The following is a guest post from Mohamed Tohami of Midway Simplicity.
Let’s have a quick look at one part of the economic system of Ancient Egypt.
Agriculture produce collected as government revenue was treated in the following way:
- A portion goes to state workshops to manufacture secondary, value-added products.
- Some of the value-added products were traded at a profit.
- Others used to pay employees and fund projects.
- The remaining portion of the agriculture produce was put into storage as an emergency stock.
What a simple, impressive economic system! This system was created more than 5000 years ago.
If you treated your income the same way, you can create a strong and prosperous personal economic system.
Here are four ways to effectively manage your income/resources:
1. Invest in creating added value
The first part should be invested to add more value to your life. Don’t be a pure consumer and spend all your money on paying bills and buying things that you don’t really need. Invest your money in acquiring new knowledge, learning a new skill or maximizing your life experience through traveling for example. Use your money to increase your personal value and add more joy to your life experience.
2. Exchange value for profit
When you increase your personal added value, seek ways to exchange your value for profit. For example, when you invest in an MBA, you can seek better jobs or a different career path in a field that you love and where you can earn more income. You can also start your own small business and produce value that people are willing to pay for.
3. Fund your lifestyle
Use the generated profit to fund your ideal lifestyle. Don’t be a heavy consumer. Focus more on your life experience. I believe you don’t want to be rich. You just want to experience what you think is only available to rich people.
Remember, it is not about the possession. It is all about the experience.
4. Start an emergency account
Part of your income should be saved for emergencies. I recommend that you plan to save one year’s worth of living expenses.
This is a difficult goal to achieve if your life is complicated and full of unnecessary stuff and endless needs. But, when you work on simplifying your life and reducing your needs, this goal becomes highly achievable.
What do you think of this simple personal economic system? I would love to hear your thoughts in the comments below.
In his blog, Midway Simplicity, Mohamed Tohami shares simple living ideas that fall midway between extreme frugality & radical minimalism and the hoarder’s extreme fear of deprivation. If you’re looking for more mainstream simple living ideas that are not too harsh for your lifestyle, then give a visit to Tohami’s Midway Simplicity blog and grab your copy of “The 30-Day Simplicity Challenge” ebook.
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I agree with your statement about being rich….I personally don’t want to be rich, rather I want security that I think comes with having money in the bank. It is not the same issue! Thanks for some good reminders, Jackie
I really liked that statement about not wanting to be rich too Jackie. I think the motivation to save can be perceived as greed sometimes when that’s usually not the case. Being responsible with our financial resources allows us security and freedom.
When we have financial security and freedom, we’re better able to make a positive impact. If we’re just trying to survive, we spend our energy and time trying to make ends meet rather than having the opportunity to choose a more harmonious path — and ultimately — give back!
Hi Jackie, I’m glad you liked the article. I don’t want to be rich too. I just want to experience life fully and openly, and make a significant contribution.