The Richest Man In Babylon 

Submitted by Dicky Pearce

February 26th, 2023

George S. Clason's "The Richest Man In Babylon" is a classic self-help book that has stood the test of time. First published in 1926, the book offers practical financial advice through a series of parables and stories set in ancient Babylon. The book presents a set of principles and guidelines for building wealth and financial independence that are just as relevant today as they were nearly a century ago. 

The book is divided into a series of short stories or parables, each one teaching a key principle of personal finance. The stories are set in ancient Babylon, a thriving city where commerce and trade were the driving forces of the economy. Despite being written nearly a century ago, the lessons in the book are timeless and continue to resonate with readers of all ages. 

What makes "The Richest Man in Babylon" so relatable is its focus on common sense principles that anyone can apply, regardless of their income or financial background. The book is written in simple language and uses relatable examples to illustrate key financial concepts. It is an excellent resource for complete beginners who are looking to take control of their finances and build wealth.

One of the key principles that the book stresses is the importance of saving. In the first story, "The Man Who Desired Gold," we meet Arkad, the titular richest man in Babylon. He attributes his wealth to a simple rule: "Start thy purse to fattening." Arkad advocates saving at least one-tenth of your income, no matter how small it may be. He believes that this is the key to financial success, and that saving and investing wisely is the path to wealth.  These rules include: 

1. Start thy purse to fattening: save at least one-tenth of your income. 

2. Control thy expenditures: live within your means and avoid unnecessary expenses.

3. Make thy gold multiply: invest your savings wisely to earn interest or profits. 

4. Guard thy treasures from loss: protect your investments and avoid risky ventures. 

5. Make of thy dwelling a profitable investment: own your own home and make improvements that increase its value. 

6. Ensure a future income: plan for retirement and ensure a steady stream of income in your old age. 

7. Increase thy ability to earn: continue to learn and develop new skills that will increase your earning potential.

Another key principle that Clason emphasizes is the power of compounding. In "The Five Laws of Gold," we learn that wealth grows exponentially when it is invested wisely. By following these principles, Clason argues that readers can maximize the growth of their wealth and ensure long-term financial stability. The book emphasizes the importance of taking a long-term view when it comes to investing, and advises readers to be patient and persistent in their pursuit of financial success. The laws are as follows: 

1. Gold comes easily and in great abundance to the person who saves at least one-tenth of their income to create an estate for their future and that of their family. 

2. Gold works best when it is invested in profitable and proven ventures. When making an investment, one should seek the advice of experts in the field to ensure that the investment is wise and safe. 

3. Gold can be lost quickly when invested in ventures that are not well understood or are not properly managed. One should always invest in ventures that they understand and can manage. 

4. Gold can be kept and grown by providing excellent service and quality in one's business or profession. One should always strive to provide value to their customers or clients. 

5. Gold can be multiplied through prudent investments and by carefully diversifying one's portfolio. One should not put all their eggs in one basket but should spread their investments across different assets to minimize risk. 

"The Camel Trader of Babylon" is a cautionary tale that warns against the dangers of living beyond one's means and relying too heavily on debt. This story of Dabasir, a wealthy camel trader, highlights the consequences of overspending and the vicious cycle of debt. Despite his lavish lifestyle and successful business, Dabasir spends more than he earns, borrowing money to sustain his expensive habits. As his debts mount, Dabasir becomes increasingly desperate to repay them and turns to risky investments and schemes to make quick money. However, his attempts fail, and he ends up losing even more money. The story emphasizes the importance of living within one's means, avoiding debt, and planning for the future. Dabasir's downfall serves as a warning that debt is a trap that can quickly spiral out of control and lead to financial ruin. Clason's message is particularly relevant in today's world, where people are often tempted to spend more than they earn and rely on credit to finance their lifestyles.

The book even delves into the concept that is Lady Luck, a powerful force that can either make or break one's financial success. In "The Luckiest Man in Babylon," we learn that luck is not entirely out of our control. The story highlights the importance of being prepared for opportunities when they arise, as well as the need to take calculated risks to increase one's chances of success. Clason emphasizes that luck is not just a matter of chance, but also a result of hard work, perseverance, and being ready to strike once those golden opportunities present themselves.

Conquering the Spirit of Procrastination is another key message in the book. In "The Clay Tablets of Babylon," we meet Bansir, a talented but procrastinating musician who fails to achieve success until he learns to overcome his habit of putting off important tasks. The story underscores the importance of taking action and not delaying important decisions that can impact one's financial well-being. Clason encourages readers to adopt a proactive attitude towards their finances and to take small steps every day towards achieving their financial goals. 

Through the story of Nomasir, in "The Walls of Babylon," we meet a soldier who is forced to take control of his finances after realizing that he has been living in poverty despite earning a good income. Clason emphasizes the importance of self-discipline and taking control of one's financial situation. He highlights the fact that financial success is not just about making money but also about managing it wisely. In today's world, where it's easy to fall into debt and overspend, the lessons from "The Walls of Babylon" are more relevant than ever. The story serves as a powerful reminder that financial success requires self-discipline, patience, and a long-term perspective.

"The Richest Man in Babylon" is a timeless classic that offers practical and actionable advice for achieving financial success. The principles outlined in the book are straightforward, easy to follow, and applicable to anyone who is willing to put in the effort. The stories and parables make the advice engaging and relatable. Whether you're a complete beginner or a seasoned investor, "The Richest Man in Babylon" is a must-read for anyone who wants to achieve financial independence and security.