Learning From Literature

The Richest Man in Babylon by George Clason

Cover of The Richest Man In Babylon by George Clason

The Richest Man In Babylon by George Clason is a personal finance book published in 1926.

Most of the world’s millionaires and billionaires are self-made—not necessarily smarter, but better at applying fundamental principles of money. Wealth builds when you learn these rules and use them consistently. For example, investing just $3 a day from age 20, with a 10% return, can grow to over $1 million by retirement.

The Richest Man in Babylon is a parable set over 4,000 years ago in the prosperous city of Babylon. It tells the story of Arkad, a poor scribe who rose to great wealth by following timeless financial principles—lessons still relevant today.

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Table of Contents

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The Man Who Desired Gold
  • Learn
    • Study how others acquire wealth and follow their example
    • Seek out those with knowledge; asking for advice costs nothing
  • Create Passive Income
    • Aim for income that flows regardless of your location or activity
    • True wealth isn’t what’s in your “purse” 
  • Make an Effort
    • Success comes from focused, determined effort
    • Lack of wealth often stems from simply never seeking it
The Richest Man In Babylon 
  • Actively Observe, Learn, and Do
    • Seek advice from those who deal with money daily
    • Learn from others’ mistakes to avoid your own
    • Wealth is about learning and applying proven principles
  • Use Your Time Wisely
    • All men have time in equal measure
    • Many let years pass without using that time to build wealth
  • Save Consistently
    • Wealth begins when you decide: “A part of all I earn is mine to keep”
  • Make Money Work for You (Invest)
    • Every coin you save becomes a worker
    • The money it earns becomes more workers
    • Wealth grows like a tree – from a single, early seed
    • The sooner you plant, the sooner it grows
Seven Cures For A Lean Purse 
  • 1st Cure — Start Thy Purse to Fattening
    • Save at least 10% of all you earn
    • You’ll adjust your lifestyle without even noticing the reduction
    • Choose between fleeting pleasures or financial freedom
  • 2nd Cure — Control Thy Expenditures
    • Avoid spending everything you earn
    • Analyze your spending habits – desires are often disguised as necessities
    • Use a budget to prioritize what truly matters
  • 3rd Cure — Make Thy Gold Multiply
    • Money should work for you, not just sit idle
    • Invest your savings so they generate more income
    • Reinvest returns to build a growing source of passive income
  • 4th Cure — Guard Thy Treasures from Loss
    • Be cautious with investments – protect your principal
    • Avoid “get rich quick” schemes
  • 5th Cure — Make of Thy Dwelling a Profitable Investment
    • Where possible, own your home instead of renting
    • Use part of your living expenses to build equity
  • 6th Cure — Ensure a Future Income
    • Plan now for retirement and your family’s future
    • Even small, consistent savings can secure long-term protection
  • 7th Cure — Increase Thy Ability to Earn
    • Invest in yourself: improve your skills, knowledge, and character
    • The more valuable you become, the more you can earn
The Five Laws Of Gold
  • Law 1: Save Consistently
    • “Gold comes gladly to those who save at least 10% of their earnings”
    • Build wealth by regularly setting aside money for your future
  • Law 2: Invest Wisely
    • “Gold works hard for its owner when put to profitable use”
    • Make your savings earn more through smart, productive investments
  • Law 3: Protect Your Capital
    • “Gold stays with those who invest with wise counsel”
    • Seek expert advice before investing – don’t gamble with your savings
  • Law 4: Know What You Invest In
    • “Gold slips away when invested in things you don’t understand”
    • Avoid opportunities outside your knowledge
  • Law 5: Avoid Greedy or Risky Schemes
    • “Gold flees from unrealistic expectations and shady schemes”
    • Be wary of promises of high returns with little risk
The Gold Lender 
  • Help But Don’t Enable
    • If you desire to help, do so in a way that will not bring their burdens upon yourself
  • Be Patient
    • Ambitious youth take shortcuts to wealth for materialism’s sake
    • Better a little caution than a great regret
The Walls Of Babylon
  • We cannot afford to be without adequate protection 
The Camel Trader 
  • Strengthen Your Mindset
    • If a man has in himself the soul of a slave will he not become one no matter what his birth, even as water seeks its level?
    • Perspectives shape our reality
The Clay Tablets
  • Make A Plan
    • “1/10 have I set aside to keep as my own, 7/10 have I divided with my good wife to pay for our living, 2/10 have I divided among my creditors”
    • A solid plan is the key to financial success
  • Stick To The Plan
The Luckiest Man 
  • Work Hard
    • A strong, lasting foundation requires effort—even if the task seems difficult
    • Perseverance through challenges is key to long-term success
  • Find Joy in Positive Things
    • Life offers many pleasures – work is not just a duty but a source of fulfillment
    • Find joy in your work, as it can be your greatest pleasure, not a burden

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