The Richest Man in Babylon - A ZCASEBA Book Review (Chapter 1 - 5)

In today's world, financial literacy is no longer a luxury, it's a necessity. Understanding how to

manage your money empowers you to make informed decisions about your future. The book,

"The Richest Man in Babylon," serves as a timeless guide, offering simple yet powerful

financial principles that can be applied by anyone, regardless of income level. Through engaging

parables set in ancient Babylon, the book equips you with the knowledge and strategies to build

wealth, achieve financial security, and ultimately, become the richest version of yourself.

CHAPTER 1: A HISTORICAL SKETCH OF BABYLON

a) Describe the city of Babylon

• Babylon was the wealthiest city in the world at the time of its height because people really understood the true value of money.

b) What can we learn from the city of Ancient Babylon about being resourceful in creating

Wealth?

• Ancient Babylonians were resourceful wealth creators. They prioritized budgeting, invested wisely, valued education, built strong networks, and adapted to challenges. By embracing these principles, we can learn valuable lessons for our own financial pursuits.

CHAPTER 2: THE MAN WHO DESIRED GOLD

a) Summarize the interaction that Kobbi had with Bansir.

• Kobbi and Bansir were childhood friends struggling financially in Babylon. They shared a common frustration with their lack of wealth despite their hard work. Their shared discontentment led them to seek advice from their wealthy friend, Arkad.???

b) Kobbi is quoted reproving his friend Bansir saying, “A man’s wealth is not in the purse

he carries,” What does this teach us about the correct way to measure wealth?

• Kobbi's quote, "A man's wealth is not in the purse he carries," teaches us that true wealth extends beyond material possessions. It suggests that wealth is measured not solely by monetary value, but also by intangible assets such as knowledge, skills, relationships, and experiences. These intangible assets can contribute significantly to a person's overall well-being and quality of life.

c) What other lessons did you pick up from the reading of this chapter?

• It is important to live below one's means to allow saving for the future.
• Do not try to accumulate wealth through risky means but seek guidance from people who have already achieved financial success.?

CHAPTER 3: THE RICHEST MAN IN BABYLON

a) Describe who Arkad was

• ?Arkad was a very rich man who was well known by many for his wealth and liberality(quality of giving and spending freely)
• Despite being generous in his charities and with his family, and liberal with his expenses, Arkad’s wealth increased more rapidly than he spent it.
• I think it’s safe to say that Arkad was a man who made deliberate decisions when it can to his finances, from the age of his youth, in order to accumulate the wealth that he had.

b) What is the relationship between wealth and happiness?

• There is certainly no relationship but it can be said that wealth has the ability to make one have a level of happiness.

c) What other lessons did you pick up from the reading of this chapter?

• We should not overstrain ourselves in the name of saving. Life is rich and meant to be enjoyed and saving should not take that away from us. Therefore, it is important that a healthy balance be struck between the two.

CHAPTER 4: THE 7 CURES OF A LEAN PURSE

a) What is meant by the ‘7 cures Of A Lean Purse’? Briefly mention them.

The Seven Cures for a Lean Purse

·? ? ? ? 1st Cure: Start thy purse to fattening. This can be done by saving 10 per cent for your earnings and this is described as, “For each ten coins I put in, to spend but nine”

·? ? ? ? 2nd Cure: Control thy expenditures. By understand on how to control your expenses you learn a new skill called “Budgeting”. So, “Budget your expenses that thou may have enough income for necessities, enjoyment and gratification without spending 90 per cent of your earnings”

·? ? ? ? 3rd Cure: Make thy Gold multiply. Putting your treasures to labour so that it makes itself grow as well. The lesson from this, “Invest each coin so that it can grow and multiply, like animals in a field, and help create a steady flow of income that will continuously fill your purse”

·? ? ? ? 4th Cure: Guard thy treasures from loss. Remember that bad luck target those who are successful, prominent, or in the spotlight for there is a saying that “Misfortune likes a shining mark.” And we learn that, “Keep your money safe by investing only in places where your initial investment is secure, where you can get it back if needed, and where you'll earn a fair return. Seek advice from knowledgeable experts to protect yourself from risky investments.”

·? ? ? ? 5th Cure:? Make thy dwelling a profitable investment. By owning your home, you reduce living expenses and can eventually turn your dwelling into a profitable asset. “Let every man own a roof that shelters him and his family.”

·? ? ? ? 6th Cure: Insure a future income. Make preparation for a suitable income in the days to come to make, preparation for his family should he be no longer with them to comfort and support them. “Provide in advance for the needs of the growing age and the protection of your family”

·? ? ? ? 7th Cure: Increase Thy Ability to Earn. Investing in yourself by enhancing your skills and education increases your earning potential. “Cultivate your own powers to study and become wiser to become more skillful to so act as to respect thy self.”

b) How can a man keep one-tenth of all he earns in his purse when all the coins he earns are

not enough for his necessary expenses?

• To save 10% of your income, prioritize savings, track expenses, and negotiate costs. Consider side hustles to increase income. Adjust expectations and cut non-essential expenses to free up funds for savings.

c) Explain the investing concept of compounding.

• This means that interest earned on your initial investment can be reinvested, and over time, this process creates a snowball effect where your wealth grows exponentially.

d) Narrate a time when you lost money in unsafe investment schemes.

e) What other lessons did you pick up from the reading of this chapter?

Here are some of the main takeaways:

1.? Action Attracts Luck : Good luck comes to those who take action. The chapter emphasizes that opportunities often appear as a result of hard work and preparedness. Sitting idly and waiting for luck to strike is less effective than actively pursuing goals.

2. ?Preparation and Opportunity : Luck often favors the prepared. Being ready and equipped to seize opportunities when they arise is crucial. This means continuously improving skills, knowledge, and readiness to act.

3.? Procrastination is the Enemy : Delaying decisions or actions can result in missed opportunities. The chapter highlights the importance of acting decisively and not postponing actions that can lead to success.

4. ?Learning from Experience : Wisdom and experience play a significant role in recognizing and capitalizing on opportunities. Learning from past mistakes and successes helps in making better decisions in the future.

5.? Diligence and Persistence : Consistent effort and persistence are essential for attracting good luck. The chapter underscores that persistent effort, even in the face of challenges, can lead to favorable outcomes.

These lessons collectively emphasize that while luck might seem random, it often aligns with those who are prepared, proactive, and diligent.

CHAPTER 5: MEET THE GODDESS OF GOOD LUCK

a) What relation is there between luck and wealth?

• Luck plays a limited role in achieving wealth. While it can provide opportunities, true wealth is built on factors like discipline, knowledge, and hard work.

b) Using one of the tales in the chapter, illustrate how procrastination wastes opportunity and

prevents the acquiring of wealth.

• The tale of Algamish, the scribe, in Chapter 5 of "The Richest Man in Babylon" vividly illustrates the consequences of procrastination. Algamish, despite his knowledge and skills, found himself perpetually short of money. His downfall was not his lack of earning potential but his inability to save consistently. By continually spending his earnings before they could accumulate, Algamish missed opportunities to grow his wealth. This procrastination in saving, a form of financial delay, ultimately hindered his ability to achieve financial independence. His story serves as a stark warning about the perils of postponing financial goals.

c) What other lessons did you pick up from the reading of this chapter?

• Opportunity waits for no man and good luck comes to those who accept opportunity. And good luck can be enticed by accepting opportunity.

-Collectively Written by ZCASEBA Committee Members