The Richest Man in Babylon by George Samuel Clason is one of the most influential books on wealth and personal finance. Written in 1926, the story is set in the ancient city of Babylon and follows the journey of a poor man as he tries to build his wealth by following the wisdom of the city’s richest man, Arkad.
The story begins with the protagonist, Bansir, lamenting the fact that he is poor. He wanted to be a great man but could not amass any wealth, so he goes to the richest man in Babylon, Arkad, in search of answers. Arkad, who is immensely wealthy, offers his wisdom to Bansir, telling him seven “Cures for a Lean Purse”.
The first “cure” Arkad teaches Bansir is that “A part of all you earn is yours to keep”. Arkad emphasizes the need to pay yourself first each month and not just spend all your money on frivolous expenditures. By setting aside a portion of your income for yourself each month, you can begin to build your wealth.
The second “cure” Arkad teaches Bansir is to “Control thy expenditures.” He encourages Bansir to practice frugality in all his purchases and to exceed incoming revenue with outgoing expenses. Arkad warns against spending more money than your income each month as this will only lead to debt and lack of financial security.
Arkad’s third “cure” is to “Make thy gold multiply.” In other words, Arkad encourages Bansir to save and invest his money, rather than simply keeping it in a savings account. He tells Bansir to find suitable investments, such as stocks and bonds, so that his money can generate additional income to help increase his wealth.
The fourth “cure” Arkad teaches Bansir is to “Guard Thy Treasure from Loss.” Arkad cautions against investing in risky ventures or companies with poor financial prospects, as these can lead to devastating losses. Instead, he advises Bansir to research companies thoroughly before investing and to diversify his investments to limit his risk.
The fifth “cure” is to “Make of thy dwelling a profitable investment.” Arkad encourages Bansir to own his home rather than paying rent to someone else. By building his own home, he can use it as a source of income, renting it out to other people for a profit.
The sixth “cure” Arkad teaches Bansir is to “Insure a future income.” Arkad’s advice is to save and invest enough money so that he can retire comfortably and have an income to support himself and his family. He encourages Bansir to plan for his and his family’s future by investing in a retirement plan or other investments which will generate income in the future.
The seventh and final “cure” Arkad teaches Bansir is to “Increase thy ability to earn.” Arkad encourages Bansir to always be looking for new opportunities to make money such as taking classes to learn additional skills or investing in a business to generate more income.
By following the seven “Cures” Arkad taught him, Bansir is able to grow his wealth and eventually become the latest “Richest Man in Babylon.” The moral of the story is clear: smart financial decisions and discipline are the keys to wealth and prosperity.
The Richest Man in Babylon by George Samuel Clason is a timeless book on wealth and personal finance. Its lessons are as relevant today as they were when it was first written. By following its advice, anyone interested in amassing wealth can take the same path as Bansir, the “Richest Man in Babylon”.
