The Richest Man in Babylon by Georges Clason
Summary
we can summarize core concept behind this book in this few rules, from chapter 3
- Start Saving
- Control your spending
- Make sure you will keep earning on your investment
- Protect your investment from loss
- don’t upgrade your lifestyle when you start earning more
- make sure you have retirement money when you can’t earn
- Increase your ability to earn by learning new skills
Consolidated Notes (Chapters 1–9)
Chapter 1: The Man wo Desired Gold
Chapter 2: The Richest Man in Babylon
Road to Wealth
"Then he looked at me shrewdly from under his shaggy brows and said in a low, forceful tone, ‘I found the road to wealth when I decided that a part of all I earned was mine to keep. And so will you’
"Then he continued to look at me with a glance that I could feel pierce me but said no more. " 'Is that all?' I asked.
" 'That was sufficient to change the heart of a sheep herder into the heart of a money lender,' he replied.
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Lessons to Generate wealth
'"Arkad,' he continued, 'you have learned your lessons well. You first learned to live upon less than you could earn. Next you learned to seek advice from those who were competent through their own experiences to give it. And, lastly, you have learned to make gold work for you
You have taught yourself how to acquire money, how to keep it and how to use it. Therefore, you are competent for a responsible position.' I am becoming an old man. My sons think only of spending and give no thought to earning. My interests are great and I fear too much for me to look after. If you will go to Nippur and look after my lands there, I shall make you my partner and you shall share in my estate.”
Will Power
"Willpower!" retorted Arkad. "What nonsense. Do you think willpower gives a man the strength to lift a burden the camel cannot carry, or to draw a load the oxen cannot budge? Will power is but the unflinching purpose to carry a task you set for yourself to fulfilment. If I set for myself a task, be it ever so trifling, I shall see it through. How else shall I have confidence in myself to do important things? ..."
A PART OF ALL YOU EARN Is YOURS TO KEEP
Chapter 3: Seven Cures for a Lean Purse
"After many years of great prosperity brought to our people because your majesty built the great irrigation canals and the mighty temples of the Gods, now that these works are completed the people seem unable to support themselves.
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The First Cure
Arkad addressed a thoughtful man in the second row. "My good friend, at what craft workest thou?" "I," replied the man, "am a scribe and carve records upon the clay tablets." "Even at such labour did I myself earn my first coppers. Therefore, thou hast the same opportunity to build a fortune."
'For each ten coins I put in, to spend but nine.'
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The Second Cure
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The Third Cure
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The Forth Cure
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The Fifth Cure
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The Sixth Cure
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The Seventh Cure
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Chapter 4: Meet the Goddess of Good luck
"In tilling the soil, in honest trading, in all of man's occupations, there is opportunity to make a profit upon his efforts and his transactions. Perhaps not all the time will he be rewarded because sometimes his judgment may be faulty, and other times the winds and the weather may defeat his efforts. Yet, if he persists, he may usually expect to realize his profit. This is so because the chances of profit are always in his favour.
"Those eager to grasp opportunities for their bet torment, do attract the interest of the good goddess. She is ever anxious to aid those who please her. Men of action please her best. "Action will lead thee forward to the successes thou dost desire.”
Chapter 5: The Five Laws of Gold
- Gold cometh gladly and in increasing quan - tity to any man who will put by not less than one-tenth or his earnings to create an estate for his future and that or his family
- "Any man who will put by one-tenth of his earnings consistently and invest it wisely will surely create a valuable estate that will provide an income for him in the future and further guarantee safety for his family in case the Gods call him to the world of darkness. This law always sayeth that gold cometh gladly to such a man. I can truly certify this in my own life. The more gold I accumulate, the more readily it comes to me and in increased quantities. The gold which I save earns more, even as yours will, and its earnings earn more, and this is the working out of the first law.”
- Gold laboureth diligently and contentedly for the wise owner who finds for it profitable employ - ment, multiplying even as the flocks of the field.
- "Gold, indeed, is a willing worker. It is ever eager to multiply when opportunity presents itself. To every man who hath a store of gold set by, opportunity comes for its most profitable use. As the years pass, it multiplies itself in surprising fashion.”
- old clingeth to the protection of the cau - tious owner who invests it under the advice of men wise in its handling.
- "Gold, indeed, clingeth to the cautious owner, even as it flees the careless owner. The man who seeks the advice of men wise in handling gold soon learneth not to jeopardize his treasure, but to preserve in safety and to enjoy in contentment its consistent increase.”
- Gold slip peth away from the man who in - vests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
- "To the man who hath gold, yet is not skilled in its handling, many uses for it appear most profitable. Too often these are fraught with danger of loss, and if properly analyzed by wise men, show small possibility of profit. Therefore, the inexperienced owner of gold who trusts to his own judgment and invests it in businesses or purposes with which he is not familiar, too often finds his judgment imperfect, and pays with his treasure for his inexperience. Wise, indeed, is he who investeth his treasures under the advice of men skilled in the ways of gold.”
- Gold 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.
- "Fanciful propositions that thrill like adventure tales always come to the new owner of gold. These appear to endow his treasure with magic powers that will enable it to make impossible earnings. Yet heed ye the wise men for verily they know the risks that lurk behind every plan to make great wealth suddenly. "Forget not the rich men of Nineveh who would take no chance of losing their principal or tying it up in unprofitable investments.
Chapter 6: The Gold Lender of Babylon
Chapter 7: The walls of Babylon
Babylon endured century after century because it was fully protected. It could not afford to be otherwise. The walls of Babylon were an outstanding example of man's need and desire for protection. This desire is inherent in the human race. It is just as strong today as it ever was, but we have developed broader and better plans to accomplish the same purpose.