The Richest Man in Babylon

Lesson 1. Introduction.

 “The Richest Man in Babylon,” is about Arkad, once a wealthy man in Babylon. Amused by his success and intrigued to learn about it, his two friends, Bansir and Kobbi, approach him one day. They ask Arkad about the secrets of his success. 

Accepting their request, Arkad starts talking about his journey. He talks about a person named Algamish. Back in the days, Algamish was a wise money lender. He taught Arkad the importance of money. He gave Arkad valuable pieces of advice on how to save and invest.

Over time, by putting his mentor’s advice into action, Arkad started making more money. He was working with financial advisors and investing his income into different sectors. 

Arkad also talks about the differences between luck and hard work. He believes that luck is just a matter of hard work. Once, Arkad is summoned by the king of Babylon to advise the people of the kingdom in financial affairs. In this regard, he presents seven principles that will help people overcome their money issues.

The book also talks about ‘The Five Laws of Gold’. The Five Laws of Gold refers to the valuable advice passed on to Nomasir, from his father Arkad. The advice was composed of five laws. The Five Laws of Gold are  

1. Save 10 percent of your income.
2. Invest wisely.
3. Handle money with caution.
4. Hire financial experts.
5. Avoid tricksters.

Lesson 2. Save 10 percent of your income.

The secret to success lies between what you earn and how you choose to spend it. The author, Clason, abides by the phrase ‘Pay yourself first’. It means that, before paying your bills and debts, it’s important to save some part of your income for yourself. You have to pay yourself first by saving some money.

A minimum saving of 10 percent of one’s income is recommended to stay financially intact. More if you can afford to do so. The author was practical in his thinking when he chose exactly ten percent. It is because ten percent of one’s income is nominal yet useful. 

Saving up that percent doesn’t have any major impacts on the person’s lifestyle. In today’s world, the process of saving money has become easier than ever. Most banks offer the choice of depositing ten percent or more of your paycheck directly into your savings account.  

Saving money works best when you don’t have to decide between saving it or spending it. Most people give in to the urge of spending their