Book Review

The Richest Man In Babylon

Yusri Kardo

13 Apr 2022 • 9 min read

In essence this books talks about the management of money which is still similar as the days of Babylon. A great book that highlights the importance of money as it is a medium which allows for the enjoyments of earth and utilised for so many aspects of life. This books provides advice on the acquisition, management and investing of this tool.

"Babylon became the wealthiest city of the ancient
world because its citizens were the richest people of
their time. They appreciated the value of money.
They practiced sound financial principles in acquiring
money, keeping money and making their money
earn more money. They provided for themselves
what we all desire . . . incomes for the future." - George S. Clason

My main learning/focus areas from the books are listed below:

The Man Who Desired Gold

Two long-term childhood friends are having a conversation about money which they lack. They reminisce about how they used to spend money so recklessly and the bad position they are in financial due to past choices. They also compare themselves to others in the city of Babylon, the rich and the poor, and question why they are not in the same position as the wealthier. When making comparisons to the people that are rich, they identify that the rich have continues streams of income that is not dependent on the work they put in. After identifying this, the two set out to make themselves financially prosperous through gaining knowledge from one of the wealthiest person in Babylon, a man named Arkad.

The Richest Man in Babylon

The lessons learnt are below:

You first learned to live upon less than you could earn.
Next you learned to seek advice from those who were competent through their own experiences to give it.
And, lastly, you have learned to make gold work for you.

Seven Cures for a Lean Purse

First the people of Babylon had to learn how to become wealthy. Money flows to those who know how to control and acquire the tool. Whereas those who do not know how to manage and keep money in their possession end up in a bad financial situation. Arkad, the wealthiest man in Babylon teaches the 7 cures for a lean purse:

start thy purse to fattening - save money - as much as you can or feel comfortable, but this is the start.
control thy expenditures - do not grow your expenses to equal your income only keep the necessary expenses you need.
Make thy gold multiply- a man's wealth is the income that he builds. The streams of income that he builds that continue to flow into his pockets. Arkad explains how he successfully loans people money that brings him returns. To put each coin to labouring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse."
Guard thy treasures from loss “misfortune”. do not lose money through bad investments. secure your principal. Study the investment carefully before parting with your money. Guard thy treasure from loss by investing only where thy principal is safe, where it may be reclaimed if desirable, and where thou will not fail to collect a fair rental. Consult with wise men. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments."
Make of thy dwelling a profitable investment: own your home which you sleep in and raise your children. Own thy own home."
Insure a future income: Therefore do I say that it behoves a man to make preparation for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them. This lesson shall instruct thee in providing a full purse when time has made thee less able to learn. No man can afford not to insure a treasure for his old age and the protection of his family, no matter how prosperous his business and his investments may be. Provide in advance for the needs of thy growing age and the protection of thy family."
Increase the ability to earn: desire is required for you to increase your ability to earn. This means to increase your interest, concentration, understanding, more persistent, effort to increase your ability which in turn will increase your earning capacity. Thus, the seventh and last remedy for a lean purse is to cultivate thy own powers, to study and become wiser, to become more skilful, to so act as to respect thyself.

Quote:

"He must pay his debts with all the promptness within his power, not purchasing that for which he is unable to pay. He must take care of his family that they may think and speak well of him. He must make a will of record that, in case the Gods call him, proper and honourable division of his property be accomplished. He must have compassion upon those who are injured and smitten by misfortune and aid them within reasonable limits. He must do deeds of thoughtfulness to those dear to him.

Meet the Goddess of Good Luck

In this chapter Arkad explains that you cannot gain your income through the source of betting alone. The chapter also explains how we are all provided with chances of luck that we must cease or else it might slip our hands if we do not act. Good luck waits to come to that man who accepts opportunity. Procrastination is the worst enemy to success as through procrastination we lose opportunity. Good luck can be enticed by accepting opportunity. Those eager to grasp opportunities for their betterment, do attract the interest of the good goddess. Action will lead the individual forward to the success that they desire.

The Five Laws of Gold

The chapter goes through a story about a man and his journey to a city of opportunities. Here he meets a group of men who are deceitful men that seek victims, this experience teaches the character a lesson in looking out for himself. By placing his trust, money, and time in the wrong people the character loses money, time and other opportunities. Furthermore, due to no experience and previous employment for several years, his had no ability to earn putting him in a very bad position. The tables turned for the character when he found employment. He saved his money. He then made an investment under the guidance of a wise man which was profitable. He joined this group for further profitable investments in the future.

Find below the five laws of gold:

Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth or his earnings to create an estate for his future and that or his family. Accumulating money allows you to save and accumulate more by allowing the money to work for you.
Gold laboureth diligently and contentedly for the wise owner who finds for its profitable employment, multiplying even as the flocks of the field. When you have money, you have the patience to grasp the opportunity to make more profits and make the money to multiply for you.
Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling. Money stays with the owner who seeks advice from wise men who know how to handle money and increase it
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. When handling money, it is better to utilise your own judgement in invest it in businesses which he is familiar with or invest on the advice of skilled men who knows the way of money.
Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment. There are always schemes ad tricks that promise great returns of money but all these schemes always end up with the investor losing money when this is transferred to the person making huge promises

The Gold Lender of Babylon

Money puts a man in a different position to other men

He is scared to lose money
He is scared to be tricked away from it

In the chapter it discusses how if you desire to help someone make sure that it does not burden yourself. Therefore, do not lend money to people who will not repay you or where you will find it difficult to get your money back. In order to ensure that the person repays the debt the gold lender make sure to take a worthy possession as a deposit or he insures the loan with something else that belongs to that person like a house. Furthermore, the gold lender tells a story of how human emotions and lending money to people is not a good mix and it can cause regret and consequences to the individual who is lending the money. Lending is better or smarter when you are lending to someone who is using the money to return profits that can repay the loan rather than them using it for indiscretions. Lending unwisely causes issues for the lender to get their money back therefore lend with caution and only to the wise and experienced.

Quote:

Better a little caution than a great regret

The Walls of Babylon

The walls of babylon protected the city from several attacks throughout babylons history to prevent intruders from stealing and taking over the city

Like the great walls of babylon we all must and should desire to protect ourselves from intruders.

This includes insurance, savings accounts and dependable investments that gaurd us against unexpected tragedies.

Quote:

We cannot afford to be without adequate protection

The Camel Trader of Babylon

Below is an extract of the story from the chapter:

"Being young and without experience I did not know that he who spends more than he earns is sowing the winds of needless self-indulgence from which he is sure to reap the whirlwinds of trouble and humiliation. Paid as I could and for a while all went well. But in time I discovered I could not use my earnings both to live upon and to pay my debts. Creditors began to pursue me to pay for my extravagant purchases and my life became miserable. I borrowed from my friends, but could not repay them either. Things went from bad to worse. My wife returned to her father and I decided to leave Babylon and seek another city where a young man might have better chances.

"For two years I had a restless and unsuccessful life working for caravan traders. From this I fell in with a set of likable robbers who scoured the desert for unarmed caravans. Such deeds were unworthy of the son of my father, but I was seeing the world through a coloured stone and did not realize to what degradation I had fallen. We met with success on our first trip, capturing a rich haul of gold and silks and valuable merchandise. This loot we took to Ginir and squandered.

"The second time we were not so fortunate. Just after we had made our capture, we were attacked by the spearsmen of a native chief to whom the caravans paid for protection. Our two leaders were killed, and the rest of us were taken to Damascus where we were stripped of our clothing and sold as slaves."

He escaped and returned to babylon where he worked to repay his debts to each lender. He found his soul and freedom when he was able to repay his debts.

Quote:

He found his own soul when he realized a great truth, a truth that had been known and used by wise men long before his time. It has led men of all ages out of difficulties and into success and it will continue to do so for those who have the wisdom to understand its magic power. It is for any man to use who reads these lines:

WHERE THE DETERMINATION IS, THE WAY CAN BE FOUND

FURTHER QUOTES FOR YOUR REFERENCE:

- Opportunity is a haughty goddess who wastes no time with those who are unprepared

- Will power is the unflinched purpose to carry a task you set for yourself to fulfillment

- Then learn to make your treasure work for you. Make it your slave. Make its children and its children's children work for you.

- "Insure an income for thy future. Look thou at the aged and forget not that in the days to come thou also will be numbered among them. Therefore, invest thy treasure with greatest caution that it be not lost.

- "Wealth that stayeth to give enjoyment and satisfaction to its owner comes gradually, because it is a child born of knowledge and persistent purpose.

- "To earn wealth is but a slight burden upon the thoughtful man. Bearing the burden consistently from year to year accomplishes the final purpose.