The Richest Man in Babylon

If you’re not in debt:

• Set aside 10% of your income before anything else; and
• Live on the 90% that’s left.

If you are in debt:

• Set aside 10% of your income before anything else;
• Repay your creditors with 20%; and
• Live on the 70% that’s left.

• On to the subject of thrift - when you have extra money, it’s tempting to splurge and buy fancy things. But don’t! Make sure to live within your means and only take on necessary expenses.
• Arkad says: “What we call ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary.”

• Make a list of all your outgoing expenses.
• Think very carefully about what’s strictly necessary and what’s just a luxury.
• Cut back on things you can live without.
• Be very wary of developing expensive habits.

• Now that you have some money set aside, it’s time to put it to work. When you invest your cash, it can reproduce and bring you a steady stream of income and personal wealth!
• Arkad’s philosophy is that “you make your gold have children, who can then also work for you.”
• In our modern world, this might be loaning money out or getting interest from a savings account or stocks or crypto or gold.

1. You should surround yourself with people who want, understand and make lots of money.
2. You should only seek financial advice from the very best experts in the field. Don’t take advice from your family, friends or colleagues.
3. You should stick to the plan. Don’t underestimate the power of compounding. Trust what you know, not what you see. Let time take care of the rest.

• Arkad warns us that there is no way to make massive amounts of money overnight. Instead, it takes time, effort, and knowledge.
• And when you are ready to invest, make sure to start small. You need to learn to secure smaller amounts until you can handle larger ones.
• Arkad praises the ability to reclaim your money when you need it back in a hurry.
• Study before making an investment so you can be sure it is a wise one.
• You won’t get rich overnight… but you will get rich eventually.

• Don’t get into debt.
• Don’t help people in ways that mean you take on their financial burdens.
• Don’t lend money to others without taking some guarantee of repayment.
• Don’t forget to protect your income and assets with diversification and insurance.
• Don’t invest in things you don’t fully understand.
• Don’t get sucked into get rich quick schemes.
• Don’t put your money in investments which don’t pay out dividends (i.e., cash).

• Arkad tells us that “every man should own the roof that sheltereth him and his.” That’s because it can reduce your cost of living and make more money available for your desires.
• Instead of just throwing your money away on rent, you’ll be building equity in an investment. And can pay off big when planning for future income.

• Arkad recommends planning for retirement in advance to ensure your treasures and protect your family. Naturally, having a savings account or retirement pension with a lot of money saved up is great.
• But you can also rent out the properties that you bought earlier in life. Either way, coming up with a plan now should ensure you’ll be comfortable when you’re older.

• Want to earn more? Develop your mindset and your skills! The more wisdom you have, the more you can earn.
• Choose knowledge over gold — a bag of books over bag of money.
• Doing all of these things can help you become a better investor and increase your ability to earn. Whatever you do, start small. Eventually, you can go bigger as you learn and become more capable.

Gold lender Mathon’s advice on lending ,

When lending, only lend to those you trust, who are knowledgeable in their field and have the means to repay. If possible, you should even consider taking some collateral worth the value of the loan. This winning combination of factors ensures you’ll get your money back eventually.

The moral : It’s better to have a little caution than a great regret.

Babylon is under attack, and the citizens are afraid. The guard assures them all the walls will hold, as they are strong and fortified.

Babylon does survive the attack, and Clason uses this to illustrate that we need financial security throughout life. You never know when you’ll be under attack – whether you lose your job or have some emergency medical bills.

The moral : We cannot afford to be without adequate protection.

Dabasir was sold as a slave and was trained as a camel tender. One of his master’s wives, Sira, asks him if he has the soul of a free man or slave. After a while, he realizes he wants to repay his debts, so she helps to free him.

He works so hard to pay off his debts using a precise budget.

But in the end, he makes things right and proves he has the soul of a free man.

The moral : Where the determination is, a way can be found.

Sharru Nada was a slave working for a baker, where he made extra pastries and shared the money with his master. He wanted to work hard so he could buy back his freedom.

Unfortunately, his master gambled all his money, so Sharru was sold again and almost condemned to a hard labor life before his friend purchased him. His friend was able to do this because Sharru taught him about the value of hard work.

The moral : Hard work can be your best friend in times of distress and help you achieve many things.

• A part of all you earn is yours to keep.
• Men of action are favored by the goddess of good luck.
• Better a little caution than a great regret.
• We cannot afford to be without adequate protection.
• Where the determination is, the way can be found.