How To Become Wealthy: A Walkthrough of The Book “The Richest Man In Babylon” by George Samuel Clason

The Richest Man In Babylon is a timeless storybook that directs readers to the path of wealth in a very animated and poetic narration. Published in 1926 by George Samuel Clason, he outlines the simplicity of following straight-forward rules or laws in order for an individual to achieve financial freedom.

What I like most about this book, which I consider a pious relic, is that George didn’t tackle wealth creation nor money like a businessman does—do this, do that, be an alpha male and a get-rich-quick scheme, etc. Rather, through his eloquent approach, he was attentive and cautious with his words, and wrapped the theme with an entire narrative that evokes a story comparable to the likes of that you can find from the Bible. This has been my favorite book about finance, so much so that when Joshua Sheats of The Radical Personal Finance Podcast (my favorite podcast of all time) recorded an audio version of each chapter, I have been continuously listening to them one by one for more than a hundred times now, in a loop—reminding myself that success takes time and that I have to be patient. Another supporting reason as to why I am very fond of this piece is because of its inclusion of all the necessary constituents in relation to amassing wealth, one of which is: the love to labor, or simply put, to work.

This book knocked on my door about six to seven years ago and it didn’t take too long for me to finish it. The magic of this masterpiece is that it will keep you flipping page after page, thanks to the artistic and poetic choice of words that will strike you to the heart. As an example, read the excerpt below:

“… But too often does youth think that age knows only the wisdom days that are gone and therefore profits not. But remember this: The sun that shines today is the sun that shown when thy father was born and will still be shining until thy last grandchild shall past into darkness.”

“The thoughts of youth are bright lights that shine forth like the meteors that off make brilliant the sky, but the wisdom of age is like fixed stars, that shine so unchanged, that the sailor may depend upon them to steer his course.”

What an amazing message, especially with the sailor analogy. His literary creativity exemplifies top-notch writing talent.

Whenever I finish a book, I normally write my name and other contact details with a corresponding date on the bottom right of the first page, which is normally left blank. Once I write my seal, I then try to share it with somebody who is willing to read and learn. Although for this book, I decided to keep it for the value that it holds is like a rosary that each and every Catholic must always carry.

Before we begin dissecting the book, I want to tell everyone that there is no get-rich-quick scheme here. These principles are deeply rooted into the veins of our ancestors and has been the way of the universe. Wealth-building takes time. You may be lucky to strike a jackpot once or twice in your life, but it doesn’t build the necessary habits and mindset that will protect you from loss. Sooner or later, you will find yourself struggling in different ways, for having enormous wealth do take its toll to the mind. A slow, consistent and persistent effort is the best possible way to amass a fortune that will outlive any trend or calamity.

I hope that you understand this. 

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The Book

The plot starts by outlining the lives of laborers in Babylon, the greatest city that was ever erected. Within its great and mighty walls lie the disparity between the wealthy and the surviving—an inter-dependence of greatness and strife that are both necessary to keep the city running accordingly. These curious laborers began to wonder how they can get Luck pay them a visit and unchain them from the handcuffs of poverty. The solution that they were seeking involved consulting with a prominent individual. There lived a man who was revered by many to such high regards, so much so that even the king sought his counsel when it comes to ways of the coin. His name is Arkad.

Arkad

Was once a slave, now considered to be the richest man in Babylon, Arkad was consulted by the curious laborers to seek wisdom on how they can turn the tides in their favor. Even the king got involved in this matter that he, Arkad, called for a forum and welcomed everyone who wanted to learn, to the king’s generous permission. During this gathering, Arkad began to narrate how he was able to buy his own freedom from being a slave and preached lessons that have stood the test of time.

Before we tackle the lessons, allow me to tell you how Arkad perceives the things that surround wealth, according to the book:

Fickle faith brings ruin to people. Wealth building requires dedictation and consistency. Changing your mind out of a sudden just to get a hold of the latest fashion or iPhone to look interesting to people is something that wealth frowns upon. Eyes on the prize and stay in your course. 

Sudden wealth, especially to those who are uneducated with money, is the perfect weapon for a poverty-stricken life.

Wealth increases the potency of all the things that bring happiness to somebody, for wealth is power, and through it, many things are possible.

The moment you decide to claim your own share with the good things in life by understanding the laws of wealth, then you transform to the person who you want to be.

Do not be satisfied by medicriority for it doesn’t breed a wealthy life.

Time and study are required to amass wealth. Allow time to build your habits. Consult with people who know the ways of the coin.

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The Governing Laws of Amassing Wealth

For your convenience, here are the lessons that you must put to heart:

1) A part of what you earn is yours to keep (pay yourself first)

Simply put, a part of what you earn on a daily, weekly, monthly or yearly basis is for you to keep and save. Avoid spending all your earnings on things that are not necessary and that do not bring more earnings. Arkad recommends to save at least one-tenth of your paycheck, or more if you can afford. 

2) Seek advice to those who know the way of gold

Do not seek advise about jewelries from a brickmaker for they will just bring you cheap broken glass that shine cheaply. Instead, counsel with a brickmaker when it comes to his craft and how you can produce better and stronger bricks than can give a man perpetual dwelling. Likewise, counsel with men who know the way of gold, because they have already amassed enormous wealth and will eventually help you as well.

3) Every gold piece you save is a slave to work for you (what you save must earn)

Money saved must be put to work by investing. Earnings from these investments will create more soldiers for you to earn. It is not enough to just save. Each and every dollar will gladly work for you tirelessly if you put them in the right investments.

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Arkad had gathered all the laborers who wanted to attend his lectures. For seven days, he shared to them all that he had known about the ways of money and came up with seven cures for a lean purse.

Seven Cures For A Lean Purse

1) Start thy purse to fattening

Build a fortune by laboring. We all have the same opportunity to succeed through our chosen craft(s). Our chosen career is a means for gold to stream endlessly. If you have the willingness to work hard, then you can generate income that will allow you too keep one-tenth of your earnings. 

Arkad continued to tell his listeners that “Surely, it is the law of the gods that unto him who keepeth and spendeth not a certain part of all his earnings shall gold come more easily. Likewise, him who’s purse is empty does gold avoid.”

2) Control thy expenditures

As our wealth expands, so does our desires. The book mentions that having tremendous wealth only to spend it as fast as it was generated brings misfortunate to a man. Our desires will not be quenched, but the only way to control them is by prioritizing. 

“….That what each of us calls our necessary expenses, will always grow to equal our incomes unless we protest to the contrary. “

“Confuse not the necessary expenses with thy desires, each of you together with your good families have more desires than your earnings can gratify. Therefore are thy earnings spent to gratify these desires in so far as they will go. Still thou retainest many ungratified desires. All men are burdened with more desires than they can gratify.”

Through my experience as a young boy, I had the skill or mentality to prioritize which things are neccessary and which things I only buy as a way to reward myself when I achieve a goal. This mindset proved to be a profitable friend for it has kept myself away from spending mindlessly. For I know the value of every dollar that I earn and save, I rarely succumb to earthly ambitions such as luxury goods that bring little to no value to a man’s character.

3) Make thy gold multiply

Investments are one of the ways to allow your wealth to work for you as a slave. And wealth, will happily and tirelessly do its duty. Making sound investments that double or triple your principle is good in the eyes of luck.

4) Guard thy treasures from loss

For every investment opportunity presented to you, there is a risk of losing your capital. Being smart by consulting people who know better than you will keep you away from losing your hard-earn money. Of course, we are not perfect and we will venture into opportunities that will bring us misfortune. We treat these instances as learning experiences and refrain from doing it again in the future.

5) Make your dwelling a profitable investment

Purchasing your own home that you can be proud of is a profitable investment for the house generates equity through time. Not only that, as your spouse decorates the house according to his/her vision, then you create a dwelling place that you can be proud of and so will your living conditions be worthy of all the effort and hardwork that you put in. Nothing beats coming home to a wonderful place that breeds life, love and warmth after a long day at work. I have heard somebody say that a mortgage, paid consistently, will not cost $3,500 forever (payments will likely go lower as you finish your contract), likewise, leasing an apartment will not stay at $3,500 forever. Through inflation and other factors that affect increase in prices, then you will end up paying more, eventually. 

6) Insure a future income

Through dividends and other sound investments that bring passive income, you are insuring yourself of a continuous flow of wealth even as you become of old age and pass to the darkness. This keeps you from worrying about getting into your senior years. As a senior or a retiree, the only thing that you should be looking forward to is enjoy the remaining years you have, not worrying about them. 

So as early as you can, start setting up retirement accounts and other passive income streams that will set you up for success to support you through your golden age.

7) Increase thy ability to learn

This is the fastest way to amass wealth. Utilize and leverage your income-generating skills to earn more. Never settle with mediocrity. Complacency is sometimes a curse that kills dreams. God didn’t give you a powerful brain to just use it at one-fourth of half of its running capacity and potential. Rather, He wants you to become great at what you do (that will honor him). Marco Pierre White, one of the greatest British chefs, mentioned, “If you have dreams, then you have the responsibility to yourself to make them happen. Otherwise, you’re just a dreamer.”

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The Five Laws of Gold

“Gold is reserved to those who knows its laws and abide by them”

Pretty much, these laws are very straight forward that they need no explanation

1) Save one-tenth of your earnings

2) Find profitable investments

3) Invest with wise people who know the way of gold

4) Do not invest in things that are unbeknownst to you

5) Do not try to force impossible earnings

Listening to opportunities that are too good to be true have high chances of failure. If an opportunity promises you hundred-fold or thousand-fold of income, then be cautious and analyze it first. Trying to push or stretch money too much will make it leave you. Unrealistic timelines and gains bring havoc to anyone who aspires to get rich.

I’ve been a victim of this mindset. When I was younger, I told myself that by the age of twenty-five, I will be succesful already. When it didn’t happen and life intervened, then I became depressed about my progress. When I started to participate in the stock market by trading on a daily basis, I lost so much money that its effects still ripples today and has changed my financial trajectory tremendously.

Instead of giving up and hating myself even more, I changed my mindset. I know that my big break will happen in the future and while I take a step closer towards it everyday, I will enjoy the process, whether good or bad. Now, I feel happy and confident and worry less.

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The Great Walls of Babylon

Babylon was at siege and the king and most of his men were away, fighting a different war. The citizens of the kingdom became weary and fearful thinking of their unfortunate demise. Despite all of the negative inquries that a a veteran soldier was receiving, he was confident that Babylon will prevail, for its walls are mighty and have stood the test of time.

This story basically explains that with the advent of financial products that protect us from unforseen events such as: life and medical insurance, mutual and other types of funds, then we can shield ourselves from unexpected events that can pull us down from where we are standing. There is no more excuse not to be protected in this day of age. If you do not worry about yourself too much, then do it for the people who love you and who you will leave behind in the event that something happens to you.

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Work, is the key to success

The book emphasizes on the idea of treating work as a wonderful friend. Not only does it give purpose to a man, but through it, will flow streams of gold and allow a man build his fortune (if you are wise enough to manage it). People treat work as a curse for they cannot see what lies beyond the physically-draining labor. These people only think about retirement and how they can get away from the grip of laboring. In reality, if you do not insure or preparing for retirement wisely, then you will be bound to hateful laboring until you pass away. 

Whenever a friend is lost, I always ask them the question “What is that one thing that you love doing that you will still do even if you don’t get paid doing it?” Most of them cannot answer this question, and I don’t blame them. We’ve been programmed to do or act on something only when there is a monetary reward on the other end. But think beyond the money, think about how many people you can touch and help, find the purpose in what you love and see how many lives will your passion allow to become better. If you’re able to answer this question, then you’ve found your purpose in life and should find ways to work towards improving that skill or passion.

There is no secret to amasssing wealth but to work. Since you’ll probably work at least thirty to fifty years in your lifespan, then you better find something that you will enjoy and stick to no matter the outcome.