Author: George S. Clason
The main theme of the book: THE RICHEST MAN IN BABYLON
Not only wealth creation or creating multiple sources of income through investing. THE RICHEST MAN IN BABYLON also talks about how to protect that wealth and how to spend each part of that wealth for yourself.
Another motive of this book is to tell readers that before investing in any business, you must acquire knowledge about that business and invest in those who are the maestro of their field.
The author talks about various laws, cures and abides by various interesting stories.
The story of this book is dated back to Babylon where the basic principles of finance have actually started. As you start reading this book, you will find that laws and cures that the author is talking about can actually be applied in our day to day life.
This book does have a theme story that revolves around other different stories. But within those stories, you will find life’s hacks that will actually help you with financial success.
About the author: THE RICHEST MAN IN BABYLON
Born on November 7, 1874, in Louisiana, Missouri was an entrepreneur who wanted to become financially successful. At that time he started writing pamphlets using the wisdom and knowledge set by ancient Babylon. He was the one who coined the term “Pay yourself first”.
Book Summary: THE RICHEST MAN IN BABYLON
The story starts with a man named Bansir, who is a chariot builder, was disappointed in being middle class and talked about this to his friend Kobbi the musician. So to seek wisdom and knowledge regarding wealth creation, they both decided with a few other friends to visit one of their childhood friends and the richest man in Babylon Arkad.
Arkad a son of a humble merchant whose dream is to become rich started his career as a scribe in a hall of record. One day Algamish- money lender came and ordered a copy of nine laws and said he must finish this copy in two days. But after working hard Arkad couldn’t finish his work. To this Algamish got angry. But Arkad said to Algamish teach him how to create wealth and he will finish all by morning.
On the next morning before dawn, he finished his work and as Algamish had promised he taught him first rules: “save not less than one-tenth of your earning for yourself”. So did Arkad promised to do as Algamish said.
After twelve months when Algamish returned he asked Arkad did he save one-tenth of his earning to himself. To this Arkad said yes and he gave this money to Azmur a brick maker to buy jewels ay a low rate. So they can earn more money by selling those jewels at a high price. Algamish smiled and taught him second rule:“invest money only in those who know their business fully”.And as Algamish has described that Arkad and Azmur got fooled by jewels merchant because a brick maker does not know anything about jewels.
Again after twelve months when Algamish return he asked Arkad his saving and investing. To this Arkad said he invested in shield makers business to buy bronze and he is paying him every month handsomely. Algamish asked what you do with this money. Arkad said he spend this money in buying luxury.
Algamish laughed and said if you use children of you saving then how can they have more children that will also work for you. The third rule of Algamish to Arkad is: “build an army of golden slaves”. Invest your money again and again until you reach your goal.
After two years Algamish came back to Arkad he was old and asked him to look after his land in Nippur and Arkad became his partner. To this Arkad’s friend said that you were indeed fortunate that Algamish made you his partner. Arkad said he was willing to do everything he can to became successful.
“Wealth grows where men exert energy,” Arkad said. And advised his friends to follow the wisdom of Algamish. They all thanked Arkad and went away. Some were laughing; some of them don’t have imagined but those who were seriously listening and acted later achieved their goals.
Conclusion: THE RICHEST MAN IN BABYLON
In order to attain wealth, one has to follow the basic Four rules:
- Save not less than one-tenth of your earnings for yourself.
- Invest money only in those who know their business fully.
- Build an army of golden slaves.
- Wealth grows where men exert energy.