The Richest Man In The Babylon Book By George S. Calson
Note: This article is based on the first chapter only. Therefore, one should not judge the entire book by reading this article alone.
Today, I’d like to talk about the greatest money management book of all time, “The Richest Man in Babylon.”
Who is the book for?
“The Richest Man in Babylon” is a book written by George S. Clason. It is a personal finance classic that offers timeless advice on wealth-building and financial principles through a collection of parables set in ancient Babylon. The book is for anyone seeking to improve their financial literacy and develop good money management habits.
How Did Babylonian People Learn Lessons About Money?
Four thousand years ago, the richest civilization in the world and the richest city in the world was called Babylon. Ancient Babylon was a significant city-state in ancient Mesopotamia, located near the Euphrates River in present-day Iraq. It was one of the most important cultural and political centers of the ancient Near East. The Babylonians made significant contributions to mathematics, astronomy, and architecture. However, the people of Babylon were taught lessons about money through parables and stories. They were taught that poverty is a curse, money is real power, and how to improve their finance management skills, how to earn money, and how to use that money. Invest in the right place.
The book that George Samuel Clason wrote is called “The Richest Man in Babylon.” The book was first published in 1926. This book was written 100 years ago, and since then, it has been a hugely popular book. The lessons given in the book play a very important role in today’s modern economy.
The Richest Man in Babylon
The book is about three boys named Banshee, Kobai, and Arket from the ancient city of Babylon. And this Arket is said to be the richest man in Babylon. Banshee, Kobai, and Arket are three friends who grew up at the same time, attending the same school, and studying under the same master. But, in time, Arket became the richest man in Babylon, and the other two were worse off.
Kobai wants to borrow two coins from Bansir, saying that he will participate in dinner with a great person. But, Banshee cannot give. Banshee and Kobai both discuss that they live in the richest city in the world “but they don’t really have anything of their own.” They still subsist on panta rice with curdled goat’s milk. According to Bansir, he works day and night and earns money, but somehow he cannot be financially independent. However, on the other hand, their friend Arket “who is now the richest man in Babylon comes to him from the king of the city of Babylon for advice on how to keep the money.” Get better at financial management skills, and how to impress the people of Babylon about money.
So they thought that they would go to their friend Arket And ask him the secret behind his wealth. SO, one day they go to Arket and ask what is the main secret behind his success and wealth?
Arket’s answer was, he said his willpower helped him to being successful and wealthy. When Arket realized that no matter how hard he worked. He cannot improve his position if he did not know the secret about gold, if he did not have any money management skill, if he could not invest his wealth in the right work or asset.
How Arket got The First Step To Get Rich?
Arket was working as a bookkeeper. One day, the richest man in the city of Babylon, his name was Algemish, came to Arket for some important work. Arket said to the person, “I can do your job if you tell me, what is the secret behind having so much gold and being rich?” Then the old man Algemish smiled and said that, “Wealth, my boy, it is a matter of discipline and wisdom. I was able to better my economic condition only when I started realizing that a part of what I earn is only for myself. That means a part of all I earn is mine to keep.”
After listening to it from then, Arket started saving money. And a year later, Algemish met up with Arket again. Algemish asked Arket, “Did you keep the money for yourself? Have you invested your money somewhere?” Then Arket says, “Yes, I have saved money since 1 year and give it to my friend who has a bricks business, he will go to the city and collect jewelry from there by Arket’s gold. After that, they sell it in the market and they will become rich.” Algemish laughed and gave a wonderful dialogue, “All fools must learn.” He said this because Arket could not invest wisely his wealth in the right way.
Arket said to Algemish, “Please sir, teach me the secret of wealth and success.”
Then Algemish told Arket about the five roles of Gold. It is good to mention that now as we use money as currency they used gold for everything.
The Five Laws of gold which I think is the best part of this book
01
“Gold comes gladly and 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.”
If you save 10% of your income and invest it in one of your assets, then you will never lack gold or lack money. That means save a portion of your earnings, and let your money work for you or pay yourself first.
02
Invest wisely, and do not succumb to reckless spending.
If you can invest or use your saved gold or money in a smart or wise way without spending it recklessly, then you will never look back. Then your money will never be short.
Arket began to collect money for the second time. When Algemish met him again, he asked, “Have you collected money?” Have you invested it in the right place? Arket says that yes, I have saved the money. And I have a friend who is in the sheep business. I helped him buy the sheep, and he got a percentage of the profit of it. Algemish is happy after hearing this and asked again, “What are you doing with your part of profit”? Arket says he is spending it in various places to buy and is keeping some money to use to buy camels.
At this place, the old man Algemish says a wonderful thing, you eat the children of your savings. Then how do you expect them to work for you? How can they have children that will also work for you?
03
If you can invest your gold with the advice of right and intelligent people who have an understanding of what you want to invest in, then your gold will always be safe.
Suppose if you want to invest in the gold business or cloth business, then take advice from those who are already doing the gold business or those who are already doing the cloth business, how to invest about you. Suppose someone is earning 10 lakh rupees. If you want to earn 10 lakh rupees, then you take advice from the person who is earning 10 lakhs. You should never take advice from someone who has no experience of earning 10 lakh rupees. So, seek the men whose daily work involves handling money.
04
If you invest your gold in a business that you have no idea about, you will destroy your goal. Like Arkad, whose friend was in the brick business, but he gave money to his friend to invest in the jewelry business. As a result, all the hard-earned money was wasted.
05
Avoid scammers and tricksters, and you will do well.
Many people will come and promise to multiply your money exponentially. When you keep yourself alert from such people, you can save your gold and grow your money by investing in the right people and programs in the right places. Your money will never decrease.