The Richest Man in Babylon – Ancient Wealth Building Principles

Introduction

This article provides a summary of “The Richest Man in Babylon” by George S. Clason, a timeless classic that offers invaluable financial wisdom. This summary highlights key lessons from each chapter (Note that chapter 11 is a historical sketch of Babylon). The book covers topics such as the five laws of gold, lending wisely, the importance of hard work, the laws that govern the building of wealth and more.

The Richest Man in Babylon is a set of parables from George Clason to explain the basics of money. The complete book is slightly less than 200 pages; hence it is a quick read. I consider this book as the very basics of financial literacy. We’ll dive into more elaborate financial concepts as we go through each chapter.

Enjoy the read.

Chapter 1: The Man Who Desired Gold

The main protagonists in this chapter are:

• • Bansir, the chariot builder of Babylon

• • Kobbi, the musician

• • Arkad, the richest man in Babylon

This chapter is about two friends, Bansir (The Chariot builder) and Kobbi (The musician) who lament on how they’ve worked for so long (years) and still have empty purses. They realise that if nothing is changed, their generations might follow suit. You don’t just work hard and expect the gods of luck to bless you, you have to be intentional about being wealthy.

A highlight of the chapter is when Kobbi catches Bansir daydreaming (hence not working), and asks him to lend him 2 shackles, as it makes no sense for someone who is broke to not work. Bansir obviously declines. They contemplate, and their only apparent solution to become wealthy is by asking those who were already wealthy to guide them. They then decide to go to their rich friend Arkad and decide to also bring some struggling friend with them.

I like Bansir’s dream, so I’ve included it below:

Bansir’s dream

“It began with a dream, a senseless dream, one in which I thought I was a man of means. From my belt hung a handsome purse, heavy with coins. There were shackles which I cast with careless freedom to the beggars, there were pieces of silver for which I did buy finery for my wife and whatever I did desire for myself. There were pieces of gold that made me feel assured of the future and unafraid to spend the silver. A glorious feeling of contentment was within me. You would not have known me for thy hard-working friend, nor wouldst have known my wife, so free of wrinkles was her face and shining with happiness, she was again the smiling maiden of our early married days.”

My main takeaways from the chapter are as follows:

• • Working only does not necessarily guarantee you to be rich.

• • You don’t just work hard and expect the gods of luck to bless you. You have to be intentional about being wealthy.

• • Find a person that is wealthy and go ask them how it’s done. If you can’t in this day and age, there are numerous online resources (books and courses) that can bring you in the mind of such wealthy people. A simple example is this YouTube channel, where the YouTuber (Noah Kagan) questions rich people on how they make money, start somewhere and move on from there.

Chapter 2: The Richest Man in Babylon

The main protagonists in this chapter are:

• • Arkad, the richest man in Babylon

• • Babylonians (Arkad’s friends)

At one point in time the richest man in Babylon was called Arkad. He was liberal with his expenses, but each year his wealth increased. But how did he do that exactly? Some of his friends lamented their misfortunes compared to Arkad’s as below:

“You Arkad are more fortunate than we, you have become the most fortunate in Babylon while we struggle for existence, you can wear the finest garments and you can enjoy the rarest foods while we must be content if we can cloth our families in raiment that is presentable and feed them as best as we can. Yet once we were equal, we studied under the same master, we played in the same games, and in neither the studies nor the games did you outshine us. And in the years since, you have been no more an honorable citizen than we, nor have you worked harder or more faithfully as far as we can judge. Why then should a fickle faith single you out to enjoy all the good things of life, and ignore us who are equally deserving?”

Arkad has a brilliant response. He says they are in their current financial position because of one of 2 reasons:

• • You have either failed to learn the laws that govern the building of wealth

• • Or you do not observe them

Fickle faith is actually an enemy if you don’t observe the 2 points above. If you are blessed with a large purse, without applying the laws that govern the building of wealth you either spend excessively to fulfill your unlimited needs, or you are too scared to spend because you know you can’t replace it.
The important questions is how did Arkad get to this stage?
Arkad’s friends then asked him to explain how he got to that stage. In his youth he looked around all the good things that can bring happiness and contentment, and he realized that wealth increases the potency of all these. Wealth is power. He did not want to be envious and satisfied with the minimum. He wanted to be a guest at this table and also enjoy all the good things in life.
Arkad was the son of a humble merchant, in a large family, and not spectacularly bright.
He figured out that to achieve his goal, he needed 2 things, time and studying (that’s what we do at TGM, we study).

• • We all have time (learn how to prioritize aggressively).

• • Learning is of 2 kinds, the first is what we learn and know, the second is the training that teaches us how to find out what we don’t know.

I’ll add a third point to that, the application of what you have studied. You need that to become experienced in building wealth. Like anything else, if you do not apply what you have studied adequately, you’ll have poor results.

Arkad was a scribe. He studied under a wealthy money lender called Algamesh.
A line I love from Algamesh to Arkad is as follows: “When youth comes to age for advice, he receives the wisdom of years, but too often does youth think that age only knows the wisdom of days that are gone and therefore profits not. But remember this, the Sun that shines today is the same that shone when thy dad was born and that will still be shining after thy last grandson passes to the darkness”

• • What does this mean to you?

Algamesh had numerous great one liners, but the one with the core message was the one below:

• • “I found the road to wealth when I decided that a part of all I earn will be mine to keep, and so will you”. Algamesh, The Money Lender

Think about your monthly expenditures, rent, food, leisure etc. You pay to everyone but yourself. This is the foundation of this book, keeping a percentage of what you earn for yourself.
Let’s now have a look at the three key lessons Algamesh taught Arkad to become wealthy (The laws that govern building wealth).

1. 1. Live less than what you earn.

• • “If you keep for yourself 1/10th of what you earn for 10 years, how much will you have Algamesh asked, and Arkad responded 1 year’s worth. But Algamesh clarified that each coin saved can be made a slave to work and make more coins and those coins in turn can be made to work and earn more, and the chain continues.”

• • “A part of what you earn is yours to keep, it cannot be less than a tenth, but can be as much as you can afford.”

2. Make gold work for you.

• • “For you to be wealthy, what you save must earn and it’s children must earn.” Algamesh, The Money Lender

• • Algamesh left and returned a year later, to check if Arkad put the learnings in practice. Arkad had saved, but made a catastrophic mistake, giving the money to a brickmaker to buy jewels from the city he was exploring.

Note that when saving becomes a habit, even if an investment fails, you can still come back on top.

3. Seek advice from those who are competent through their own experiences to give it.

• • “Every fool must learn, why trust the knowledge of a brickmaker about jewels?” – Algamesh to Arkad

• • “Advice is one thing that is freely given away but watch that you take only what is worth having. He who takes advice about his savings from one who is inexperienced in such matters shall pay with his savings for proving the falsity of their opinions.”

First get you an army of Golden slaves, and then many a rich banquet may you enjoy without regret” Algamesh to Arkad.

My main takeaways from the chapter are as follows:
Two reasons for being in a financially stressed position according to Arkad:
1. You have failed to learn the laws that govern the building of wealth
or
2. You do not observe them

You require the following to grow your wealth:

• • Time

• • Studying

• • Application of what you studied

Three lessons from Algamesh on how to make money:

1. 1. Live upon less than you can earn.

1. 1. Seek advice from those who are competent through their own experiences to give it.

1. 1. Make gold work for you.

Additional gems spread throughout the chapter.

• • Wealth grows wherever man exerts energy.

• • Impress yourself with the idea that 1/10th of what you earn is yours to keep.

• • “Invest your treasure with greatest caution that it be not lost. Usurious rates of return are deceitful sirens that sing but to lure the unwary upon the rocks of loss and remorse.”

• • Council with wise man.

• • Ensure your family earns little bits regularly after your death, to avoid unnecessary battles.

• • You need to be ready for opportunity at all times.

• • Men of broad wisdom are always ready to freely share that wisdom.

Chapter 3: Seven Cures for a Lean Purse

The main protagonists in this chapter are:

• • The King of Babylon

• • Arkad, the richest man in Babylon

• • Babylon teachers

In this chapter, the king of Babylon is made aware by one of his council members that most of those in Babylon are poor since the big infrastructural developments concluded in the city. Only a few have most of the riches in Babylon. To ensure Babylon becomes the richest place in the world, the king believed its people should be the richest. He then asks for the richest man in Babylon (Arkad) to teach 100 teachers on the ways to make money.
The lessons begin, and Arkad indicates that for them to be able to teach the lessons he will teach them, they have to put them in practice first and build their own wealth, otherwise it won’t work.
How can you make your community, family, entourage rich? you must all learn and teach yourselves the ways to make money and apply those concepts. Arkad’s lessons are around the seven cures to a lean purse.

Cure 1: Start thy purse to fattening

To build a fortune, start with the coins you are already earning.
For every 10 coins thy placeth within thy purse, take out for use but 9.
When using 9/10th of his earning, Arkad indicates he managed to go along just as well.
I’ve been following this simple rule for years now, and I suspect there is a certain threshold of earning over which you’d be just fine with 9/10th of your income. Test this out for a couple of months. You’ll realize you do just fine.

Cure 2: Control thy expenditures

This is more about wants vs needs. Arkad argues that whatever we consider necessary expenses continually grows proportionally to our income unless we protest the contrary.
Necessary expenses are not desires, desires are typically more than what we earn. All men are burdened with more desires than they can gratify. His solution is some form of budgeting.
Write down all your desires and select those that are necessary and possible by spending 9/10th of what you earn. Cross out the rest and consider them part of the desires you cannot currently gratify.
Keep working with your budget and make it assist you.

Cure 3: Make thy gold multiply

How do we put our treasure to labour? Gold in our purses might be satisfying to the eye but earns nothing. A man’s wealth is not in his purse, but rather in the continuous inflow of coins constantly entering his purse.
One of Arkad’s successful investments was lending money to a shield maker, receive profit from the shield maker’s payback and lend that profit back, making the coins’ children work. That’s simply investing and reinvesting your dividends.
You want income that comes in whether you work or travel. Have numerous sources of coin slaves.
Arkad also briefly touches on compound interest and how it can multiply one’s capital if left untouched for long enough.

Cure 4: Guard thy treasure from loss

It is important to secure small amounts comfortably before securing larger sums. Once you get a lot of coins, you will be tempted by numerous appealing deals that promise to rapidly multiply your capital many times over. Be wary of such, study in depth what you want to put your money in before separating yourself from in it, unless you want to gift someone else your hard-earned coins.

• • Study those you loan your money to, do they have a habit of repaying? Are they knowledgeable and experienced in the field they are talking about? You can’t be entrusting a brickmaker to buy jewels for example.

• • Consult with wise men (those experienced in handling money for profit). Such advice is typically free for the taking.

• • Invest only where thy principle is safe, where it can be reclaimed if desirable and where thy will not fail to collect a fair rental.

Cure 5: Make of thy dwelling a profitable investment

If out of the 9/10th of your income you can invest into a profitable scheme without detriment to your life, then so much faster will your income grow (well obviously).
No man’s family can full enjoy life unless they have a part of ground where children can play in the clean earth and where the wife may raise not only blossoms but also rich herbs to feed her family.
The advice here is not as financial as I would have expected. The idea behind this cure is as follows:

• • If you own your home, you have more determination to work for more as your family lives in a comfortable place.

• • Your monthly repayment to the money loaner gradually decreases your debt till you fully own your home within some years (you own the property which typically becomes more valuable in time), as opposed to renting, which just gives out money with nothing long term in return.

• • It reduces your cost of living, making available more of your earnings for the pleasures and the gratification of his desires.

Cure 6: Ensure a future income (Provide in advance for the needs of thy growing age and the protection of thy family)

This is not really financial advice in the sense of making more, it is more about ensuring your hard-earned coins serve you and your family later. The reasons to ensure a future income are:

• • To ensure you have something in the future when you are too old to work.

• • To leave income for you family to survive if you die early.

You can ensure a future income by:

• • Buying land or properties.

• • Loaning your money out (typically savings accounts).

Cure 7: Increase thy ability to earn

What actions do you take to increase thy capacity to earn?
You need a strong desire to earn more. A tangible desire, like earning 5 pieces of gold. Once you earn that, you can find similar ways to earn 10 pieces, then 20 pieces, then eventually, you will become wealthy.

• • What actions can you take to make an extra $1000 per month? Go do some research and apply what you’ve learned.

Some additional miscellaneous points I found relevant from the chapter:

• • Wealth is accumulated in small sums then larger sums as a man learns and becomes more capable.

• • Desires must be simple and definite. They defeat the purpose if they are too many, too complex, or above the current understanding of the person.

• • More interest in your work, more concentration in your task, more persistence in your effort and you will be more skilled and be able to earn more than others. Be the best at your profession.

• • Cultivate your own powers, study, and become wiser, become more skillful, act as to respect yourself.

I think the main idea here is to have clear and simple financial goals, and to then improve yourself as much as possible to be better at your tasks, complete those initial goals and set higher goals.
My main takeaways from the chapter are as follows:

The seven cures to a lean purse.
Cure 1: Start thy purse to fattening.
Cure 2: Control thy expenditures.
Cure 3: Make thy gold multiply.
Cure 4: Guard thy treasure from loss.
Cure 5: Make of thy dwelling a profitable investment.
Cure 6: Ensure a future income.
Cure 7: Increase thy ability to earn.

Chapter 4: Meet the Goddess of Goodluck

The main protagonists in this chapter are:

• • Arkad, the richest man in Babylon

• • Babylonians

“If a man be lucky, there is no foretelling the possible extent of his good fortune. Pitch him into the Euphrates and like as not he will swim out with a pearl in his hand.” – Babylonian Proverb

In this chapter, Babylonians question themselves on if there is a way to attract good luck. The Centre of learning is where this was discussed. In this temple, teachers will educate others on matters of popular interest, and anyone keen on the subject would attend the discussion session.

I am quite a fan of this Centre of learning concept

Within the walls of this temple, all men met as equals from slaves to nobles. Arkad used to frequent this temple. He had his dedicated room in which groups of men of varying ages attended to discuss. The topic chosen to discuss on one of the nights was around how to attract good luck.Is it found when joining gambling games? (Gaming tables, races, whereby few coins are placed in the hope of winning way more) Is luck a reward to those in need?

They explored multiple areas in which they struggled to get the graces of the Goddess of luck, from the gaming table, to races, to finding lost wallets. Then they moved into luck in their own professional fields. They investigated situations in which they had good luck within their grasps, which eventually escaped. Ultimately, they come to understanding that “luck” is obtained only once we grab opportunity.

When opportunity stands in front of you, do not delay. Opportunity waits for no man. Today it’s here tomorrow it’s gone. Good luck favours those who accept to take the opportunity. Procrastination is the kryptonite of “good luck”. Pushing things that can be done now to later is not helpful as you pass on amazing opportunities. A habit of needless delaying when prompt and decisive action is required (procrastination) will always make one miss on good opportunities

Men of action are favoured by the Goddess of Good Luck.

My main takeaways from the chapter are as follows:
Everybody can have their reservations about good luck, but in this chapter, what is strongly pointed out is that one must be decisive and grab onto opportunity as soon as they present themselves. That’s the only way one can get “lucky”. A habit of needless delaying when prompt and decisive action is required will always make one miss on good opportunities.

Chapter 5: The Five Laws of Gold

The main protagonists in this chapter are:

• • Kalabab, the educator

• • Nomasier, the richest man in Babylon’s son

• • Babylonians

“A bag heavy with gold or a clay tablet carved with words of wisdom; if thy had that choice, which would thy choose?” Yeah you, which would thy choose?

Gold is reserved to those who know its laws and abide by them. Otherwise, the gold will just be wasted.

Kalabab speaks about the story of Arkad, the richest man in Babylon. Kalabab heard this story from Nomasier, Arkad’s son. Arkad wanted Nomasier to inherit his estate, but Nomasier had to first prove he could handle such abundance. Arkad wanted Nomasier to acquire gold and make himself respected amongst men. Arkad gave him a bag of gold and a clay tablet with the 5 laws of gold for him to start his journey. He was to return after 10 years to give account of his expedition. If worthy, he would be heir, otherwise the fortune would go to the priests as charity.

After the 10 years passed, Nomasier gave an account of what had happened throughout:

• • Nomasier talks on his mistakes and what he learnt from them.

• • After losing all his gold, he then went back to the clay tablet with the five laws of gold (Typical ego trip, we think we know much, then we realize we don’t and we need to learn, I think that’s the reason Arkad gave him the coins in the first place, for him to misuse them rapidly and seek ways to understand the handling of gold better)

The five laws of gold from Arkad are as follows:

Law 1: ” Gold cometh gladly and in increasing quantity to any man who would put by not less than 1/10th of his earnings to create an estate for his future and that of his family.”
Save at least 1/10^th of your earnings.

Law 2: “Gold laboureth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.”
Adequately invest your savings to ensure they work for you and produce more.

Law 3: “Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.”
Seek advice from wise men on how to invest your savings.

Law 4: “Gold slippeth away from the man who invests it in businesses/purposes with which he is not familiar, or which are not approved by those skilled in its keep.”
Do not invest in ventures you don’t understand.

Law 5: “Gold flees the man who enforced it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperienced and romantic desires in investment.”
Do not invest in flashy schemes promising ridiculous returns.

For those who abide by the five laws, gold comes and works as its dutiful slave.
Nomasier paid back 3 bags of gold to his father, one as a return for the bag he gave him at the start of his journey, and the other 2 for the clay tablet to indicate to Arkad how he believed the wisdom is more valuable than gold.

If you were to give account of your handling of gold right now to your parent/financial mentor etc., how would you fare?

Those who have gold are those who know the rules of gold and abide by them. To earn wealth requires wisdom and persistency.

My main takeaways from the chapter are as follows:

There is a lesson of ego and humility in that Nomasier thought he did not need the clay tablets, because he had not realized yet he did not know that he was a novice at handling money. Once he squanders his money, he then humbles himself, learns the five laws of gold provided by Arkad, and applies them. There are mistakes made along the way, but eventually he gets there.
“There is no chain of disaster that will not come to an end.

Chapter 6: The Gold Lender of Babylon

The main protagonists in this chapter are:

• • Rodan, the spear maker of Babylon

• • Mathon, the lender of gold

This chapter mainly touches on borrowing and lending money. The main takeaway from this chapter is to ask advice from those who are successful in what you are trying to do. In this case, Rodan who had just amassed a significant amount of gold (through hard work) asks advice from Mathon on whether to lend it to his sister’s husband or not.

His sister’s husband wants to become a merchant and repay Rodan with his potential profits. Mathon’s advice is quite potent. Borrowing is more than the passage of gold from the hands of one to the hands of another. Some burdens are equally passed on during the transaction.

He recounts a story to clarify his point that roughly goes as follows:
It’s about an ox and an ass. The Ox’s task is to plough the field, and the ass is tasked with transporting the farmer whenever needed. The Ox complains about the difficulty of its tasks, and the kind ass suggests he should play ill for the former to let it rest. But the field still needed to be ploughed, hence the Ox’s burden was transferred to the ass, and the ass was made to plough the field for that day. The ass was highly displeased and eventually found a way to convince the Ox to get it’s work back (by threatening the Ox would be sent to the butcher if it were useless). The ass acted as a friend and ended up carrying the Ox’s burden.

A few pieces of advice from Mathon to Rodan are as follows:

• • If you desire to help thy friend, do so in a way that will not bring thy friend’s burden upon thyself.

• • If borrowers borrow to make more money they typically repay, but if it’s for their own indiscretions, be weary of them.

• • If you want to lend, lend wisely and in multiple places.

• • Any person trying to borrow should equally provide a clear plan on how they’ll proceed with that money and eventually pay back.

• • “Better a little caution than a great regret”

My main takeaway from the chapter are as follows:
If you want to lend money, follow Mathon’s advice to Rodan.

Chapter 7: The Walls of Babylon

The main protagonist in this chapter is:

• • Old Banzar, grim warrior of another day.

This chapter depicts how resistant the walls of Babylon were, how they were never broken over a hundred years and resisted a 5-week attack from enemies (when their full force was not present as they were in the East with the King). This chapter juxtaposes the protection of Babylon to that of your savings. Your savings should be protected regardless of how much attacks might be around them (borrowers, fluctuating market, shiny investments etc.).

“The walls of Babylon were an outstanding example of man’s need and desire for protection. This desire is inherent in the human race. It is just as strong today as it ever was, but we have developed broader and better plans to accomplish the same purpose. In this day, behind the impregnable walls of insurance, savings accounts, and dependable investments, we can guard ourselves against the unexpected tragedies that may enter any door and seat themselves before any fireside.”
We cannot afford to be without adequate protection.

My main takeaway from the chapter is as follows:
Protect your income behind the impregnable walls of insurance, savings accounts and dependable investments.

Chapter 8: The Camel Trader of Babylon

The main protagonists in this chapter are:

• • Tarkad, the son of Azure

• • Dabasir, the camel trader

This chapter touches on two important concepts:

• • Spending more than you can earn and the eventual consequences of such actions.

• • The power of determination.

Dabasir’s life encompasses both of those important concepts, while Tarkad’s life is still stuck on the first concept. Tarkad repeatedly fails to repay Dabasir and blames it on ill-fortune (victim mentality). Dabasir then decides to give him some advice.
“Ill fortune pursues everyman who thinks more of borrowing than of repaying.”

Dabasir touches on various parts of his life, and the paragraph below is one I think can resonate with some of us. It’s tempting to want to spend as much as you want, but it comes at a price if you don’t have the adequate income.

“Being young and without experience I did not know that he who spends more than he earns is sowing the winds of needless self-indulgence from which he is sure to reap the whirlwinds of trouble and humiliation. So, I indulged my whims for fine raiment and bought luxuries for my good wife and our home, beyond our means.”

Due to his lack of financial discipline, Dabasir was made a slave, as he could not repay his debts. How many of us would be made slaves because of our financial indiscipline if we lived in Dabasir’s era?

He eventually managed to escape his slave master (and headed back to conquer his enemy, his debts) with the help of his slave master’s wife (not sure if any boundaries were crossed here). On a more serious note, his slave master’s wife spoke some interesting words to him that gave him the required determination to make his escape through the arid terrain that laid ahead of him.

“How can you call yourself a free man when your weakness has brought you to this? If a man has in himself the soul of a slave, will he not become one no matter what his birth, even as water seeks its level? If a man has within him the soul of a free man, will he not become respected and honored in his own city in spite of his misfortune?”

I like those words. If you believe you are unfortunate, cursed etc. even if you have the best of situations happening to you, won’t you approach it with the wrong mentality?

“The soul of a free man looks at life as a series of problems to be solved and solves them, while the soul of a slave whines, What can I do who am but a slave?”
“Where the determination is, the way can be found.”

My main takeaway from the chapter are as follows:
One must build the discipline to only spend less than he can earn and equally have the determination to persevere when the going gets tough.

Chapter 9: The Clay Tablets from Babylon

The main protagonists in this chapter are:

• • Random archaeologist

• • Dabasir, the camel trader

• • Mathon, the gold lender

This chapter is a sequel to Chapter 8. It presents five clay tablets from Dabasir on which he describes how he repaid his debtors and became rich. I will focus on the main points in this summary.

Tablet One:
Mathon set out a plan for Dabasir to follow to lead him out of debt into means and self-respect. The plan included three purposes (2 in Tablet One and 1 in Tablet Two):

1. Provide for thy future prosperity.

One tenth of all Dabasir earns shall be set aside as his own to keep. Mathon spoke the following words “The man who has naught in his purse is unkind to his family and is disloyal to his king, for his own heart is bitter”.
My takeaway, always have more than you need in store, unless you only live for yourself, then disregard this point.

2. Support and clothe his good wife who hath returned to him with loyalty from the house of her father.

Mathon indicated that to take care of a faithful wife putteth self-respect into the heart of a man and addeth strength and determination to his purposes.
Hence, seven-tenths of all Dabasir earned shall be used to provide a home, clothes to wear and food to eat, with a bit extra to spend, that their lives be not lacking in pleasure and enjoyment.

Tablet Two:

3. Pay thy debts

Two tenths of all Dabasir earned was divided honorably and fairly among those who have trusted him and to whom he was indebted.
In summary, the three purposes of Mathon’s plan are as follows:

• • 1/10th of your earnings should be saved or invested.

• • 7/10th of your earnings should be used to take care of yourself and your loved ones.

• • 2/10th of your earnings should be divided honorably and fairly for the repayment of your debts.

Tablets Three, Four and Five touch on how Dabasir followed the plan diligently and eventually paid back his debt.

You might ask yourself what to do with the 2/10th of your earnings once you have cleared your debts. You can split it halfway between savings and expenditures if you need more to spend, or put the whole of it towards savings and investments, which will be more fruitful in the future.

According to Dabasir, if you follow the plan brought up in this chapter, you are sure to be rich amongst men.

My main takeaway from the chapter are as follows:
The three purposes of Mathon’s plan.

Chapter 10: The Luckiest Man in Babylon

The main protagonists in this chapter are:

• • Sharru Nada, The merchant Prince of Babylon.

• • Hadan Gula, Grandson of Arad Gula

Sharru Nada recounts how he and Hadan Gula’s grandfather, Arad Gula made a fortune. The purpose is to help Hadan Gula (who inherited Arad Gula’s fortune with his dad) who was frivolous and believed work was only for slaves realize how Arad Gula actually made his money, and hopefully finds a way to make money himself.

My main takeaways from the chapter are as follows:

• • Hard work and dedication are required to build riches, as well as grabbing opportunities as they come your way.

• • There is also a component of luck presented in this chapter when Arad Gula pays the fee to make Sharru Nada a free man, but I won’t touch on it as I think it was just added to the book to strengthen the friendship of the two gentlemen.

• • Sometimes hard work alone is not enough.

Chapter 11: A Historical Sketch of Babylon

This chapter touches on how advanced Babylon was as a city, they had a language, financiers, engineers etc. They built great worlds. It is recorded from archaeological dating of an eclipse from Babylonian ruins that the city was at least 8000 years old. The city was developed entirely due to the ingenuity of human being, as its only two assets were water (surroundings) and a fertile soil. Babylon fell in an unusual way, their army was defeated and they one who defeated them ran the place into ruin.

• • “Babylon is an outstanding example of man’s ability to achieve great objectives, using whatever means are at his disposal.”

• • “The Babylonians were clever financiers and traders. So far as we know, they were the original inventors of money as a means of exchange, of promissory notes and written titles to property.”

Conclusion

This complete summary condenses the key ideas from The Richest Man in Babylon. Some key concepts you should have a good understanding of after reading this are as follows:

• • The laws that govern the building of wealth

• • Seven cures to a lean purse

• • The five laws of gold

• • Advice on what to look out for before borrowing money

• • Building discipline to spend less than you earn

• • Protect your income with sound investments

• • Hard work is required to build riches

I hope you have gained some practical financial insights from this summary.