“The Richest Man in Babylon Summary”

 Genre: Non-Fiction

Key concepts
Save at least 10% of all that you earn for an investment fund for the future. Control your expenses and invest your accumulated capital into projects that will provide a safe, steady income, taking full advantage of compound interest. Invest only in areas in which you have the expertise or with people who had an experience. Buy the house in which you don’t waste any money on rent. Ensure a future income. Always keep updated with new skills which will increase your income.


   Summary
·        Bansir, the chariot builder, and Kobbi, the musician of Babylon are the two best friends who were thoroughly discouraged and struggled with the empty purse which they couldn’t find an answer.

·        They were both decided to visit their childhood friend Arkad, the richest man in Babylon with their other friends, and got some milestone ideas from Arkad.

·        The world is a mixture of grandeur and squalor, of blazing wealth and direst poverty, crowded together. I think most of us were searching for ideas, and here it is let's learn together.


1) “Start thy Purse Fattening”

Pay yourself First

Ø There are a lot of things where we spend our income but we didn’t pay for ourselves.

Ø Clason's suggests that we need to pay ourselves at least 10% of all that we earn. From this, we can generate some sort of wealth for the investment.


2)   “Control thy Expenditure”

Ø This suggests we don’t be confused with our basic expenses with unnecessary desire.

Ø Wealth is like a tree that grows from a tiny seed. The sooner we plant that seed, the faithfully we nourish it, the sooner it may bask in contentment beneath its shade.


3)  “Make thy gold Multiply”

Make the money work for you

Ø A man's wealth is not in the purse he carries.  If there be no golden stream to refill it, a fat purse quickly empties.

Ø Learn to make your treasure work for you. Make it your slave. Make its children and its grand children's work for you.


4) “Ensure to protect your treasure”

Ø Perceive the advice from that person who was an expert in that field. Don’t take advice on medicine from the brick maker. Go to the people who were experts in particular subjects. Consult with wise men.

Ø The first sound principle of investment is the security of your principal. Study carefully, before investing the treasure, each assurance that it may be safely reclaimed.


5)  “Make your dwelling a profitable investment”

Ø Own your own home. Once the house had built, then don’t need to pay the money to the landlord.


6)   “Ensure a future income”

Ø We should plan certain investments or provisions that may endure safely for many years.

Ø Provide an advance for the needs of your growing age and the protection of your family.


7)  Increase the ability to earn

Ø The more you are interested in your work, the more concentration upon your task, more persistence in your effort, and, with reasonable promptness, your increased skill has rewarded.

Ø Cultivate your powers, to study and become wiser, to become more skillful.


 Five laws of gold

A)    Gold comes gladly and increasing quantity to any man who will put not less than one-tenth of his earnings to create a state for his future and that of his family.

B)    Gold labor diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.

C)    Gold clings to the protection of the cautious owner who invests it under the advice of men wise in its handling. 

D)   Gold slipped away from those people who invest it in businesses with which he is not familiar or which are not approved by those skilled in its keep. 

E)     Gold flees from the man who would force it to impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts it to his inexperience and romantic desires in investment.


·        Fortunate are those who were prepared for opportunities. Good luck fled from procrastination and action will lead you forward to success.

·        Little caution is always better than a great regret.


·        On this day, behind the impregnable walls of insurance, savings accounts, and dependable investments, we can guard ourselves against the unexpected tragedies that may enter any door and seat themselves before any fireside. We cannot afford to be without protection.


·        If you are in debt live on seven-tenths (70%) of what you earn, save one-tenths (10%) for yourself, and the remaining two-tenths (20%) to repay your debt.


·     Lots of ways can be found if you are determined to reach the desire destination.



About author

·        George Samuel Clason studied at Nebraska University and served in the United States Army during the Spanish-American war.

·        In 1926, he issued the first of a famous series of pamphlets on financial success, using parables set in ancient Babylon to make each of his points. These "Babylonian parables" have become a contemporary inspirational classic.

·        These were distributed in significant quantities by banks and insurance companies and became familiar to millions, the most famous being "The Richest Man in Babylon".



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