7 Lessons from The Richest Man in Babylon: Build Wealth Like a Millionaire
The Richest Man in Babylon – Summary in 3 Sentences
The book is set in ancient Babylon, and follows the story of Arkad, the richest man in all of Babylon, imparting his wisdom to a younger man, Bansir, who wishes to become wealthy.
It lays out the basics of personal finance – spend less than you earn, save 10% of your income, and invest wisely – in an engaging parable format (stories told to teach a lesson). The book teaches that if you follow these basic lessons, work hard, and continue improving your skills, you can build future wealth through passive streams of income.
7 Lessons from The Richest Man in Babylon
The book is divided into three sections. The first 7 lessons are the “cures for a lean purse” that Arkad (the richest man in Babylon) shares with Bansir, and then there are two other related parables that impart the last two bits of wisdom. This article will cover the overarching lessons in the book.
Here is a summary of the main lessons from The Richest Man in Babylon:
Lesson 1 – Pay Yourself First
This, my students, was the first cure I did discover for my lean purse: For each ten coins I put in, to spend but nine.
Lesson 2 – Live Within Your Means
This, then, is the second cure for a lean purse. Budget thy expenses that thou may have coins to pay for thy necessities, to pay for thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings.
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Lesson 3 – Put Your Money to Work
This, then, is the third cure for a 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 the income, a stream of wealth that shall flow constantly into thy purse.
Lesson 4 – Keep Your Money Safe
Consult with wise men. Secure the advice of those experienced in the profitable handling of gold. Let their wisdom protect thy treasure from unsafe investments.
Lesson 5 – Be a Homeowner
Thus come many blessings to the man who own his own house. And greatly will it reduce his cost of living, making available more of his earnings for pleasures and the gratification of his desires.
Lesson 6 – Insure Your Future Income
This, then, is the sixth cure for a lean purse. Provide in advance for the needs of thy growing age and the protection of thy family.
Lesson 7 – Improve Your Skills to Earn More Income
Thus, the seventh…remedy for a lean purse is to cultivate thy own powers, to study and become wiser, to become more skillful, to so act as to respect thyself.