we will expand it into three parts:
· Part one will cover basic of this system, the percentage breakdown and needs vs. wants.
· Part two will cover loans (this includes lending and borrowing)
· Part three will cover plan, commitment and habits.
Part one starts here. The first thing you have to know is the basic of the system. To take the full advantage of everything no matter what issue or topic, we must know the setup of the current situation. So, you must fully understand your environment. For example, what is your country? Is it a more socialist society? Or is it a capitalist society? You need to know basic laws to know what and what not to do. You need to know basic of taxes such as deductibles and tax rates. So, it is very important to know these basics to fully take advantage.
Determining your finance breakdown is critically important. Your net income is a good place to start. We will work with this as 100%. This is the money after paying your social responsibilities such as tax. The perfect ration is starting out by doing your best to live within 70% of your net income. The next 10% is for education and training so you can be even better at your profession/specialty. The next 10% is for investment. This is where you put your money to earn more money. The last 10% is for charity. This is a perfect system but I know it can take some time for you to get here. Don’t be discouraged if you have to start at 97% expenses and 3% savings. Most of us will start out like this but through this system you will be on your way to become rich. On your journey, you should do your best to keep at least 10% of your income. This money should be yours to keep.

In today’s world, it is difficult to live within our income level. There are things we want to buy and things that are necessary. But do you ever take the time to stop and analyze what you really need? When you take the time to do this it won’t be a surprised to see that you may only need less than half of what you possess. The wants tend to scream much louder than the need. For example, in buying a mobile phone, do you need the most expensive one in the market? Or can you get by with the one cost 1/4 of the expensive? Normally, that’s the case but we let outside factors drive our actions. This, in turn, push us back into negative.
Listing out what you have now is a very good idea to see which are the needs and the wants. You can then create the plan to cut out the wants and to reach living within your means. You must develop a strategy to overcome this. Only having a solid plan can help you to know if you make any progress. If you choose to do this only in your head, you will fail even before you start. Having a system is a sure way to succeed because you will find out if you are right or wrong then you can work to adjust it and reach your goal.
The few things you must know to begin the journey to become rich are creating a system, the percentage breakdown and needs vs. wants. Do not start to save without creating a system to follow because you will not know the goal. A car needs a destination which is the same as your goal of becoming rich. The percentage breakdown will help to guide you to make the necessary change and commitment. Lastly, you must face the truth to know which are needs and wants. You must be strong to reduce and eliminate the wants. Learn first about these basics and you are on your way to become rich.