The Richest Man in Babylon
An Historical Sketch of Babylon
As the chapter name suggests, this is a short version of a short summary of how Babylon came to be, how it survived through its applied engineering and how it eventually fell and became a ruin.
It is important to note that Babylon is the first recorded city to have writing (on engraved clay tablets), astronomy, math, science, and most importantly, money as a means of transferring wealth.
Babylon came to be from almost nothing, only fertile land, and a river. Everything else was built by people who applied their intelligence. I cannot help but assume this is going to be used as a metaphor as I go along.
Babylon was never conquered, its walls kept the city safe and under wise rulers the city has prospered and gained massive technological advancements (metallurgy for instance, while everyone else was still in the Stone Age).
The fall of this city was odd, at best. Nabonidus, the king of Babylon, fought Cyrus outside the city to avoid a siege. The Babylonian army was defeated, and the king fled. Cyrus entered the city through wide open gates, but in a few centuries, the wealth and prestige faded away gradually until nothing remained. It returned to the dust it once came.
Even with this event happening. The wisdom of Babylon remains. The chapter ends with this:
Money is the medium by which earthly success is measured.
Money makes possible the enjoyment of the best the earth affords.
Money is plentiful for those who understand the simple laws which govern its acquisition.
Money is governed today by the same laws which controlled it when prosperous men thronged the struts of Babylon, six thousand years ago.
- George S. Clason
Important to note that money is restricted to earthly gains and pleasures. There is no implication of the spiritual which indicates more than one dimension, and that money cannot be used for spiritual enlighten or to alleviate suffering.
The Man Who Desired Gold
This seems to be the beginning of a journey for Bansir to become a man of means. He was upset that his wallet (purse) was always empty and that was the condition his best friend, Kobbi, was in as well.
The chapter is a dialogue between them where they realize that what they need is income, a constant flow of money that would fill their pockets regardless of what they do. They both agree that to what they have put their minds to, they have been successful. Bansir was building the best chariots in Babylon, while Kobbi was an outstanding musician. Both realize that their childhood friend, Arkad, realized this income and was considered the richest man in Babylon. Even the king was rumoured to seek his advice. They gather all their childhood friends and go to meet Arkad, to seek his wise advice.
You see what you aim at and remain blind to what you don’t.
The Richest Man in Babylon
Advice is one thing that is freely given away, but watch that you take only what is worth having. He who takes advice about his savings from one who is inexperienced in such matters, shall pay with his savings for proving the falsity of their opinions.
- George S. Clason
The chapter introduces the idea of savings and investing and then using the gained interest to earn (invest) more.
Each month, a 10th or more should be saved and all other expenses shall be adjusted accordingly. When the year ends, a small fortune shall be saved which can be spent to earn more (invest).
The next year, the fortune is rebuilt plus the profits of the previous investments.
Pay yourself first.
- George S. Clason
When seeking wisdom, we should do so from people that are proficient in what they do.
Seven Cures for a Lean Purse
In this chapter, the king of Babylon, Sargon, after returning from battle is confronted by a problem. There were no more big projects to work on in the city, thus the stream of gold for these works was no more. The Royal Chancellor was explaining this to the king, and he noted that all the wealth had accumulated to very few in the city.
The king wishes to teach others how to accumulate wealth and summons Arkad, the richest man in Babylon, whom he then tasks to teach others his wisdom for gaining gold.
Arkad learned 7 ways, or cures, to accumulate wealth and he teaches them to the 100 students that would learn from his wisdom so that they in their turn may teach others once they master this skill.
#1 Start Thy Purse to Fattening
This is a reiteration of something that was already stated in the book.
Each of us that works has an income flow already. Instead of spending all the money we make, we only spend a portion and keep the rest. In time, these savings will accumulate and form a small fortune.
Pay yourself first.
#2 Control Thy Expenditures
Determine necessities and desired, needs and wants. Accurately determining the price of necessities is paramount to a solid personal economy. Save at least 10% of what you make and whatever is left is available for the enjoyment of life. Based on what is left, one may decide to save more money and still have enough to be satisfied with fleeting pleasures.
Make a budget. Watch on what money is spent. Adjust when necessary.
#3 Make Thy Gold Multiply
Once a small fortune is formed it should be invested so that it generates more income. Once the interest is returned, that should be invested as well, which will bring more money in return, compound interest basically.
The key is steady investments and patience.
#4 Guard Thy Treasures from Loss
A wise advice. Only invest where your principal is assured. At the very least, no money should be lost in an investment, or the risk of it should be minimized as there rarely is such guarantee.
One should seek the advice of people that handle money when it comes to making money. The same applies when investing, do not trust a brickmaker to buy jewels.
Often enough we are rushed by others to make investments because it is a good time or that they know it is good because they invested as well. When people do that, they are emotionally attached and that can cloud their judgement. It may sound convincing, but for something to be good it must be a converging result and not forced or convinced.
#5 Make of Thy Dwelling a Profitable Investment
A bit unexpected, but somehow known. One should seek to own their own home rather than pay rent as that will generally ensure that even if there are fluctuations in income, that home is secured.
The advantage is that by owning your own home you decrease the amount spent on necessities as the rent price is dropped. There is still the mortgage to be paid, but that can be covered from the monthly savings to be paid in advance.
#6 Insure a Future Income
At some point our power will become less as we advance in age and become less capable to provide for our loved ones. This cure is about retirement and saving up for dark times where trouble will find us and make it difficult to produce money. A safety deposit in case of emergencies is a very wise idea and ensuring that invested money will provide more than enough for retirement is something everyone should look into.
This is where I am currently at. All previous cures are being applied.
#7 Increase Thy Ability to Earn
The last cure is about proficiency. In order to earn more at our current workplace we must become better. To specialize, and our skill will be noted and rewarded, if not then there are other companies that will appreciate our skills.
This is from HealthyGamer stream about Career & Life Advice (see Career & Life Advice with Dr. K and Mrs. K), Mrs. K makes a note, and Jordan B. Peterson presents this in a similar light. You shouldn’t ask for a raise, you should explain why you deserve a raise. Basically, say why you should be paid more and not just demand it.
Doing extra work that you are not paid for helps because then you can ask if you are going to get compensated for it and if not, then you can ask whether it is expected that you should still keep doing that even though you are not paid for it. This is something Dr. K highlights in the stream.
Increasing the main income flow helps with greater investment opportunities and better support for our loved ones.
The Goddess of Good Luck
The chapter contains a number of stories summarizing to people being procrastinators and that is why good fortune has avoided them. It brings up the gambling and how almost nobody, except the gamekeepers, manage to turn a profit that way.
Good luck comes from opportunities that, if missed, become misfortunes in hindsight. To attract good luck one must not hesitate to take on the opportunities that are presented to them for later they may not be available anymore.
Men of action are favoured by the goddess of good luck.
- George S. Clason
Fortune favours the bold.
The Five Laws of Gold
Nomasir, Arkad’s son, has received a purse of gold and a tablet with the 5 laws of gold from his father when he was very young.
He was tasked by his father to understand the laws by which to make a small fortune and maintain it so that he may be eligible to inherit the estate and tend to it rather than waste it.
Upon his return, 10 years later, Nomasir told how he quickly lost the gold to scammers on horse racing bets, bad partnership with someone that was good with spending and bad with earning, promising to ask for money from their father but kept delaying.
Nomasir has spent the gold and had to make ends meet with very little. Only then did he turn to the wisdom of his father given to him through the tablet.
Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earning to create an estate for his future and that of his family.
Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
Gold slippeth away from the man who invests it in business or purposes with which he is not familiar or which are not approved by those skilled in its keep.
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.
The tale of Nomasir continues as he started to save money once he found an employer and after a while, his employer brought him into a venture group to buy bronze from a mine very far away as they were building the outer city walls and there was not enough bronze in the city when the time came to make the gates.
Nomasir was enriched by this investment and continued with other investments with the group. He returned to his father after 10 years and not only returned the initial bag of gold that he easily lost, but two more as well as a gift. The initial gold was returned and the other two were tribute for the imparted wisdom, while mentioning that the value of wisdom cannot be measured in gold. It was a symbol that wisdom values more than gold.
The chapter continues by restating each of the five laws and agreeing with them. This is somewhat funny and biased as well. If these laws contain such wisdom, why do this extra work? The wisdom should be obvious enough. It’s either filler or marketing. Arguing with yourself to sound smart or convincing.
The Gold Lender of Babylon
This is a story about lending, or investing, money in a way that reduces risk. Warranties of returns are the basic mechanism by which Mathon, the gold lender, reduces the risk of losing money through lending. Either asking for a material warranty, such as property or cattle or objects of value in case the debt is not repaid, or people that have an income (working people) and are honourable.
Mathon advises Rodan to only invest or lend money to people who know their trade and can repay the debt, as well as lending few pieces of gold to not lose it all. Or even more, to lend portions of it to different people. Should the lend turn out to be profitable, then the experience can be repeated with the same client and with more gold.
Mathon also advices about people who do not have gold or means to acquire it, for they ask for it and some may even say or suggest that the owner is obliged to help, such as Rodan’s sister that wants the gold for get husband so that he may become a merchant.
The advice is very wise. It is good to help others, but we must do it in such a way that the burden of the one we help does not pass unto us.
This is a theme that keeps showing up, security of investments, warranties and minimizing potential loss.
The Walls of Babylon
A story about the walls of Babylon being besieged while their army is on campaign with the king.
Banzar, an old soldier is reassuring the inhabitants that the walls will not fall as they never did. After the 5th night of the 4th week, the siege stopped, and the attackers retreated. This is used as a metaphor to describe the eternal need for protection that we have and how the walls of Babylon are o monument to that.
We cannot afford to be without adequate protection.
- George S. Clason
The Camel Trader of Babylon
The tale of Dabasir, the camel trader, from how he was just a boy borrowing and spending carelessly to be a respected citizen of Babylon.
He was very young and learned the craft of saddling camels from his father, but he started to spend more than he could earn, getting himself in debt from gold lenders and friends until he ran away from Babylon and joined a group of thieves. He was eventually captured and sold as a slave in Syria where he was subject to the judgement of others whether he would become an eunuch. Luckily, the king’s oldest wife, Sira, needed a camel tender.
The kind questioned Dabasir about camels to which he responded that he can kneel them, load them, saddle them, and repair their trappings as well as lead them on long trips without tiring. The king was pleased and assigned him as a camel tender.
Dabasir spent around a year in slavery, but did not join the other slaves in their socialization. Sira had questioned him about it, to which Dabasir replied that he does not feel as a slave for he was born free, thus he sits alone. Sira points out that regardless of his birth, if he has the soul of a slave, he will become one, and if he has the soul of a free man, he will pay his debts that ran him out of Babylon and become a respected citizen of the city. The debts are his enemies that he must defeat if he is to be a free man.
Eventually, Dabasir is freed by Sira whom will tell the king that he ran away. He was given two camels and food and water for a long trip back to Babylon. He decided to go, in the desert his supplies ran out and he was faced with a choice. To lay there and die as that would be a just end for a runaway slave, or to endure and push forward to Babylon. To accept his fate as there is nothing he can do, he is but a slave, or to get past his challenges, get home to Babylon, repay his debts, win back his wife that had left him and become respectable.
This is very similar to victimhood mentality. “What can I do? I am only a slave; I cannot do anything…”. The correct answer is to face what’s coming (#1: “Stand up straight with your shoulders back” - Jordan B. Peterson, 12 Rules for Life: An Antidote to Chaos).
Dabasir eventually makes it to Babylon, he asks indulgence from the people he had borrowed money from and to be patient until he can repay his debts. Most welcomed him, some even helped, while others were very disrespectful towards him. Marthon points him towards old Nebatur and became a camel trader. Little by little he repaid each debt, later on got his wife back and became a respectable citizen of Babylon. He managed to turn his life around through determination.
Where the determination is, the way can be found.
- George S. Clason
“Where there is a will, there is a way”.
The Clay Tablets from Babylon
The clay tablets relate to the story of Dabasir on how he managed to repay his debts after returning from slavery. He decided that one tenth (10%) of what he earned would pay himself, seven tenths (70%) would go into his and his wife’s living, and two tenths (20%) would pay to his creditors accordingly. A very few were bitter, but most were very supportive.
Each month he would have a different income depending on how the camel trading would go. After about 12 moons (1 year) he would pay all of his debts and be congratulated by his creditors.
The professor that did the translation was going through a similar struggle and decided to apply the same plan. The challenge was the same, having discipline to not spend the 10%, pay his creditors 20% and limit living expenses to 70%.
In about 2 years, the professor managed to pay his debts and freed himself from the fear of what his creditors might do if he did not pay. Even more so, he invested the 10% that brought him and his wife even more money.
The same rules get reaffirmed. Pay yourself first, invest what you save (to a certain degree) and minimize or eliminate debt. What is added is the discipline to keep this practice for long periods of time.
The Luckiest Man in Babylon
This chapter contains the story of Sharru Nada and how he became a free man after being sold into slavery by misfortune, by the actions of his brother.
On his way to Babylon where he would be sold, he was accompanied by two people. One was Zabado, a person that despised work and said that one must work only as much as is required and slack away as much as possible.
With an opposing mentality, Megiddo, was saying that work has been a good friend and that masters take good care of good hard-working slaves. Sharru Nada was assured of this by Godoso, one of the guards, that if is to impress the masters for being a good working slave, he would be bought, and if he didn’t then he would end up working to death on the walls.
Sharru Nada managed to impress a baker with his willingness to learn and that he will do good work (the right mentality one is looking for when hiring people, especially juniors, this is applicable to this day). Soon, he would do all the baking and later on propose to his master that he can bake more and sell the honey cakes from which he would get a portion (25%).
Soon he would find regular customers and meet Arad Gula, someone that will become a very close and dear friend. At some point, Sharru Nada would sell his cakes to the overseers at the wall where he would find Zabado breaking his back caring bricks.
Things seemed to go well, Sharru Nada was saving money so that he would buy his freedom the same way Arad Gula eventually did after being encouraged and impressed by Sharru’s enterprise. But they will part ways and Sharru would go work at the canals because his master took loans that were lost at the gambling table and offered Sharru as warranty for that loan.
After months of working and being tempted to run away or give up, he is saved from slavery by Arad Gula which bought the title to owning him and destroyed the tablet and ensured nothing remained. Arad Gula has chosen to free and partner with Sharru Nada and go to Damascus where nobody would know they were slaves.
Both made work their friend and for that they were rewarded with success (#2: “Imagine who you could be, and then aim single-mindedly at that” - Jordan B. Peterson, Beyond Order: 12 More Rules for Life).