In 1926, a man by the name of George Clason wrote a fictional novel called “The Richest Man in Babylon.” The short stories in this were created to teach readers about finance and smart spending. Little did he know that his short stories would continue to teach people for generations after his passing. Though the novel was one of the most influential pieces of literature in history, Clason constructed the book in extremely old English, making the modern version difficult to understand and relate to.
In this article, we will be discussing a small portion of the novel by understanding the 7 ways to get rich, taught by Arkad, a poor scribe who used these methods to become the richest man in Babylon.
1. Start thy purse to fatten
Arkads first advice was to pay yourself instead of others. He advised to keep at least 10% of your monthly income and not to touch it. Your monthly costs of living must decrease for you to grow your wealth. Arkad taught us that we need to live on less than we earn to exponentially grow our wealth (or fatten our purse).
2. Control Thy Expenditures
Arkads second piece of advice was to control your spending. Now that you have placed at least 10% of your income to the side, Arkad advises everyone to look closely at what leaves their bank account. He advises us to cut everything that we do not need to survive. In other words, he tells us to make sure everything that comes out of our pocket is a necessity, not a desire.
3. Make Thy Gold Multiply
After saving and cutting our expenses, Arkad tells us to invest the money we have gained. He asks a follower “Why should you work if gold can flow to you while you rest?” (extremely simplified from the version in the book. Clason 26). Arkad is saying to us that investing our savings is best as a good investment is the best way to grow without working. He warns us, however, to be careful when investing as a bad investment could bring us back to where we were before.
4. Guard Thy Treasures From Loss
Once you have invested and exponentially grown your profits, Arkad tells us to protect our financial gain by not putting money at risk. He specifically mentions avoiding ‘get rich fast’ methods when he says “Is it wise to be intrigued by larger earnings when thy principal may be lost? I say not.” (simplified Clason 34). This shows that once you have earned profit, you shouldn’t be greedy by quickly trying to take risks and get money. He says that a slow but steady increase is all you need.
5. Own Thy Own Home
Arkad’s 5th piece of advice might not be as relatable as the last four for a younger audience but it is still important to remember. Arkad recommends everyone to own their home. He says that purchasing a home builds your equity. Instead of paying your landlord you are paying yourself (like advice #1 stated). He also mentions that houses will rise in value making you even wealthier.
6. Insure A Future Income
During the 6th day of speaking to his followers, Arkad talks about the future. He advises everyone to invest as much as possible for retirement as that is when the workers are truly free. He states that people should start as young as possible and work towards a stable income once they are retired so that they may enjoy the pleasures of life freely.
7. Increase Thy Ability To Earn
The final piece of advice Arkad speaks about is increasing your ability to earn. This means by learning as much as possible in one's childhood, they can be more prepared for the future with highly demanded skills, thus earning them a higher salary. Increasing your ability to earn means being different from your competition and making your skills unique and in demand.
Arkad’s wisdom has been passed on for over 100 years now and is still impacting people to this day. His words have made people think about their finances and created wealth among the common folk of his time, and ours. This is only one section of the novel, the “Richest Man In Babylon” is a must-read and holds many more significant financial and lifetime advice between its covers.
Works Cited
Clason, George. “The Richest Man in Babylon”
Published in 1926 by Penguin Publishing Inc.
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