The Richest Man In Babylon Summary

George S. Clason’s book “The Richest Man in Babylon” is a timeless classic of personal finance content.  Clason. Published in 1926, the book is a collection of parables set in ancient Babylon, providing practical and timeless principles for managing money and achieving financial success.

At the heart of the book is the character Arkad, known as the Rich Man of Babylon, who shares his wisdom on building wealth with his subjects Arkad’s principles he conveys through interesting stories include basic financial lessons such as saving, investing, debt avoidance and sound financial decisions.

The Man Who Desired Gold

In this rule, Arkad tells his friends that to make our wallets fat, that is, to increase our wealth, we should save one-tenth of our income, this will make our purse fat soon. Arkad said that he had also started similarly and used to save one-tenth of his income every day.

Giving an example, Arkad said that what would happen if you put ten gold coins in your basket every morning and take out nine gold coins every evening?

“After some time it will be filled!”

Therefore, it is important that we should save one-tenth of our income, this will make our purse thicker and we will also develop the habit of saving money.

The Richest Man in Babylon

When Banseer and Kobbi met Arkad, they asked him how he got such good fortune that he was rich. He was also like him. He too had studied equally and was once as poor as them.

Both of them might have worked harder than Arkad but still Arkad had more money. In response to this question, Arkad told that once he had worked for a very rich man, Algamish. In return he asked the rich man the secret of his wealth.

So the man told him about the “Laws of Making Capital” which he had applied in his own life. Arkad also started following the same laws and within no time he also became rich. Arkad also told Banseer and Kobbi what he had learned about money.

The first and most important basic method of money saving is to keep aside 10% of your earnings, and try to meet your expenses in the remaining 90%, and if you can save even this remaining 90% then more. Is also good.

If you want to deposit a lot of money then there are two most important methods which you have to apply. First is time and second is study. When we talk about time, everyone has it.

But the problem is that some people use this time to become even poorer. They engage themselves in so many activities that they have no time left for money making activities.

When you busy yourself with so many activities, it passes your time but it will not help you accumulate wealth.

On the other hand, when it comes to study and research, there are two types of lessons which can be useful for those who want to earn money. The first is about a specific subject and the second is about how to find it, which most people do not know. Both these types of learning are valuable as well as useful.

Seven Cures for a Lean Purse

1-Start thickening your wallet. Even if we spend 90% of our income and save 10%, our wallet will start getting heavy. For some time we will have to face problems but after a few days we will learn to live with 90% of it.

2-Control your expenses. It is a strange truth that our essential expenses will increase with our income, if we do not try to stop them. That’s why budget your expenses so that we have money to meet our needs.

3-Increase your money. Whatever money we save, we should put that money to work so that it grows to us like crops in the fields. Create a stream of wealth that keeps giving us money whether we work or not.

4-Protect your treasure from damage. To protect your investment, invest your money where the principal amount is safe and can be withdrawn when needed and get good interest from it. Take advice from wise people and use their knowledge to protect your money from unsafe investments.

5-Convert your housing into a profitable investment. By living in a rented house, we give money to others and by living in our own house, we save that money. That’s why buying your own home and becoming its owner can also be a good investment.

6- Determine future income. Everyone wishes to make arrangements in advance for the security of their old age and their family. That is why every person should make some such investments, which will provide him security in future and they will be available even when his expected time comes.

7- Increase your earning capacity. The more we learn, the more we earn. The person who works harder to learn his work gets the same reward. That’s why we have to find jobs where we can learn and earn more.

Meet the Goddess of Good Luck

Good luck also knocks at the door of those who accept the right opportunity. Good luck is something that everyone wants for themselves. We need good luck in our life, business or any work.

But many people think that “good luck” is a thing given by God. But in reality, good luck is nothing but the opportunities that we get in life through which we can change both our time and luck.

Now who would not want good luck in his business or career? But unfortunately, due to their habit of procrastinating, many people are not able to take full advantage of the opportunities given to them in life.

Whatever opportunity we get, we should take full advantage of it. A person should have enough ability to understand any kind of business proposal.

This is a strong and effective way to attract good luck, which is better than sitting idle. Some people keep waiting as if everything will come to them on a silver plate but that is not happening because you will have to create your own good luck and this will be hard work.

The Five Laws of Gold

There are 5 rules to strengthen your financial position and overcome your money-related problems. which are as follows

  • Save 10% of your earnings for yourself and your family.
  • Adopt the path of profit for your earnings.
  • For investment, advice should be taken only from intelligent and experienced people.
  • Money gets wasted if advice is not taken from the right people. Those who do not have investment knowledge, or experience, or are not familiar with the concept, should not take investment-related advice from them.
  • Money becomes useless if invested in the wrong activities. One should not desire more than one’s capacity, keep company with wrong people, and follow the advice of those who offer greed. Fulfillment of one’s wrong desires and investing money where one does not know only leads to loss.

The Gold Lender of Babylon

In this chapter, the precautions that should be taken while lending have been mentioned through the story of a person named Rodan.

Pleased with Rodan’s work, the king of Babylon gave him some coins as a reward, which he was happy to receive and he also got scared because as soon as everyone came to know that Rodan had received coins as a reward, people started asking for loans. He did not understand. It was coming to whom to give and to whom not to give. To solve this problem, he took advice from a person named Maithon who was a moneylender.

Maithon told some important things that should be kept in mind while giving loans.

  • If a person asks for a loan then ask the reason and give the loan only if the reason seems right.
  • If a person needs a loan for his business, then he should know how much knowledge he has about the work he wants to do because if there is no knowledge then there is a possibility of business failure.
  • If you lend to someone, agree so that the borrower can repay the loan on time.
  • Find out information about the person to whom you lend and what work he does, and ask other people about him too.
  • While giving loans, make sure to talk about returns also.
  • Loan should be given thoughtfully and not on emotions.
  • While lending, keep in mind that if someone is unable to lend then you should not face any problem, hence lend only as per your capacity. It is important to take steps thoughtfully otherwise losses occur.

The Walls of Babylon

An outstanding example of a human being’s needs and desire for protection. This chapter tells the story of a soldier who guarded the gates of Babylon. The Walls of Babylon were very popular because of their one hundred and sixty feet height.

Once an enemy attacked Babylon. The battle continued for four weeks but then due to the height and thickness of the wall, the enemy accepted defeat and retreated.

What we can learn from this story is that if we want, we can guard ourselves from any unexpected tragedy. Just need to keep yourself calm.

The Camel Trader of Babylon

In this chapter the author has given ways to avoid debt. The author has told the solution to avoid debt through a story that a person named Tarkad, who lived in Babylon, was drowned in debt. In this situation he met Debezir, a camel trader who told him about himself and how he too had fallen into debt due to which he had to go to jail and become a slave.

He was bought by the chief of Syria, there he used to take care of the camel of the chief’s wife Sira but knowing that he did not like that work, Sira told him an important thing that “What does he really feel, does he want slavery or freedom? If one wants to become a citizen, if one does not want to remain a slave then one should not run away from his responsibilities but should face every situation.

Emboldened by this, Debezir worked hard, paid off his debts, and became a prominent self-reliant man in Babylon. If you decide to do something, the path becomes clear automatically.

The Clay Tablets from Babylon

In this chapter, the author has given some methods of getting rid of debt which were written by Debezir in the tablets which were found during the excavation of Babylon, which was mentioned by Professor Alfred H Shrewsbury to another Professor Franklin Codewell on how to adopt those methods and get rid of debt. Were freed from.

Some ways to get rid of debt are as follows

  • You should save 10% of your earnings. Keeping your family and yourself in mind, you should save money for the future. One should invest in the right place after taking advice from experienced people. 70% should be used considering the needs of the family; spending more than this should be avoided. You should repay your loan with 20% of your income.
  • Make a list of names of people from whom you have taken loan and also write down the amount of loan taken so that you can repay it on time.
  • Meeting those to whom one has to give loan, apologizing and assuring them that they will gradually repay the loan with 20% of their earnings.
  • Act and follow your plan. 70% for family, 10% savings, 20% loan repayment.
  • Stick to your goal with hard work and follow it to achieve it.

The Luckiest Man in Babylon

A new character has been introduced in this chapter whose name is Sharu Nada who was the merchant prince of Babylon. He too was once a slave. He shared the difficulties of his life and also told how he got rid of all the problems,

And now he had enough money to buy his freedom. Although he had become a merchant today, there were days when he was not sure whether he would be able to leave his master’s job or not. The truth is that work is the key to wealth. So he worked very hard and became a successful merchant.

The Richest Man In Babylon Conclusion :

This book is about collective and individual success. Success means progress resulting from our efforts and abilities. Proper preparation is the key to success. Our actions cannot be wiser than our thoughts. We always dream of being rich. We don’t do anything that we really should do to make our dream come true. Some important tips to fulfill dreams:-

  • You can never be rich if you save at least 10% of your earnings and spend it by investing.
  • Always take advice from experts in that field.
  • Do not cut the tree of your savings before it bears fruit.

Until it reaches a point where spending doesn’t matter anymore.

Wealth is like a tree whose seeds are like savings for us. When we plant that seed today, tomorrow it will become a tree and one day this tree (wealth) will grow so much that we can enjoy life through its fruits.

The Richest Man In Babylon Book Review:

George S. The book The Richest Man In Babylon written by Clason tells us about the rules of wealth creation by which we can achieve financial freedom. In this book, 7 such principles of becoming rich have been described, using which any person can become rich. This book suggests that we should keep a part of our income with ourselves. We must save 10 percent of our income and meet our expenses with the remaining 90 percent.

In this book, the author has tried to explain the principles of wealth in a very simple way through stories. In this book, the author tells that every person should pay himself first, that is, he should first save a certain part of his income and then meet the remaining expenses from the remaining money.

What are the key lessons from the book?

The book offers many important financial lessons, including the importance of saving money, investing wisely, avoiding debt, sound financial advice, and taking calculated risks to be involved.

What is “The Richest Man in Babylon” about?

The book is a collection of parables in ancient Babylon, each emphasizing financial wisdom and principles for acquiring wealth and financial success.

What is the significance of “Make thy gold multiply”?

This principle emphasizes the importance of investing and letting your money work for you. It encourages readers to seek profitable opportunities and increase their wealth through smart investments.

What are the 7 lessons in The Richest Man in Babylon?

1. Save a portion of your income regularly.
2. Invest wisely to grow your wealth.
3. Be cautious with risky investments and seek advice.
4. Own your home and make it a source of income.
5. Plan for retirement and future financial security.
6. Continuously improve your skills and seek opportunities for advancement.
7. Leverage the expertise of others in financial matters.

Who is the richest man in Babylon, and what makes him wealthy?

Arkad is portrayed as the richest man in Babylon. His wealth comes from following the principles of saving, investing, and making his money work for him. He shares these principles with others in the book.

How can I apply the lessons from “The Richest Man in Babylon” in my own life?

To apply the lessons, consider creating a budget, saving at least 10% of your income, investing wisely, avoiding unnecessary debt, and seeking advice from financial experts. Consistently practicing these principles can contribute to long-term financial success.

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