The Richest Man in Babylon

The Richest Man in Babylon is an ageless literature that is written in old-fashioned English. Though written in the 1920s, it has become an indispensable companion for anyone who craves for wealth. Scintillating stories were used to expound the essentials of financial prosperity in an ancient setting (Babylon) for readers to have a grip on the subject-matter. George Clason seeks to acquaint the readers with the “Wisdom of Age” which is, undoubtedly, immutable even in this dynamic environment of ours. According to him, “Gold is reserved for those who know its laws and abide by them”.    

RULE 1: “Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family”.

The only way to secure your future is to earmark 10% of your income for asset accumulation. Endeavour to keep your expenses under control. A well-designed budget will instil discipline into you so that you could set aside your “seed money”.

RULE 2: “Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field”.

Make gold work for you. It is a tiny seed that grows into a mighty tree. Therefore, take advantage of opportunities to multiply your seed money.

RULE 3: “Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling”.

The need to seek professional advice before investing cannot be overemphasized. This is the only viable option available if you want to preserve your capital.

RULE 4: “Gold slippeth 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”.

Only invest in companies whose businesses you grasp easily. Dig deep to unearth valuable information before investing. Avoid climbing on the bandwagon- do a thorough analysis.

RULE 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”.

Gambling is different to investing which is concerned with purchasing something of value that will yield a fair return commensurate with the risk assumed over the holding period. Gamblers fall easy prey to fake financial advice.

These laws will help to fatten your lean purse and enjoy the best things of life.