"The Richest Man in Babylon"

"The success secrets of the Ancients – the most inspiring book on wealth ever written"

“…they are not secrets but truths which every man must first learn and then follow who wishes to step out of the multitude that, yon like wild dogs, must worry each day for food to eat.” – Kalabab, a character from “The Richest Man in Babylon.”

If you care one bit about your personal finance, how to manage your assets and what to do to improve your lot in life, you must get hold of this book. The greatest thing you can do is educate yourself and understand your own assets so reading really is the way forward. Admittedly, this particular book title sounds a little far fetched but this owes to author choosing not the usual manner of most self help books, but instead a fictional narrative to tell a tale of financial wisdom. And it all takes place in Babylon, 5000 BC…

“Money is the medium by which earthly success is measured.

Money makes possible the enjoyment of the best the earth affords.

Money is plentiful for those who understand the simple laws which govern its acquisition.

Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon, six thousand years ago.”

George S Clason’s famous “Babylonian Parables” are considered by many to be among the greatest on the subject of personal finance, money management and wealth creation. Conceived in the 1920s, the “stories” were published as a series of information pamphlets, taken up and circulated by banks and financial institutions. Years later the collection was published as a best selling book.

Chapters:

• Foreword
• The Man Who Desired Gold
• The Richest Man In Babylon
• Seven Cures For A Lean Purse
• Meet The Goddess Of Good Luck
• The Five Laws Of Gold
• The Gold Lender Of Babylon
• The Walls Of Babylon
• The Camel Trader Of Babylon
• The Clay Tablets From Babylon
• The Luckiest Man In Babylon
• An Historical Sketch Of Babylon
• The Richest Man in Babylon

Though the language is like that found in the Bible (which some people may find distracting) the basic message throughout is clear and one of common sense and good habits. This manifests as one man’s attempt to get ahead and make something of his life by seeking the advice of an older, wiser and significantly wealthier merchant named Arkad.
Throughout the book the Yoda-like Arkad appears to relate anecdotes to eager listeners, including the main character, all of whom wish to learn the secrets of success in the hope they may possess the things vast riches affords. They debate and contest his teachings, claiming that the tasks and ideas he proposes are unachievable, but naturally, Arkad has the last word and persuades the few with the true desire for greater wealth to become self empowered by exercising certain success principles. He goes on to tell of the Seven Cures for a Lean Purse:

1. Start thy purse to fattening
2. Control thy expenditures
3. Make thy gold multiply
4. Guard thy treasures from loss
5. Make of thy dwelling a profitable investment
6. Insure a future income
7. Increase thy ability to earn

The “cures” are elaborated by Arkad, each featuring a tale, a lesson and a moral. Some of the advice given is obvious, some not so obvious, but true all the same, and thoroughly deserving as to be included and necessary reminders.

The book owes its success to the reader observing the experiences of fictional characters, which both entertain and inspire, as well as existing in an ancient civilisation. The subtle clue here is that the principles outlined have stood the test of time, and are universal and unchanging. But it is also a book which requires something of you and your own efforts: work ethic, a good attitude, goal setting and a thirst for knowledge. It’s all too easy to read it once, feel fired up, but gradually forget the advice and slip back into the old, not to mention expensive habits!

In one story the King of Babylon summons Arkad in the wake of an economic crisis and asks that he teach his wisdom to 100 people of various occupations within the city.

“Our city is in a very unhappy state because a few men know how acquire wealth and therefore monopolize it,” the king says, “while the mass of our citizens lack the knowledge of how to keep any part of the gold they receive.”

“It is practical, your majesty,” assures Arkad. “That which one man knows can be taught to others.”

Two weeks later, the one hundred assemble before Arkad who proceeds to explain the simplest and perhaps most important lesson of all.

“Listen attentively to the knowledge that I will impart. Debate it with me. Discuss it among yourselves. Learn these lessons thoroughly, that ye may also plant in your own purse the seed of wealth. First must each of you start wisely to build a fortune of his own. Then wilt thou be competent, and only then, to teach these truths to others.”

As entertaining as it is, the book contains some real nuggets worth lingering on, most notably in the story “The Five Laws of Gold” which describe the correct acquisition and management of money inscribed upon a clay tablet. Nomasir, son of the successful Arkad, sets out to make his way in the world, armed only with a bag of gold from his father and the five laws upon the tablet:

1. Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.

2. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.

3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.

4. 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 who are skilled in its keep.

5. 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.

Nomasir returns 10 years later and tells of his disastrous attempts with a business scheme, how he was deceived, robbed, impoverished, made homeless and eventually sold into slavery. After many years and several hard-learned lessons, Nomasir earns his freedom not to mention a successful livelihood, owing all to the teachings bestowed upon him by Arkad’s wisdom. Most importantly of all, he says, is that he realised the 5 laws of gold were and are worth more than gold itself.

I find myself coming back to “The Richest Man in Babylon” time and time again as a refresher and reminder, and more often than not will enthusiastically recommend it all over again to those it could benefit. And it’s perhaps this book alone which has prompted me to read other personal finance books to broaden my understanding of how money works.

It's not unusual for people to have no time for reading, especially when it's a strangely titled book with old fashioned words and stories from the ancient past. However, this book could well be the solution to your money problems for the rest of your life. It can be read in fewer than two hours and costs less than a good lunch out! Get it!