The Richest Man in Babylon (Summary)
Seven Cures for Lean Purse
- Start thy purse to fattening: Put 10% of every income away for savings or investment.
- Control thy expenditure: Make a budget and stick to it no matter what.
- Make thy gold multiply: Invest the money put away so that it can reap compounding interests.
- Guard thy treasure from loss: Invest only in ventures that you are sure of recouping at least your principal.
- Make thy dwelling a profitable investment: Own your own home.
- Secure thy future income: Provide for your retirement.
- Increase thy ability to earn: Develop and improve yourself to be able to earn and manage more money.
Goddess of Good Luck
- Procrastination drives away good luck.
- To attract good luck to oneself, it is necessary to take advantage of opportunities.
- Good luck can be enticed by accepting opportunities.
- In business deal, make payment immediately when you are convinced that the bargain is wise.
- Men of action are favored by Athena goddess of good luck.
The Five Laws of Gold
- “Gold cometh gladly and in increasing quantities 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.”
Meaning: Money comes to anyone who keeps at least 10% of his earnings for his future and that of his family in savings.
- “Gold laboreth diligently and contentedly for the wise owner who finds for it a profitable employment, multiplying even as the flocks of the field.”
Meaning: Money multiplies for those we invest it profitable businesses.
- “Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.”
Meaning: People who invest under the counsel of wise investors never lose their money.
- “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.”
Meaning: Those who invest in businesses they are unfamiliar with or without try the counsel of wise investors in the same business will lose their 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.”
Meaning: Those who invest their money in get-rich-quick schemes, those that invest based on the advice of tricksters and con artists, and those who invest based on emotions and not knowledge and experience will all lose their money.
Wisdom from the Gold lender
- Never let your money sit idle, let it work to make you more money by lending or investing in a profitable venture.
- If you desire to help a friend or family member, never do it in a way that will bring their burdens on yourself.
- Never lend money to some you are not sure can pay back.
- Never lend money without a collateral (security).
- Never feel obliged to give your hard-earned money to family members.
Lesson About the Walls of Babylon
- We cannot afford to be without adequate protection.
- We need to have insurance, savings and dependable investment to protect us and our families when tragedy comes.
Lessons From the Camel Trader of Babylon
- “He who spends more than he earns is sowing the winds of needless self-indulgence from which he is sure to reap the whirlwind of trouble and humiliation.” – Dabasir
Meaning: Never spend more than you earn.
- “My debts are my enemies, but the men I owe are my friends for they trusted me and believed in me.”-Dabasir
Meaning: Always pay your debts.
- “If a man has in himself the soul of a slave, will he not become one no matter what his birth, even as the water seeks its level? If a man has within him the soul of a free man, will he not become free and honoured in his own city in spite of his misfortune?”
Whatever you are is what you become. If you are slave, you become a slave no matter how free you are at the moment, and if you are a free man (both literally and financially), you become free even if you are currently enslaved.
- “The soul of a free man looks at life as a series of problems to be solved and solves them, while the soul of a slave whines.”
Winners recognize the challenges of life, forge ahead in spite of them and overcome them. Losers on the other hand complain about the challenges of life and do nothing about them.
- “Where the determination is, the way can be found.”
When you are determined enough, you will find a way.
The Luckiest Man in Babylon
Sharru Nada was the luckiest man in Babylon because he made hard work his best friend. His hard work helped him to become a free (both literally and financially) even though he was a slave.