The Richest Man in Babylon
George S. Clason
“Ancient secrets for modern financial success.”
The Richest Man in Babylon
George S. Clason · 1926
George Samuel Clason was an American author and businessman born in 1874. He founded the Clason Map Company of Denver, Colorado, and published the first road atlas of the United States and Canada. In 1926, he began writing a series of famous pamphlets about thrift and financial success, using parables set in ancient Babylon. These were distributed in large quantities by banks and insurance companies. Their immense popularity led to them being collected into the book we know today. Clason's goal was to provide timeless financial advice in a simple, engaging, and unforgettable way for the common person, a mission he powerfully achieved.
The book’s most foundational lesson is powerfully simple: A part of all you earn is yours to keep. This is the first and most crucial step toward building wealth. The story of Arkad, who became Babylon's richest man, illustrates this perfectly. As a young, poor scribe, he learned from the wealthy moneylender Algamish that the secret to a full purse was to save a portion of all earnings. For every ten coins he earned, he disciplined himself to keep one. This simple habit of saving at least one-tenth of his income, before paying any other bills, was the seed from which his vast fortune grew. It is not about the amount, but the consistent act of setting aside your share first.
Once you have started saving, the next step is to put that money to work. Your savings should not sit idle; they must become your loyal workers, earning you more money. Arkad explains this as making your gold your 'slaves' that must multiply. However, he also shares a cautionary tale from his own life about his first investment. He gave his hard-earned savings to Azmur, a brickmaker, who was traveling to buy rare jewels. Azmur knew nothing about jewels and was tricked, losing all of Arkad's money. The lesson is crucial: invest only where you have knowledge or with the guidance of those who are experts in that field. Make your money work, but do it wisely.
Protecting your capital is just as important as growing it. The book stresses the need to guard your principal against risky ventures and to seek wise counsel. This is shown in the story of Rodan, a spear-maker who received a large sum of gold. He was immediately tempted to lend it to his brother-in-law for a speculative business idea. Unsure, he sought Arkad’s advice. Arkad taught him to be cautious and to never risk his principal on ventures where it could be lost. The core message is to be wary of get-rich-quick schemes that sound too good to be true and to always consult with people who have a proven track record of handling money wisely.
The wisdom of Babylon offers a clear path to financial freedom. Begin today by putting these principles into action. Start saving at least ten percent of every dollar you earn. Learn to live on the remaining ninety percent by controlling your expenditures. Put your savings to work in wise investments, guided by experts. Protect your capital from loss by avoiding unrealistic schemes. Strive to own your own home. Plan for a future income to provide for your retirement and your family. Finally, continuously increase your ability to earn by improving your skills and knowledge. Action is the key that will turn the gold of your dreams into a reality in your purse.