Library: The richest man in Babylon

The Richest Man in Babylon is a book by George Samuel Clason which dispenses timeless financial advice through a collection of parables set in ancient Babylon. Through their experiences in business and managing household finance, the characters in the parables learn simple lessons in financial wisdom.

Targets – Mindset, budgeting

1.Pay yourself first

“For each 10 coins I put in, to spend but 9.”

  • If you have not acquired more than a bare existence in the years since we were youths, it is because you either have failed to learn the laws that govern the building of wealth, or else you do not observe them.
  • A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford.

2. Live below your means

“Budget your expenses so that you may have money to pay for your necessities, to pay for your enjoyments and to gratify your worthwhile desires without spending more than nine-tenths of your earnings.”

  • If you eat the children of your savings, how do you expect them to work for you?
  • ‘Necessary expenses’ will always grow to equal our income, unless we protest the contrary. Confuse not the necessary expenses with desires, for each of us, together with our families, have more desires than our earnings can justify.
  • Let your motto be 100% of appreciated value demanded for each coin spent.
  • The purpose of a budget is to help to fatten your purse. It enables you to realize your most cherished desires by defending them from casual wishes, which are endless and pointless. Control your expenditures for definite and gratifying purposes. (Stop impulsive buying)

3. Make money work for you

” …put each coin to work so that it may reproduce its kind even as the flocks of the field and help bring to you more income, a stream of wealth that will flow constantly into your purse.”

  • A man’s wealth is not in the coins he carries in his purse, but in the income he builds, the golden stream that continually flows into his purse to always keep it full.
  • Opinions are easily given, even those that are unqualified and unsought. Only seek them from those you want to become.

4. Protect your wealth

“Guard they treasures from loss by investing only where thy principal is safe, where it may be reclaimed if desirable, and where thou will not fail to collect a fair rental. Consult with witse men. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments.”

  • Money is your treasure. Would you entrust your treasures, to a bricklayer to buy gems from overseas? Choose to put your treasures to work wisely, protectively.
  • Before lending money, assure yourself of his ability to repay and his reputation for doing so, lest not you unwittingly give him a present of your hard-earned treasure.
  • Be not misled by your own romantic desires to make wealth rapidly.
  • Many uses will them say to you. Much advice will be spoken to you. Numerous opportunities to make large profits will be offered to you. Before you let any piece of gold leave your pouch, be sure that you have a safe way to pull it back again.

5. Your home is your biggest expense

“Own thy own home”

  •  It is an expense and a very high expense at that and one we must manage carefully.

6. Insure a future income

“Provide in advance for the needs of thy growing age and the protection of thy family.”

  • The life of every man proceeds from his childhood to his old age.
  • Insurance against death, where a small payment made regularly produces a profitable result, is a treasure where no man can afford not to do so, for his old age and protection of his family, no matter how prosperous his business and his investments may be.
  • In this day, behind the impregnable walls of insurance, saving accounts and dependable investments, we can guard ourselves against the unexpected tragedies that may enter any door and seat themselves before any fireside.

7. Invest in yourself

“Cultivate thy own powers, to study and become wiser, to become more skilful, to so act as to respect thyself.”

  • Those eager to grasp opportunities for their betterment, do attract the interest of the goddess of fortune. She is ever anxious to help those who please her. And who is she pleased with? She is pleased with those who do – rather than those who merely talk and engage in wishful thinking. Action will lead you forth to the successes you desire.


Remember the 5 laws of gold

1. Gold comes gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family

2. Gold labours diligently and contentedly for the wiser owner who finds fir it profitable employment, multiplying even as the flocks of the field

3. Gold clings to the protection of the cautious owner who invests it under the advice of men wise in its handling

4. Gold slips away from the man who invests it in business or purposes with which he is not familiar or which are not approved by those skilled in its keep

5. Gold flees the man who would force it to impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment


About the author: Simple Investor SG