Money · 1926
The Richest Man in Babylon
by George S. Clason
Timeless parables of ancient Babylon that teach the simple laws of getting rich.
8 min read
The big picture
Told through short parables set in ancient Babylon, the book follows ordinary people who learn how to save, invest and grow wealth from the richest man in the city. Its lessons are simple and old, and they still work: spend less than you earn, make your money earn more, and protect what you build.
Five key ideas
- 1
Start thy purse to fattening
Keep at least one tenth of everything you earn. Pay it to yourself first, before any other expense.
- 2
Control thy expenditures
Wants expand to fill any income. Separate real needs from desires and live within what remains after saving.
- 3
Make thy gold multiply
Saved money should be put to work. Every coin invested becomes a worker that earns more coins for you.
- 4
Guard thy treasures from loss
Seek advice from people with proven experience, and avoid schemes that promise huge returns with no risk.
- 5
Increase thy ability to earn
The more you know about your craft, the more you can earn. Keep learning and improving your skills.
Put it into practice
- Automate a transfer of 10% of every income into savings the day you are paid.
- Write a monthly budget that separates necessities from wants.
- Pick one skill that would raise your income and study it weekly.
Who should read it
Beginners who want money basics told as short, memorable stories.
How to apply it in daily life
Morning
Move one tenth of what you earn to savings first.
During the day
Keep spending inside a simple daily budget.
Evening
Learn from someone who already handles money well.
Next summary
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