THE ART OF MONEY GETTING Golden Rules for Making Money PLAYBOOK 2 · THE PRINCIPLES OF ECONOMY

THE ART OF MONEY GETTING

Golden Rules for Making Money

PLAYBOOK 2 · THE PRINCIPLES OF ECONOMY

Adapted by Kateule Sydney from the Original work by P.T. Barnum · Public domain (1880)

"Economy is the art of making the most of what you have." — P.T. Barnum

📖 TABLE OF CONTENTS

Chapter 1: The Art of Economy

Chapter 2: Avoid Extravagance

Chapter 3: Don't Keep Company with Those Above You

Chapter 4: Be Systematic

Chapter 5: Read the Newspapers

Chapter 6: Beware of "Outside Operations"

Chapter 7: Don't Indorse Without Security

Chapter 8: Advertise Your Business

Chapter 1 · The Art of Economy

Having laid the foundation of character and chosen the right vocation, the next great principle of money-getting is economy. Barnum defines economy not as mere miserliness, but as the wise management of resources—the art of extracting the greatest value from every dollar, every hour, and every opportunity.

"Economy is the art of making the most of life. It is not the art of saving money for its own sake, but the art of using money so that it produces the greatest possible happiness and advantage."

Barnum distinguishes sharply between economy and parsimony. The economist spends wisely and invests in what is useful; the parsimonious man hoards for the sake of hoarding and deprives himself of necessary comforts. "The parsimonious man is as foolish as the prodigal," Barnum writes. "The one wastes his money; the other wastes his life."

True economy begins with keeping accurate accounts. Barnum urges every man to know exactly where his money goes. "If you do not know how much you spend, you cannot know how much you can save," he observes. A simple ledger, faithfully kept, is one of the most powerful tools of wealth-building. He recommends recording every expenditure, no matter how small, and reviewing the accounts weekly to identify areas of waste.

"The man who knows where his money goes is the man who controls his destiny. The man who does not is controlled by his habits." — P.T. Barnum

Chapter 2 · Avoid Extravagance

Barnum was deeply concerned about the epidemic of extravagance that he observed among the young men of his era. He saw them spending lavishly on clothing, entertainment, and luxuries that their incomes could not support—and he predicted, accurately, that such habits would lead to ruin.

"A man may make a fortune honestly, and lose it by extravagance. I have known many such cases. The man who spends more than he earns is on the road to poverty, no matter how large his income."

Barnum warns against the seduction of keeping up appearances. He tells the story of a young clerk who earned a modest salary but insisted on dressing like a gentleman of means, dining at expensive restaurants, and maintaining a fashionable address. Within two years, he was deeply in debt and had lost his position when his employer discovered his financial irresponsibility. "The man who lives beyond his means," Barnum observes, "is living a lie—and lies always catch up with the liar."

He offers this practical counsel: "Live within your income, no matter how small. Better to eat bread and butter in your own home than to dine on roast beef at another man's table." The dignity of independence, he insists, is worth far more than the fleeting pleasures of ostentation.

Chapter 3 · Don't Keep Company with Those Who Are Above You

This chapter contains one of Barnum's most controversial—and most practical—pieces of advice: do not attempt to keep company with those whose social status is far above your own.

"If you are poor, do not try to keep company with the rich. They will not respect you, and you will be tempted to spend money you cannot afford. Keep company with those who are on your own level, or a little above you—but not so far above that you must strain to keep up." — P.T. Barnum

Barnum explains that when a man of modest means associates with the wealthy, he is inevitably drawn into a cycle of competitive consumption. He feels compelled to dress as they dress, entertain as they entertain, and live as they live—but his pocketbook cannot sustain it. The result is debt, anxiety, and loss of self-respect.

He advises instead: "Seek the company of those who are a little above you in industry and intelligence, but not in wealth." Such companions will elevate your character without straining your purse. They will inspire you to work harder and think more clearly, without tempting you to spend beyond your means.

"It is better to be the richest man in a humble circle than the poorest man in a wealthy one. In the former, you are respected; in the latter, you are pitied."

Chapter 4 · Be Systematic

Barnum was a passionate advocate of system in all affairs. He believed that chaos and disorder were the enemies of prosperity, and that a well-ordered life was the foundation of a well-ordered fortune.

"A place for everything, and everything in its place. A time for everything, and everything in its time. This is the secret of efficiency, and efficiency is the secret of wealth."

Barnum illustrates this principle with a story from his own life. In his early days as a businessman, he was disorganized—his papers were scattered, his appointments were missed, and his accounts were in disarray. His business suffered accordingly. He resolved to become systematic, and within a year, his profits had doubled.

He recommends the following habits:

• Plan your day in advance—know what you will do before the day begins.
• Keep your workspace organized—clutter is a sign of a cluttered mind.
• Set priorities—do the most important tasks first.
• Review your progress—at the end of each week, assess what you have accomplished.

"The man who is systematic accomplishes twice as much in half the time as the man who is not. System is the bridge between intention and achievement."

Chapter 5 · Read the Newspapers

Barnum was a voracious reader of newspapers, and he urged his readers to follow his example. He saw the newspaper as a window onto the world of commerce, politics, and opportunity.

"The man who does not read the newspapers is ignorant of what is passing in the world. He is like a traveller in a strange country without a map."

He explains that knowledge is power, and that the newspaper is the most accessible source of knowledge for the ordinary man. By reading the financial pages, the business announcements, and the news of commerce, a man can learn of new opportunities, emerging markets, and changing conditions that might affect his trade.

Barnum also warns against reading only one newspaper or only one side of the political spectrum. "Read all sides," he advises. "Hear all arguments. The man who reads only what confirms his prejudices will never grow."

He concludes with a memorable image: "A newspaper in the morning is like food for the mind. Without it, you are weak. With it, you are strong."

Chapter 6 · Beware of "Outside Operations"

Barnum uses the term "outside operations" to refer to speculative ventures, side businesses, and investments that lie outside a man's primary trade. He warns against them with characteristic force.

"Beware of outside operations. They have ruined more men than any other single cause. A man who is successful in his own trade often thinks he can succeed in any trade—and he is usually wrong."

Barnum tells the story of a successful merchant who was lured into a speculative mining venture. He invested a large sum, neglected his own business, and within a year had lost both his investment and his commercial standing. "He was a good merchant," Barnum writes, "but he was a poor miner. His mistake was in thinking that success in one field guaranteed success in another."

He advises his readers to stick to what they know. "If you are a shoemaker, make shoes. If you are a baker, bake bread. Do not dabble in stocks, or real estate, or foreign trade, unless you have studied these subjects as carefully as you studied your own craft."

"The man who tends to his own business will prosper. The man who tends to everyone else's business will fail. Let the shoemaker stick to his last, and the world will be better for it." — P.T. Barnum

Chapter 7 · Don't Indorse Without Security

Barnum's advice on indorsing (co-signing) notes is one of the most practical in the book. He had seen countless men ruin themselves by guaranteeing the debts of others.

"Never indorse a note for any man, unless you are perfectly willing to pay it yourself. And even then, be sure you have security. The friendship that requires you to indorse is not a friendship worth keeping."

He tells a cautionary tale: a young man of good character indorsed a note for a friend who was starting a business. The friend's venture failed, and the young man was forced to pay the debt. He lost his savings, his credit was ruined, and it took him ten years to recover. "The friend who asked him to indorse," Barnum observes, "was not a friend at all—he was a man who was willing to risk his friend's future for his own gain."

Barnum offers this simple rule: "If you cannot afford to lose the money, do not indorse the note." And even if you can afford it, he adds, require security. A man who is truly worthy of your trust will not object to providing security; a man who objects is probably not worthy of your trust.

Chapter 8 · Advertise Your Business

As a showman who built a fortune on promotion, Barnum was uniquely qualified to discuss advertising. He considered it essential to success in any trade.

"Advertising is to business what steam is to machinery—it multiplies the power of the engine. Without it, you may work hard and accomplish little. With it, your efforts are multiplied a hundredfold."

Barnum criticizes the common practice of spending money on stock and equipment while neglecting advertising. "What is the use of having the best goods in the world," he asks, "if nobody knows you have them?"

He advises his readers to advertise constantly and creatively. "Put your name before the public in every honest way. Use the newspapers, use handbills, use signs—and make sure your advertising is clear, truthful, and attractive."

He also warns against the temptation to stop advertising when business is good. "The time to advertise is when you least think you need to," he writes. "For when business is good, your competitors are also doing well, and they are advertising—if you stop, they will take your customers."

"Advertising is like a pump—it draws water up from the well. Stop pumping, and the water stops flowing. Keep pumping, and the stream never runs dry."

📌 Key Takeaways from Playbook 2

• Economy is wisdom: Spend wisely, not miserly.
• Extravagance leads to ruin: Live within your means.
• Choose your company wisely: Associate with those who elevate you.
• Be systematic: Order creates efficiency.
• Stay informed: Read newspapers daily.
• Avoid speculation: Stick to what you know.
• Never indorse without security: Protect your credit.
• Advertise relentlessly: Make yourself known.

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Adapted from the Original work by P.T. Barnum

Public domain (1880) · This adaptation follows the playbook series format