The Richest Man in Babylon: Key Ideas

[Brother]

"The recipes in this book to save yourself from a skinny wallet can provide a basis for understanding financial laws."

George Samuel Clayson, author of the book, argues that the laws of financial growth have not changed since Babylon, the richest city in the world. His book is a collection of parables that are designed to show people how to become rich and not lose their wealth.

The man who dreamed of wealth​

The main characters, Benzir and Cobby, discuss their poverty with each other. They barely have enough for a meager food and clothing, although Benzir is a good artisan and Cobby is a good musician.

Previously, they just went about their business and only dreamed of wealth, but did not strive for it. We lived in an earn-spend mode. But now they decided to get rich.

They came to the conclusion that no matter how thick your wallet is, a truly rich person should have a gold mine, that is, a constant source of income. And to find their gold mine, Benzir and Cobby went for advice to Arcad, the richest man in Babylon.

Richest man in Babylon​

When they came to Arkad, they asked him how he got rich, because they had the same teachers, the same poor parents and absolutely equal status. Arkad replied that they do not know the laws of wealth or simply do not want to follow them. And he began to tell his story.

Arkad was an ordinary clerk, he only had enough money for food and some clothes, although he worked hard. He understood that knowledge and time are needed for wealth , but if everyone has an abundance of the latter, then Arkad did not have any special knowledge.

Everything was changed by a meeting with the usurer Algamish, who shared with him the secret of wealth. He told Arkad: “I opened the way to wealth when I decided that I should keep a part of everything I earned for myself . And you remember that."

After that, Arkad began to save a tenth of his income. He did not feel deprivation. Only sometimes he had a desire to buy some beautiful thing, but Arkad overcame himself.

After a while, Algamish met Arcade and asked how he disposed of his money. It turned out that Arkad gave his savings to a bricklayer to buy jewelry, so that he could then resell them and earn money. Algamish was angry. It is not surprising that a bricklayer who was ignorant of jewelry was deceived by slipping glass, and Arkad was left without his savings.

He took this error into account. During his next meeting with Algamish, he proudly announced that his affairs were getting better. But the teacher Arkada was again dissatisfied. As soon as the young man received income, he immediately let him go for entertainment. Arkad took this error into account as well.

Seven rules of enrichment​

Babylon was a very rich city, but over time, almost all the money ended up in the hands of a small number of people, and the bulk of them were poor and could not always buy themselves even food. To solve this problem, the king called Arcade and asked him to teach the people of Babylon to earn money. Arkad agreed.

Rule one: start replenishing your wallet​

The first thing you need to be wealthy is initial capital. Arkad invited his students to set aside part of their income.

Rule two: control your expenses​

How can you save money if you barely have enough money to live on?

Arkad explained to his students that their expenses would grow in proportion to their income, until they began to distinguish between basic needs and luxury and surplus.

Read the article "How to Smartly Save Money."

Rule three: increase your wealth​

The next thing you have to do is put the money into circulation.

"Each coin should work and bring constant income, which would flow into your wallet in an inexhaustible stream."

Arkad lent money at interest, you can find your own way to increase your savings. Here you can read about investing.

Rule four: protect your wealth from loss​

The basic principle of any investment is safety. Consult with those who understand this, and invest wisely, avoid the risk of being left behind.

Rule five: turn your home into a profitable venture​

Arkad invites his students to buy their own home.

Rule six: secure future income​

From specific advice, Arkad suggests buying houses and land or lending money.

Rule Seven: Improve Your Earning Skills​

Learn to invest more effectively, develop as a person, and live your family proud of you.

Meeting Her Majesty Luck​

In the Temple of Knowledge, Arkad discusses with other men what luck is. They share their stories, and everyone in the audience draws conclusions from them. Here are some:

• There is no need to delay making a decision. If something needs to be done, do it today.
• You need to pay immediately if you are sure that the deal is profitable.
• Luck will deign people to work, those who know how to use their chance and do not miss it.

Five laws of wealth​

If you were offered a pouch of gold or a tablet engraved with wisdom, which would you choose? Most would take gold. And in vain. Gold will go away, and knowledge will bring income all the time. Arkad formed his five laws of wealth.

1. Gold reaches out to those who save a tenth of their earnings to secure a future for themselves and their families.
2. Gold works in full force for a wise owner who invests it profitably in the business.
3. Gold needs protection, and therefore prefers caution and advice from wise people.
4. Gold does not like being forced to work in an area where a person is not knowledgeable.
5. Gold eludes those who invest it in adventurous or ill-conceived projects, embodying romantic dreams of wealth.

The author of the book tells a couple more stories, the moral of each of which can be fit in one sentence:

Little caution is better than big disappointment.

And in conclusion: "If you have determination, you will always achieve the goal."

Author: Igor Boltovnin