On this episode of The Investing For Freedom Podcast, Mike speaks about one of his favorite books of all time, The Richest Man In Babylon. Mike shares how he discovered this book and the impact it has had on his life. Mike urges you to get out there and starting learning about all the different ways you can begin investing and states that sometimes it’s time to stop learning and start doing! If you’re interested in investing passively, text the word ‘DEALS’ to 480531719.
0:00 – Intro
0:35 – Mike explains how he wants to speaks about one of his favorite books, ‘The Richest Man In Babylon’, and the story behind the book and the impact it has had on his life throughout the course of this episode
1:19 – Mike shares a story about his uncle and how he was introduced to this book
4:45 – Mike states that sometime the simplest principles applied over and over and over are what really make huge impacts on our life
4:53 – Mike states that sometimes we need to stop learning and we need to start doing
8:10 – Mike speaks about how if you want something different in life than what you’re currently getting then you have to change and leverage things
8:40 – Mike shares the third principle you need to be following
9:40 – Mike explains how if you don’t know what you’re doing then just find someone around you that can help teach you or even just invest with them
11:04 – Mike informs us about the last principle and how it can impact your way of life
11:15 – Mike expresses how there are simple principles but the reality is – go make money, put a 10th of it aside and then put that money to work for you
11:33 – Mike states that he’s surprised by the amount of people these days that just let their money be taken out of their pay check and let a financial advisor deal with it and they don’t know what they’re investing in
12:20 – Mike advises you to go out there and learn more about what you’re investing in and all the different ways you can invest
13:25 – If you’re interested in investing passively with Mike text the word ‘DEALS’ to 480531719
Are you looking for freedom, freedom from the daily grind and hustle, or just finding a way to live the life you always wanted. Then join us on the investing for freedom podcast. Our host Mike Ayala will help you discover new ways to find freedom. With tips, insights, and interviews you’ll learn the exact systems he’s used to travel the world and live his best life. True success and happiness are all about freedom. And here’s your roadmap on how to find freedom on your own terms. Welcome to the investing for freedom podcast. Here’s your host, Mike Ayala.
Thank you for joining me on the investing for freedom podcast. Today, I’m going to have a conversation with you about one of my favorite books, the richest man in Babylon, and a story behind the book and how I got my hands on it early on and how this book has really just shaped my life. And I’ve said this so many times I have read or listened to this book, literally over a hundred times over and over and over.
It’s not a huge read. It’s 120 pages, but the wisdom in it is just so profound. And unfortunately this week Kara’s uncle passed away and it was just reminding me of how I got my hands on this book, as I said when I was getting married to Kara, which we were pretty young when we got married. I was 20, Yeah, I was 20 years old when we got married and Kara was 19 and I’ll never forget. I had an uncle. His name was Harold Croppy and you know, there wasn’t a lot of wealth in my family. But uncle Harold, I remember growing up he had a motor home and he would always come through on his way from Nebraska to the west coast. He would come through with his motor home and he had this big, it looked like a yacht to me at that point in time, but it was a boat that they would live on and they’d go fishing in the ocean and he’d do this for three or four months out of the year.
He was an auctioneer. He had ranches, he had a real estate company. I didn’t know then, but obviously looking back at it, Uncle Harold had done pretty well. And as a young kid, I remember when he would come through with that motor home, he had one of those you know, obnoxious horns. And we always knew when Uncle Harold was coming. Cause you know, from down the street, he would be blaring that horn. But anyway when Kara and I were getting married, this is an interesting thing that happened. So we’re at the church. Kara’s downstairs getting ready, I show up and obviously you can’t see Kara, so I’m waiting in the foyer.
And all of a sudden I’m talking to my uncle and he looks over and he says, Joey, what the hell? And he, you know, they run over and start hugging each other. And this was Kara’s uncle Joey, the one who passed away. And again, unfortunately this week my uncle Harold and Kara’s uncle Joey had known each other for years. My uncle was from Nebraska and Kara’s uncle was from South Dakota and they used to do auctioneering together. Uncle Joey was a cattle rancher. And so was Uncle Harold. And we had no idea that they knew each other. And so this was just kind of one of those crazy things you know, looking and seeing these two just hugging each other. My uncle took his glasses off and he was crying cause he hadn’t seen Joey forever. And anyway, it was just one of those moments where it’s like, wow, this is just such a small world.
But then you fast forward. And Kara and I went on our honeymoon and came back and we were looking at all of our gifts and I pick up this book, the richest man in Babylon. And it was the gift that, not Kara’s uncle, my uncle Harold had given us for our wedding. And, you know, I opened it up in the front page of that book was a $20 bill and a $2 bill and Uncle Harold had wrote in there. He said the $2 bill is yours to keep. And the $20 bill is yours to spend. And I didn’t really have any idea what that meant at that point in time, I took the $2 bill and I actually stuck it back inside the book. And you know, the $20 bill is mine to keep. And so I’m not the smartest guy in the world, but I follow directions well. So I left the $2 bill in the book and I said, I’ll figure this out later.
So took the $20 bill, kept it. And then I don’t know, it was probably a year later. Kara and I were going on vacation somewhere and I picked up that book and I’m like, you know what, I’m going to take this book with me. And I remember opening that book and it just was mind boggling to me. And it’s crazy. There’s a bunch of lessons in this book, but one of the greatest lessons for me is that there’s nothing complex about this book. It’s not big. Like I said, it’s probably 120 or 150 pages, but I have read this over and over and over.
And I think the lesson to be learned in this is that sometimes the simplest principles applied over and over and over are what really make huge impacts in our life. And it’s the same with goal setting. It’s the same with the five laws of gold, which I’m about to share with you from the book and there’s many different versions of this in the book and many stories that drive at home.
But I think it’s some of the simplest principles, you know, we’re always out there learning. We’re always going for more and I’ll do a future podcast around this, but sometimes we need to stop learning and we need to start doing. There’s a scripture in Timothy in the Bible and it talks about how there’s people that are always learning, but never coming to the full knowledge of truth. And I think sometimes, you know, we think that life is complicated and there has to be more, but the reality is if we just applied even a 10th of what we knew, we’d probably be so much further along.
So here’s the five laws of gold. If you haven’t read the book, I highly recommend it, go pick it up. But again, you know, I was just thinking this week about how fortunate we are you know, for those that have come before us, our ancestors, uncle Joey, uncle Harold they’ve both passed on, but you know, they’re lightened the things that they’ve taught us live on and, you know, we get to stand on their shoulders, things that they accomplished. So thought I’d just, you know, give some honor to uncle Harold and Uncle Joey today.
But the first law of the laws of gold is gold cometh gladly and in increasing quantity to any man who will put by not less than one 10th of his earnings to create an estate for his future and that of his family. And I know, you know, a lot of people have learned about tithing over the years and giving a 10th of what they make to the church. But if this principle is new to you, you know, you should take a 10th of what you make and you should put it aside for investing in and for your future. And this is something that I, you know Kara has done such a great job. She actually, at this point in time has three buckets. So she’s got a savings bucket. She puts 10% away in savings. She puts 10% of everything we make, which is no longer a weekly paycheck, cause I’m not an employee, but she takes a 10th of what we make and puts it into investing. And then we take a 10th of what we make and we put it into a giving fund. And that’s just, you know what we do and you don’t have to start with 30%, but the law number one is take a 10th of all you make and set it aside as an estate for your future and that of your family.
And I’m not going to go too in the weeds on this right now, but if you read the book what’s cool about that is, and this is part of the second law of gold. As you start putting away 10%. I mean, some of you might say, well, gosh, that’s not really going to help me. But the reality is if you make, you know, a hundred grand a year and you put away 10%, that’s $10,000. It’s not a ton of money, but if you go in and invest that, then next year, if that brings a 10% return and you put away another $10,000, now you’ve got $20,000 that started and then it’s earning. And by year three, you’ve got $30,000 plus it’s earning. So it starts to compound quite a bit. And if you get out to you know, 10, 15, 20 years and you keep putting that to work, it’s pretty impactful. So law, number two, gold laboureth diligently, and contentedly for the wise owner who finds for it a profitable employment multiplying even as the flocks of the field.
So I kind of alluded to this already, but as you take a 10th of all you make which uncle Harold wrote in the book, a 10th of all you make is yours to keep and you invest that. Then those investments go out and labor diligently and contentedly. This book is written kind of in a parable format. So it’s, you know, it comes from an old school. So the language is kind of interesting, but as your gold starts producing for you that’s really how you scale. And I’ve talked about this a ton. I mean, really, if you want something different in life than what you’re currently getting, you have to change things up. You’ve got to leverage things. I actually believe that everything comes down to leverage. So as you start taking 10th of all you make and you start investing that and learning how to leverage it, it’s going to multiply exponentially and it’s the same with people. You know, if you can take people and you know, provide employment, or partner up with them or whatever, and leverage their time, it’s the same thing.
Gold clingeth, this is number three, gold clingeth to the protection of the cautious owner who invests it under the advice of men and it’s wise handling. So many stories in the book about this. I love it again. If you haven’t read the book, go get your hands on it. But long story short, gold clingeth, meaning it stays under the protection of the cautious owner who invests it wisely. Have you ever met those? There’s so many people out there that no matter what they just can’t get ahead. They’re, you know, they’re always, their cars broke down. They’re borrowing money, they’re living paycheck to paycheck. Well, we have to shift our mindset around it. Gold clingeth to the protection of the cautious owner who invests it under the advice of men and it’s wise handling. If you don’t know how to invest, then you need to, you know, start going to masterminds. This is why I’m such a proponent of coaching and masterminds and taking courses and everything else is to learn how to manage money. Because if you don’t change something that you’re currently doing, your financial situation is not going to change.
And so gold clingeth to the protection of its cautious owner who invest it under the advice of men in its wise handling. If you don’t know what you’re doing again, you know, find somebody around you that can help teach you or even invest with them. By the way, as a side note you know, I owe it to those of you who are looking for places to invest capital. We do have some offerings open. We’ve got an HVC company under contract, which is super exciting. We are also restructuring a manufactured housing portfolio. If you’re interested text the word deals to 480-5317-519, if you’re an accredited investor and we’ll get you plugged into some of our deal offering that we have going right now, pretty exciting times.
Law number four, gold slippeth away from the man who invests it in businesses or purposes, which with he is not familiar or which are not approved by those skilled in its keep. And I think this is pretty self-explanatory. I mean, the idea of get rich quick or you know, again, read the book, but there’s so many great stories in there where people have saved their gold, but then they lose it because they invest it improperly. So you either need to go learn what you’re investing in, or you need to, you know, vet out and make sure that who you’re investing with is going to protect your gold. So it’s pretty easy. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
And the last one, gold flees the man who would force it to impossible earnings or who follow with the learning advice of tricksters and schemers, or who trusts it to its own experience and romantic desires and investment. And I think all of this comes back to the same thing again, there’s simple principles. But the reality is go make money. Put a 10th of all you make aside and then put that money to work for you and go out there and learn, make sure that you’re understanding what you’re investing in. I’m surprised at how many people these days just let the money be taken out of their paycheck. They put it into a 401k, they give it to fidelity. They give it to a financial advisor. They don’t ask questions. They don’t understand what it’s being invested in. At the end of the day, Nobody is ever going to take care of or watch over your money the same way you will. So going out there and learning and getting educated is probably the most important thing you can do. I think you would probably agree with me because you’re listening to the investing for freedom podcast, which means that you’re interested in expanding your knowledge and skillset and just being inspired to live a greater life, which is what I am. And so that’s why I wanted to kind of share this with you.
You know, I owe so much again to Uncle Harold and him putting this book in my hand and you know, I’ve just been such a student of learning. And if there’s one thing that I could really just give back to you, make sure that you go out there and learn. It’s not just about making money, but learn more about what you’re investing in and ways that you can invest and you know, I’m blown away the first time that I heard that you could actually take your self-directed 401k or IRA and invest it in real estate. Like why hasn’t anybody told us that? Well, the reason why is because wall street doesn’t make fees on it when you take your money out of wall street and you manage it yourself and you put it into real estate funds.
So that’s the kind of stuff that just irks me. And at the end of the day, the only way that you’re going to get your gold multiplying for you and get over closer to the, you know, 10%, 5%, top 1% is to go out there and get an education for yourself. So go get your hands on the richest man in Babylon. Thank you for supporting investing for freedom. Go share it with somebody. If you love the show, go leave me a five-star review. That’ll help more people find it. And really at the end of the day, we’re just on a mission to spread the education. So again, one last time too, if you’re interested in investing passively with us, text the word deals to 480-5317-519.
If you’ve found value in this episode, and, you know someone who’s wanting to start or move further along in their journey toward investing for freedom, I would be forever grateful if you would share this show with them and help me get this message out to more listeners. Also, if you enjoy what you’ve heard, I would appreciate it if you take 30 seconds and leave me a five star review and share this with your friends and until the next episode, cheers to moving further along in your journey of investing for freedom.