Book Summary and Review: The Richest Man in Babylon

Mr. Clason's style of writing does take a little getting used to at first. It is written in the perspective of a shield maker in Ancient Babylon named Bansir. The story starts with Bansir discussing how to get gold (their currency) with his good musician friend Kobbi. Bansir complains of having to toil every day to earn his money and then it is all soon spent and he has to go back to work to earn more. He has dreams of his purse full of gold coins that replenish themselves without him slaving at his task each day. Bansir thinks of his old friend, Arkad, who has become the richest man in all of Babylon. So rich, in fact, that Bansir thinks out loud that if he were to meet him in a dark alley, that might steal his wallet and the gold inside. Kobbi rebukes him with an important lesson, "Nonsense, a man's wealth is not in the purse he carries. A fat purse quickly empties if there be no golden stream to refill it. Arkad has an income that constantly keeps his purse full, no matter how liberally he spends." Bansir decides that he will bring a group of men who work an honest living but no riches to seek the counsel of Arkad to learn how they can also attain these income streams.

Doesn't this sound like many of us? We go to our jobs day after day to earn money, but after we pay our bills, there is not much money left, so back to work to continue earning income. Don't we all wish for other streams of income that do not require us to put time and effort into, passive income streams!

Chapter 2 - The Richest Man in Babylon

Bansir gathers a group of friends and visits with Arkad asking how he has been able accumulate such wealth. They had all shared the same teachers and played the same games as children and yet none of these other men had been able to do so. Arkad explains that these riches are there for every man to enjoy. The difference is that he learned the laws that govern the building of wealth while Bansir and his friends did not. This was something that Arkad learned from the moneylender, Algamish. Arkad tells the others of his years of learning from Algamish and how he was able to accumulate great wealth. He shares with them the 7 rules of gaining wealth. Some of the men question and doubt that it could be this easy to gain wealth.

Herein lies one of the most difficult things for many people to do; ask others for help. If you know someone else that is successful in an area you are not, ask them how they were able to achieve that success. The answer may be easy, or it may be difficult, but realize that it will probably take work on your part. If it didn't, everyone would do it. This is one thing that I have really taken to heart. I've spoken to a couple of good friends that I consider much more successful in accumulating money than I have. They have been great in teaching me the principles that they have used to grow their wealth. My path may not rise as rapidly as theirs due to their main source of income being much higher than my teaching salary, but I can apply their principles on a smaller scale.

Chapter 3 - Seven Cures for a Lean Purse

Babylon became the wealthiest city in the world. Babylon conquered its enemies, but the Royal Chancellor explained to King Sargon that the people seemed unable to support themselves. All of the gold in the city had found its way to a handful of men. Not through any treachery or deceit, but because most men didn't know the rules of accumulating gold. The king asked the richest man in the city, Arkad, to hold a class to teach the men of Babylon the ways of gold. Arkad explained to all the men in the class that he started out with very little and was able to accumulate much by following these rules of wealth. 

The First Cure - Start thy purse to fattening

Arkad explained that the first step to building wealth was to keep 1/10th of what you earn for yourself. He instructed them to set aside this money before paying any bills or buying any items. Arkad explained that it might seem simple, but the truth is always simple.

The Second Cure - Control thy expenditures

Arkad explained that men are burdened with more desires than they can satisfy. He showed how some of the men in the class earned more than others but their purses were as lean as those that earned far less. Arkad told them a very true fact of life, "That what each of us calls our 'necessary expenses' will always grow equal to our incomes unless we protest to the contrary." He challenged them to all list the things that they wanted to spend on and only select those that fit into their 9/10s of their income. They were NOT to touch the 1/10th that they were to keep in their purse.

The Third Cure - Make they gold multiply

As class went on, Arkad proceeded to the third cure. By this time, the men had started to "fatten their purses" by saving 1/10th of what they earned and not spending more than 9/10ths of their income. Now it was time to make that gold they had saved start to earn more money. Each of these gold coins was put to use in investments to earn more gold coins. This was done to ensure a stream of wealth coming in without work.

The Fourth Cure - Guard they treasures from loss

Arkad continued with his fourth cure by explaining that a man must learn to protect the small amount of gold in their purses before the Gods will entrust them with more. Men with gold are often tempted by investing in extravagant opportunities that will grow their wealth. Arkad explained that his first investment was foolish as he trusted a brick maker with his savings to buy rare jewels that they would share the profits in. The brick maker knew nothing of jewels and his treasure was lost. Your treasure should only be invested where you have knowledge or have sought the knowledge of those with experience. Protect your treasure from unsafe investments.

The Fifth Cure - Make of thy dwelling a profitable investment

Arkad's fifth cure was to explain to the men that they should own their own homes instead of paying a landlord high rents for a home that is not their own. Owning your home grows your wealth.

The Sixth Cure - Insure a future income

Arkad explained that all men age and that a man should prepare for those days when he will no longer be able to perform the physical work of earning income. A man should secure investments that will provide for his family an income in his older years.

The Seventh Cure - Increase thy ability to earn

Arkad concludes his cures with one of the most vital cures of a lean purse. This lesson is not about gold but about each man themselves. Each man should improve their skills and abilities to increase their income.

This chapter is where the "meat" of this book lies. It is in these "cures" for a lean purse that show us what we need to do to improve our financial situation. All of these cures can apply to our way of earning and spending today. The only cure that some may argue against today might be owning your own home. Some people today believe that renting can be cheaper than owning a home simply because you don't have the unexpected costs of home ownership like a broken furnace or water heater as a renter. This money is then invested into other profitable ventures. Outside of that, I believe that all of these cures, however simple or generic they may seem, can put you on a path to financial success.

Chapter 4 - Meet the Goddess of Good Luck

Arkad completes his class with the men of Babylon and continues to teach his knowledge to the people of Babylon in the Temple of Learning. One day a man comes to him to tell of a very lucky circumstance of finding a purse containing gold. He wishes to continue to be this lucky to find gold and asks Arkad how this can be so. Arkad poses the question of good luck as it applies to the gaming (gambling) tables. Surely this is where most men claim good luck to be found, yet none of the men, including Arkad, could claim to ever having found luck at these places. Arkad claimed that none of the wealthy men of Babylon could credit their success with the gaming tables. Their success came from honorable skills and trades by which they earned their gold. Arkad posed a question of how many had seen good luck within their grasp only to see it escape. Many of the men offered that they had. One man explained that when he was young his father had implored him to enter into an investment of barren land above the city which water could not reach. A friend had devised a plan to build waterwheels that would raise waters to the soil. The man being of young age instead spent his money on beautiful new robes from the East. The venture proved most profitable and the man regretted many years not joining the enterprise allowing good luck to escape him. Arkad explained that "good luck waits to come to that man who accepts opportunity." Another man arose to speak of a disappointing return to the city after a journey in search of camels. The gates of the city were closed and the man was frustrated. An elderly farmer approached the city with a flock of sheep eager to sell and return to his wife who was sick with fever. The buyer eagerly struck a bargain with the old man but they could not count the sheep easily in the dark and the buyer refused to pay. The elderly man was desperate and asked for only two-thirds the price. The buyer was stubborn and would not pay. The next morning the gates opened and four buyers rushed out and purchased the flock at three times the price at which the elderly man had offered the buyer. Thus the buyer had good luck escape him. Arkad explained "Good luck fled from procrastination." Arkad took both of these tales and explained to the rest that "Men of action are favored by the goddess of good luck."

This chapter seems to fit perfectly with what I've seen in the world. We all know people who we believe are "lucky", but do we really notice the action that they took that we were not willing to take? The people I know who seem to have all the "luck" in the world are those who have taken some risks and took action to make their dreams reality. All of us can probably look back at some opportunity that was there for the taking, but for some reason, many times fear, we hesistated and the opportunity was gone. Be a person of action!

Chapter 5 - The Five Laws of Gold

Kalabab tells a story on the laws of gold by posing a question of which you would choose, a bag heavy with gold or a tablet carved with words of wisdom. All of the men of course choose the bag of gold. Arkad says it is true of most men. They ignore the wisdom and take the gold, and in a matter of time the gold is gone and they is no wisdom. "Gold is reserved for those who know it's laws and abide by them." He tells of Arkad, the richest man of Babylon, whom Kalabab knew through his son Nomasir, who had also earned his own riches in the city of Nineveh. Arkad did not believe in the custom of passing your estate to your sons. Arkad explained to Nomasir that he would have to show his father that he was capable of handling his estate and not wasting it. He gave Nomasir a bag of gold and a tablet with the five laws of gold. Nomasir was to leave and return in 10 years to prove that he was worthy of his father's estate. Ten years passed and Nomasir returned to his father. Nomasir explained that he learned a difficult lesson soon after he was leaving his father as he was cheated in a bet on a horse race. His next lesson was when he went into business with a man from Babylon who proved to be a foolish buyer and lost their money. It was at this point that Nomasir read the five laws of gold and put them to heart. The laws were as follows:

The Five Laws of Gold

1. Gold cometh gladly and in increasing quantity 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.

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

3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.

4. 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 skills in its keep.

5. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of trickster and schemers or who trusts it to his own inexperience and romantic desires in investment.

Nomasir then got a job managing a crew of slaves at the city walls. He diligently saved one-tenth of his income and this came to the attention of one of the master. The master made an offer of a business opportunity to Nomasir that could prove profitable. Nomasir jumped at the investment and was able to become of a part of this group of men in their investments. This led to Nomasir increasing his wealth and opportunities and he was able to show his father his ability to manage his father's estate wisely. Thus, Nomasir received his father's estate.

This chapter gives us an the early beginnings of the 7 cures. They started as the 5 rules of gold and progressed into the cures. Nomasir's example is a good one of someone who ignored the rules at first and lost everything and once they learned and respected the rules, they were able to turn their fortunes around.

Chapter 6 - The Gold Lender of Babylon

Rodan was a spear maker of Babylon who had just come into some money. The king had been pleased with his new design for spear tips for the Royal Guard. The king rewarded him with 50 gold pieces, but Rodan had no idea what to do with his newfound wealth. He went to the gold lender not to borrow money, but to ask for his advice on lending his gold. Mathon, the money lender, was quite pleased. Usually, men came to him only when they were in need of money. Nobody had come to him for advice. Rodan's sister's husband had asked Rodan to borrow money to start a business to become a rich merchant. Mathon asked if her husband had any knowledge of items or trade. Rodan said he did not. Mathon gave him strong advice that he should not lend money to anyone that does not appear to have the ability to repay. Rodan fretted as to how he should tell his sister that he would not lend her husband the gold. Mathon asked Rodan how many pieces of gold he had saved during his three years of spear making. Rodan answered three pieces. Mathon said surely his sister would not expect Rodan to give away 50 years of his savings to her husband, which is what the 50 gold pieces represented. Rodan had learned to be cautious with his hard earned gold.

This chapter goes back to the idea of only investing your money into investments that you are familiar with or with people who are knowledgeable in such areas. I have experienced this firsthand. Once I had a couple thousand dollars saved away, I decided I was going to invest in the next up-and-coming business, pot stocks. I took that $2,000 and invested in a Canadian company that seemed to be the one that was going to come out on top. That stock today is worth about $300. A tough first lesson...

Chapter 7 - The Walls of Babylon

Banzar was an old guard of the Walls of Babylon. An army had besieged Babylon and was trying with all their might to get in. Each day, people would stop and ask if the walls of the city would hold. To each, Banzar would tell them that the Walls of Babylon would protect them. Finally after three weeks, the attacking army realized that victory was impossible and retreated from the battlefield. The citizens of Babylon celebrated in the streets rejoicing in their victory.

The lesson from this chapter was to show that we need adequate protection from people that would try to take what is ours. There is nobody in life that will care more about your money than you!

Chapter 8 - The Camel Trader of Babylon

Tarkad was a starving. Food was everywhere, yet he had no gold to purchase any. He came across Dabasir, a friend of his fathers that had loaned him money. Dabasir asked for repayment of the loan, but Tarkad claimed that ill fortune had prevented him from being able to repay. Dabasir rebuked him but told Tarkad to come with him so he could tell Tarkad a tale. Dabasir proceeded to tell a tale of being a young man that saw the world through a different color. As a young man, Dabasir had borrowed much money and could not repay it, so he fled Babylon, but he was captured and taken as a slave some time later. During his time as a slave, he learned the value of hard work and was able to convince the daughter of his master that he was a good man. She believed him and allowed him to flee across the desert. For many days he rode in the direction of Babylon until he was on the brink of dehydration. He realized at this time that he had viewed the world in the wrong color. He vowed from that point on that he would repay every person that he had borrowed money from. With this new determination, he continued on with renewed vigor to change his life. Tarkad learned as Dabasir ordered the inn keeper to bring food for his young friend, that "where there is determination, the way can be found."

Too many times in life, people give up at the first sign of adversity. Living life this way prevents us from living our best life. It's up to us to stay focused and determined to work for what we want in life.

Chapter 9 - The Clay Tablets from Babylon

Alfred Shrewsbury was an archaeologist studying some clay tablets that had been found in Mesopotamia. The tablets spoke of a man named Dabasir who learned the lessons of money accumulation that used these lessons to pay off all his debts and amass a great amount of wealth. Alfred, who had much debt, took these lessons and applied them to his own life. Over a period of time, he was able to repay his debt and accumulate enough wealth to live a comfortable life. The lessons that applied in Ancient Babylon still apply today.

This chapter really stresses the idea of debt being the barrier to growing your wealth. This especially applies today with all of our easy credit that is available to everyone. The majority of Americans today have some form of consumer debt; car loans, lines of credit, credit cards. Ask anybody with this kind of debt, and it can seem insurmountable.

Chapter 10 - The Luckiest Man in Babylon

Sharru Nada was the merchant prince of Babylon who was travelling with the grandson of his long-time business partner, Arad Gula. Sharru felt that he owed a great debt to Arad and wanted to help his grandson, Hadan, but he was disturbed by the young man's attitude toward work. Hadan believed that all manual labor was reserved for slaves, not for someone of his place in life. Sharru decided on a plan to show the young man the value of hard work. Sharru recounted to Hadan his beginnings as a slave who learned that the better a slave worked, the better the master treated them. Sharru worked hard enough that he became friends with another hard-working slave, none other than Hadan's grandfather, Arad. Arad had earned enough money through his hard work that he was able to buy his freedom. Some years later, Arad purchased Sharru and freed him to make him his partner. Hadan was shocked at his grandfather's beginnings and realized that he earned his high status through his hard work.

This chapter shows us that no matter where you start in life, you must respect the value of hard work. Work is what gives life meaning and earns the respect of others.

Mr. Clason's book gives us an outline of how each of us can accumulate wealth. The rules are simple, but they are difficult to follow. Our society has stressed the importance of consumer spending, and we fall into the trap. The key is to take the first step. Try to pay yourself first. That first step could be the first step on a path to financial freedom! And as always...

KEEP STACKIN!