Library / Money & Investing / The Richest Man in Babylon
17 key learnings from George Clason's classic parables, set in ancient Babylon, on the seven cures for a lean purse and the five laws of gold. Each takes about 40 seconds to read. Swipe, use the arrows, or your keyboard.
All 17 learnings · one per slide
George S. Clason, in bytes
17 key learnings from George Clason's ancient-Babylon parables on saving, investing and wealth.
Learning 1 · The Man Who Desired Gold
The story
Bansir, a chariot builder, has worked hard all his life yet has nothing saved. He and his friend Kobbi go to ask their old friend Arkad how he became rich.
The lesson
Hard work and skill aren't enough without knowing the laws of money.
Takeaway
Learn how money works.
Learning 2 · The Richest Man in Babylon
The story
Arkad learned from the moneylender Algamish that he should keep at least a tenth of all he earned.
The lesson
Before paying anyone else, pay yourself.
Try this
Move a tenth of your next pay into savings before spending.
Learning 3 · Seven Cures for a Lean Purse
The cure
For every ten coins you put in your purse, spend only nine.
Example
Arkad's students found they didn't miss the tenth coin.
Takeaway
Saving 10% is easier than it sounds.
Learning 4 · Seven Cures for a Lean Purse
The cure
What we call 'necessary expenses' grow to match income unless we control them.
Example
Budgeting so you can afford what truly matters.
Takeaway
Desires are endless; budgets aren't.
Learning 5 · Seven Cures for a Lean Purse
The cure
Put your savings to work so they earn more money, which earns more again.
Example
Arkad lent money to a shield maker and reinvested the returns.
Takeaway
Savings should become workers.
Learning 6 · Seven Cures for a Lean Purse
The cure
Invest only where your principal is safe and you can reclaim it.
Example
Arkad lost an early year's savings by trusting a brickmaker to buy jewels abroad.
Takeaway
Protect capital first.
Learning 7 · Seven Cures for a Lean Purse
The cure
Own your home: it lowers costs and brings pride.
Example
Paying the landlord to own rather than rent forever.
Worth noting
Modern housing markets vary; weigh costs carefully.
Learning 8 · Seven Cures for a Lean Purse
The cure
Provide for old age and protect your family if you're gone.
Example
Setting aside savings that grow for later years.
Takeaway
Plan for the years when you can't work.
Learning 9 · Seven Cures for a Lean Purse
The cure
Keep learning and improving your skills so you earn more.
Example
A scribe who studies to work faster and better.
Takeaway
Invest in yourself.
Learning 10 · The Five Laws of Gold
The law
Gold comes gladly to those who save at least a tenth of their earnings for the future.
Example
Kalabab tells the five laws to a caravan around a campfire.
Takeaway
Saving is the foundation.
Learning 11 · The Five Laws of Gold
The law
Gold labours diligently for an owner who finds it profitable employment.
Example
Money invested in a good business grows.
Takeaway
Idle money doesn't grow.
Learning 12 · The Five Laws of Gold
The law
Gold clings to an owner who invests it on the advice of wise people.
Example
Seeking counsel from experienced lenders, not enthusiasts.
Takeaway
Ask experts before investing.
Learning 13 · The Five Laws of Gold
The law
Gold slips away from those who invest in things they don't understand.
Example
Nomasir lost his father's gold on schemes he knew nothing about.
Takeaway
Stay within your knowledge.
Learning 14 · The Five Laws of Gold
The law
Gold flees those who chase impossible earnings or trust tricksters.
Example
Promises of quick riches that end in loss.
Takeaway
If it sounds too good, it probably is.
Learning 15 · The Clay Tablets from Babylon
The story
Dabasir, a camel trader who fell into debt and slavery, recovers by committing to repay creditors gradually.
The lesson
He divides income: a tenth to save, two tenths to debt, the rest to live on.
Try this
Make a repayment plan and tell your creditors.
Learning 16 · The Luckiest Man in Babylon
The story
Sharru Nada, a merchant, tells how as a slave he learned that hard work, embraced willingly, is a friend.
The lesson
Work opened doors to freedom and success.
Takeaway
Effort creates luck.
Learning 17 · Meet the Goddess of Good Luck
The story
Arkad's class discusses luck, concluding it favours those who act on opportunity.
Example
Missed chances come from procrastination.
Takeaway
Opportunity rewards the prompt.
All 17 learnings complete
A part of all you earn is yours to keep. How much of this month's income will you keep?
Summaries are written in my own words for learning. The book, first published as pamphlets in the 1920s, is a collection of parables. More Books in Bytes
