Book Review- The Richest Man in Babylon

I came across this book after reading Robert Kiyosaki's "Rich Dad Poor Dad" books. Its one of his recommendations for a must read for people who want to be financial free. As with most books in Little Inspirational & Self Helf Books lense, this book is small, in story form and simple to understand. Below is a short review of this book.

The Man Who Desired Gold

The book starts with Bansir, the chariot builder of Babylon, who was thoroughly discouraged, sitting on the fence thinking. He was deep in thought, not caring about the hustle and bustle of the city around him. He was interrupted by the smiling face of his best friend—Kobbi, the musician. Then they discussed how their lives have evolved. How they took the trouble to learn their skills, hoping that if they increased their knowledge, their richest will increase too. But this is not always the case, their skills improve but their richest didn't increase in value. Then they remembered their friend Arkad who was wealthy. They planned to meet up with him and ask what his secret to building wealth is. I too had the same mindset like Bansir and Kobbi, thinking that if I improved my knowledge then my wealth will follow suit but now I have found that this is not the case.

The Richest Man in Babylon

In old Babylon there lived a certain very rich man named Arkad who was famed for his liberality, his generosity to charities and his family. And each year his wealth increased more rapidly than he could spend it. Because of this, his friends came to see him to learn how they can increase their wealth. Arked then told them a story on how he met Algamish, the money lender. Algamish taught him the first step to financial freedom. It is to pay oneself first. What this means is to save a tenth of your salary. I have found that if we set our mind to it we can live on 90% of our income. That's why most Personal Finance books, blogs or guru's say in order to build wealth; we need to have some sort of savings. Reason being when an opportunity comes, you have the resources to invest. This brings us to the next lesson by Algamish, which investing your savings. Algamish suggest that we invest with people who know how to invest. People who are successful in investing.

Seven Cures for a Lean Purse

After defeating the Elamites, King Sargon returned to Babylon to be confronted by another problem. The people of Babylon were no longer able to support themselves. His chancellor reported that the wealth of the people was accumulated by only a few men. This is due to their knowledge on the workings of wealth. The king asked the chancellor to search for such a person, so as he is able to teach the people. The chancellor then selected Arkad, who was then summoned to see the king. To which Arkad agreed to teach a few people so as they can teach others. He taught them the "Seven Cures for A Lean Purse"

THE FIRST CURE

Start thy purse to fattening.

What this means is that we need to save, a minimum of 10% of your income. This is so when the opportunity comes, you have the money to invest.

THE SECOND CURE

Control thy expenditures

The second cure is a continuation of the first. It is to budget yourself so as to spend within 90% of your income. You can save the other 10% as advised in the first cure. Now I am listing down my daily expenditure. I have found that there are expenditures that I really don’t need. As my company provides lunch what’s the use of having lunch outside. Take it from someone who is going to be financially free. List down daily what little things you spend and you will be surprised as where your money goes. I do it on my PDA but if you don’t have a PDA then do what one of Orpah`s guest suggested. Write on a piece of paper and put it in a box or basket. Later you can review what you spend either daily or weekly.

THE THIRD CURE

Make thy gold multiply

After saving your 10%, of your earnings and seeing it grow. But by just keeping savings in a safe place, your wealth will not increase. You need to invest to let it grow. What you should do is look for the right advisors as to what and where to invest.

THE FOURTH CURE

Guard thy treasures from loss

When your money increases, make sure you do investment that is safe. Investment that doesn't have any risk to your principal. Consult with wise men. Secure the advice of those experienced in the profitable handling of gold so as their wisdom can protect your savings from unsafe investment.

THE FIFTH CURE

Make of thy dwelling a profitable investment

To buy property or your own house. This I found to be true. When were growing up, we always stayed in a rented house which we had to shift once the owner needed the house or sold it. So for about three decades we were paying for a house that we didn’t own. So imagine that if we took a loan to purchase a house, after three decades the house would be ours. And after we pass on our children would have a place to stay. We only need to worry about paying property tax. And if we don’t want to stay there, we can rent it out. Let another person pay our loan for us, like what we did when we were young.

THE SIXTH CURE

Insure a future income

The sixth cure for a lean purse is to prepare for the day when we are not able to work. The day when we are old, sick and unable to work. In some countries they have saving program like the 401K and the Employee Providence Fund, that your employee and you contribute a percentage of your income monthly to a saving fund. You can take out your savings when you reach the retirement age. But as what Robert Kiyosaki said with the ever increase in inflation this call may not be enough. So we need to look at other avenues. We also need to plan for the day when leave this world, so as our loved ones are provided for.

THE SEVENTH CURE

Increase thy ability to earn

This is the same thing highlighted by Robert Kiyosaki in the Rich Dad Poor Dad Series. In order to be financial free, we need to have another source of income. What he suggested that works for him was real estate. There is alot of other avenues to make money, choose one that suits you. There is the Multi Level Marketing or what I am trying out now is Internet Marketing. Its hard work but people have succeeded in it, so I intend to be one of them.

Meet the Goddess of Good Luck

In old Babylon, there is an important building called Temple of Learning where people came to discuss on any matter no matter what levels they were. One such person who had his own special hall was Arkad. He came here frequently to discuss to ways to improve them. Tonight they were discussing on how they can attract good luck. What they have found out that betting on the gaming tables doesn't attract the Goddess of Fortune. They continued to discuss on missed opportunity. How opportunity comes in a few seconds only and how they were not grabbed fast enough. So what this means is good luck follows those who grabs opportunity fast.

The Five Laws of Gold

Around a campsite Kalabab tells his slaves the story of Arkad the richest man in Babylon as told him by Nomasir, Arkad's son. He tells the story of Arkad wanting his son to proof to him that he is capable of handling the estate that his father will leave him. How he send Nomasir out with a bag of gold and a clay tablet, asking him to return after 10 years. When Nomasir returns he gives an account of what he did. How he lost the bag of gold to a scam. He then tells the tale how he used what was written on it. On it was written the Five Laws of Gold.

The five laws of gold were

THE FIVE LAWS OF GOLD

1. Gold cometh gladly and in increasing quantity 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.

2. Gold laboureth diligently and contentedly for the wise owner who finds for it 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. Gold slip peth 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. 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.

Then Nomasir goes on to tell how he used the wisdom of the Five Laws of Gold

The Gold Lender of Babylon

This chapter starts with Rodan, the spearmaker walking towards Mathon, the moneylender. He just had received a large sum of money for his work, now he asking Mathon should he lend to his sister's husband to invest and whether it’s a good idea. Then advises him, that he can lend the money if it doesn't burden him. Then Mathon goes on to show Rodan his token chest and explains the contents, so as Rodan understands the importance of lending money to a person who can pay back.

The Walls of Babylon

The story continues with Old Banzar, a grim warrior guarding the passageway leading to the top of the ancient walls of Babylon. The city is under attack but there are only few defenders. Banzar from his vantage point gets first hand news on the fight below. One by one the citizens come to him for reassurance that the wall will hold against the attack. He reassures them not to worry. The walls of Babylon again protected the citizens as the enemies retreated. The moral of this story in life we should also build some protection with insurance, savings to be used for a rainy day.

The Camel Trader of Babylon

Tarkad, the son of Azure was very hungry because he had only eaten only two figs in two days. He was looking for someone who could spare him some food. But he meets the person who he has been avoiding, Dabasir, the camel trader. Dabasir invites him to join him for dinner in a restaurant but only orders water for Tarkad. While he eats his meal in front of starving Tarkad, Dabasir tells of tale how he conquered his enemy- debts.

The Clay Tablets from Babylon 

The story starts Alfred H. Shrewsbury from the Department of Archaeology writing to Professor Franklin Caldwell. He says he has translated the five tablets the Professor sent to him. He says that he found it interesting; it’s about the story of how Dabasir clears his debts. Dabasir writes on the tablet how he lived on 70% of his earnings, saved 10% and he used the last 20% to clear off his debts. So the Professor tries it with his wife. By following the writings of Dabasir, he created a plan as to get out of debt. Which he did. And later the Professor wrote to Shrewsbury that's he is financial free by following Dabasir's plan.

The Luckiest Man in Babylon

In this chapter you will hear how Sharru Nada on a camel caravan journey tells of a tale how he came out of slavery. He was telling Hadan Gula, grandson of Arad Gula how his grandfather also got himself out of slavery. Hadan Gula didn't believe it at first. Then Sharru Nada continued his tale. Relating how Arad Gula brought helped him to get out slavery. He also related what happened to his friends that was sold wih him in the slave market and how he worked hard to save some money. Then only did Hadan Gula believe and promised to follow the success of his grandfather.

An Historical Sketch of Babylon

The last chapter is a historical account on the city of Babylon.

It is hard to believe that this book was first published way back in 1926. Reason being the ideas in this book can still be used in today's world. This is also a great book given as gift to young person.

For more Inspirational Book reviews, please go to my Little Inspirational & Self Helf Books lense