The Richest Man in Babylon

In the late 1920s, writer and entrepreneur George S. Clason created a series of simple parables about the supposed financial “secrets of the ancients.” Clason calls these lessons the “wisdom of the ages” and the “fixed stars that shine.” His common sense advice about wealth can make you rich in more than money. Over the years the book has sold over two million copies.

Here is a summary of first two chapters:

Bansir, the Chariot Maker

In the ancient days, a skilled craftsman named Bansir built chariots for the high and mighty. He was a hard worker, but after years of work, he became discouraged and distraught, because he had not saved even a single coin. Then he and his friends sought Babylon’s richest man, Arkad, to ask how he became wealthy.

Arkad the Wealthy

Arkad is the Richest Man in Babylon. He explained that they could not improve their finances if they did not understand and apply the laws of growing wealth. Arkad told the men about Algamish, an elderly moneylender, who taught him the secrets of wealth when he was young.

First, Algamish said, Arkad must always keep part of his earnings. When Arkad said that he kept everything he earned, Algamish explained that no, he did not: he paid for things he needed, like food and clothing, but he did not save anything for himself. Arkad nodded. It was true. He had no savings. Algamish told him that saved money would work for him and earn even more money, the “children” of the saved funds. When the savings, their children, and their children’s children were working for him, Arkad would be rich. Algamish told Arkad that if he could do that, and control his expenses, he would soon prosper.

Arkad took the moneylender’s advice. He began to save, but for his first investment he gave his savings to Azmur, a brick maker, who promised to invest the money in beautiful jewels the two of them could sell. But wily Phoenicians posing as jewel merchants tricked Azmur, selling him worthless glass trinkets instead of jewels. Algamish then warned Arkad to invest only with experts – that is, if he wanted to buy jewels, he should go to a jewel merchant, not a man who made bricks. When it comes to money, he said, always seek knowledgeable advice.

Arkad started saving again. When he had put aside a notable sum, he invested it with Aggar, a maker of shields, who used it to buy bronze. Then he made and sold bronze shields, and gave Arkad a portion of the profits. Soon, Arkad was becoming wealthy. When Algamish asked if he was following the rules of wealth, Arkad could answer that he was and that he was getting rich. Algamish clapped him heartily on the back. Praising his intelligence, Algamish asked Arkad to become his partner, oversee his lands and inherit his estate. Arkad thanked the old man for his generosity. He worked for Algamish for many years and was his heir when he died. By that time, Arkad had become wealthy through his own efforts.

To summarize, Arkad's advise to the men are:

1. Save at least one-tenth of what you earn.
2. Seek advice from experts on how to make your money grow.
3. Invest your savings wisely so that they earn for you and so their earnings do the same.
4. Live within your means. Do not spend money foolishly.
5. Pursue opportunity promptly – that is the real meaning of good luck.

As an employee who works 10-12 hours a day, I can understand Bansir very well. This book inspired me to save and invest my money wisely. I used to spend carelessly and take investment advise from "gurus" but eventually ended losing my money. Now I'm hoping to follow Arkad's footsteps and grow my wealth.