Summary of Richest Man in Babylon

Guide to be Rich – Richest Man in Babylon

The Richest Man in Babylon offers sound financial advice that you may use today through stories and parables from ancient Babylonia. it is one of my favorites to manage finances or to be rich. In this post we will see book summary of Richest Man in Babylon. For more book summaries, refer to this page. you can purchase this book on Amazon

About the Author

Summary

This book is read by millions of People and more than 2 Million copies sold till 2019 referenced by wikipedia. In this article i will provide you Richest Man in Babylon Book Summary. so lets start.
These stories are told by a fictional character called Arkad, a poor scribe who becomes the richest man in Babylon. We will show here only main points of this book. by following these points anyone can be rich. The original 1926 book groups the parables into general advice, and particularly “The Seven Cures” and “Five Laws of Gold”.

The Seven Cures of Lean Purse:

1. Start the purse to fattening
2. Control the expenditures
3. Make the gold multiply
4. Guard the treasures from loss
5. Make of the dwelling a profitable investment
6. Insure the future income
7. Increase the ability to earn

1. Start the purse to fattening:

At this point, the author suggests that everyone save 10% of their monthly income if they want to be wealthy. This is the first step towards curing your lean purse. As per the book,

For every ten coins thou placest within thy purse take out for use but nine. Thy purse will start to fatten at once, and its increasing weight will feel good in thy hand and bring satisfaction to thy soul.

Richest Man in Babylon

Interpretation for Modren age

you must save 10% of your invome. if 10% is not possible in current circumstances then start earning more. there are a lot of ways to earn in modren era by learning some skills. take 90 days to learn a new skill and 90 days to practice it and then start extra earning from that skill. once you have increased earning then start saving. second way of saving 10% is by controlling your expenses. this is discussed in next point.

2. Control the expenditures:

Author says in order to save 10% one should control the expenses. It is “what each of us calls ‘necessary expenses’ will always grow to equal our incomes unless we protest contrary”. To control the expenses, write down each thing for which you want to spend. Select those are necessary and others that are possible through the 90% of income. Cross out the rest and consider them the sacrifice for biggest desires. By this way everyone can save 90%

Interpretation for Modren age

This is same interpretion as you have to control you expenses in order to save. you can not buy 4$ coffee everyday. instead you can make coffe by yourself and save 3$ everyday. this is how it works. you have to track you expenses very carefully and make the list. and eliminate all the expenses that are not necessary like buying a watch. or new branded shoes. you can purchase from local market and save the extra money.

3. Make Gold Multiply:

“This, then is the third cure of lean purse: to put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse”
Arkad advises to invest and to compound the investment return from these savings: “The earnings it will make shall build our fortunes … Learn to make your treasure work for you. Make it your slave.
Make its children and its children’s children work for you.

Interpretation for Modren age

this point is all about investment. invest in property, Business with someoen is a very good option. you can invest in mutual funds. there are a lot of investment options in now a days. if you are Pakistani; i ahve written a post specially for Pakistanis for halal investments. Halal investments in pakistan can also implemented everywhere in the world.

4. Guard the treasure from loss:

“Guard thy treasure from loss by investing only where thy principle is safe, where it may be reclaimed if desirable and where thou will not fail to collect fair rental. Consult with wise men, Secure the advice of those experienced in the profitable handling of Gold. Let their wisdom protect the treasure from unsafe investments.”
Arkad advices to compound the investments of this savings but take advice from wise men. Don’t give your money to cloth trader to trade for jewels it will give you loss. So, invest wisely.

Interpretation for Modren age

You have to tdo the risk calculations for all of your investment. check the risk profle for each investment. partner with experianced and honest men for investment. Don’t put your money wioth unsucesfull business. or stocks. this is the most important advice to keep money safe. if you are unsure of stocks, invest in Islamic money market funds, they have low risk and good returns.

5. Make of the dwelling a profitable investment

Arkad advises buying versus renting your principal residence, and to use your residence to establish a business: “I recommend that every man own the roof that sheltered him and his”, and, “Nor is it beyond the ability of any well-intentioned man to own his home”.

Interpretation for Modren age

make your home. i perssonally don’t agree with this point however having a permanent home with you will give you mental relax as you dont have to pay rent every month. This is the debate for another day that whether to purchase home or not.

6. Insure the future income:

“It behooves a man to make preparation for suitable income in the days to come, when he is no longer young, and to make preparations for his family should be no longer with the to comfort and support them.”
Arkad advises to have a future income or pension plan that can serve you when you are retired, he says “no man can afford not to ensure a treasure for his old age and protection of his family, no matter how prosperous his business and his investments may be”

Interpretation for Modren age

Make somekind of retirement fund. that gives you benifit when you are old. Purchase any retirement policy or you can invest by yourself for retirement.

7. Increase the ability to earn:

“Thus, the seventh and last remedy for lean purse is to cultivate thy own powers, to study and become wiser, to become more skillful, to so act as respect thyself”
Arkad gives last advise to learn till the end. To be more skillful every day and increase your wisdom and ability to earn.
After seven cures arkad told the secret about good luck in chapter “MEET THE GODESS OF GOODLUCK”. He says “in order to attract Goodluck to oneself, it is necessary to take the advantage of opportunity. Men of action are favored by goddess of Goodluck”
In order to be Goodluck you have to be the man of action.

Interpretation for Modren age

Make extra streams of income. if passive they will benifit you more in a longer run.

Five Laws of Gold:

1. Gold cometh 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. Money or Gold labored diligently and contentedly for the wise owner who finds for its profitable employment, multiplying even as the flocks of the field.
3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
4. Money or Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
5. Riches flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment

Arkad Secet Advice

Afterwards Arkad gives a secret of becoming rich for anyone. He tells story of himself that once he was very poor and had very high debt. And he was always running away for the lenders. but one day one lender caught him and he told him a secret, he says he should face his lenders and talk to them and tell them that he will return their loans in this timeframe. And after this advice he started to work, he saved 20% every month, 10% he returns loans and 10% he saved and invested. In 3 years of time, he has returned all of his loans and he was having a wealth in investment. And afterwards compounding effect take care of his money and now he is the richest man in Babylon.

Frequently Asked Questions

Before you buy this book, let’s see some famous questions about this book. Please note that a summary can never be equal to the actual book. This post will give you some insights and hopefully inspire you to read the book personally. Here are some famous Questions

Who was the richest man in Babylon?

As per this book Arkad (a fictional charector) He was scribe at start but afterwards he was the rischest man in Bablon. and he gives financial advices in whole book. “Seven Cures for lean purse”

what is the richest man in babylon about?

This book offers financial advice through a compilation of stories set in ancient Babylon 4,000 years ago. Even after a century, it is recognized as the classic of personal finance. This book outlines the steps to become wealthy.

Conclusion

Richest Man in babylon book summary gives a good advice to how to manage your finances and how to keep money buildup. this book is so famous that another book is written by name “The Richest man in Bablylon: a 52 brilliant ideas interpretation by Karen McCreadie” if we summurize the book below will be the main points

1. Save 10% every month
2. Control your expenses
3. Invest your savings
4. Invest wisely and with professionals
5. Make your house as a good investment
6. Save for old age
7. Increase your income

and 5 Laws of Gold as

1. Money comes to that person who saves at least 10% every month
2. Riches stays with person who invest it and make it to work
3. Gold or Money stays with person who invest wisely, and with experieanced people in trade
4. Money slips with the person who invest with non-experianced people or invest without learning.
5. Rices slips with the greedy person who tries to double or triple money in short time. Money making is long time game

i hope you liked the summary of richest man in Babylon Book. Please give your comments in order to make blog more beneficial.