Introduction to The Richest Man in Babylon Book
The Richest Man in Babylon is a book that teaches you how to become rich and have financial freedom. The book is about earning money while you’re sleeping which is also known as passive income.
The 4 laws of wealth have been taught in this amazing book. The author of the book is George Samuel Clason. And, the book has been translated into so many different languages.
The book “The richest man in Babylon” is also called “the bible of financial freedom”. I’ve to say this book is amazing. This book will change your life completely.
The Richest Man in Babylon book teaches you how to grow your business, how to grow your money, and how to become rich from investing and reinvesting. You will learn today how to multiply your income.
The richest man in Babylon book also has the strategies and principles that will make you rich. I’m going to share the golden money rules, summary, and principles from the book- the richest man in Babylon.
Besides, this book also tells how Babylon became the richest city in the world.
Before start, I recommend you read the full book after reading this post. This book will change your entire life. Reading this book will a great start to self-improvement. I’ve mentioned the link to this book in the last section.
Summary of The Richest Man in Babylon
In an ancient city called Babylon, a person named Arkad was the richest man in Babylon city. By the way, Babylon was the richest city in the world in those days.
Arkad’s friends Kobi and Bansi were poor, they didn’t have enough money to feed their family. They both decided to meet Arkad and wanted to know how to become rich.
Bansi and Kobi took some childhood friends with them and went to the palace of Arkad.
Bansi told Arkad-” Arkad, we studied in the same school, lived at the same place but why only you got lucky? Not us. We’re still poor. We even don’t have money to feed our children. Can you teach us how to become rich like you? ”
Arkad replied- ” Since childhood, I was observing the life of millionaires. Millionaires have a lot of privileges. They can eat what they want, they can go to places wherever and whenever they want. ”
I went into the search to become rich. And I promised my self, the day I will find the success mantra, I’ll start doing it from the same day.
I did the job of a scribe where I was supposed to write on soil tablets. I was doing hard work to become rich but my whole earnings were being spent on my expenses only.
Algamish the Moneylender
One day a very rich person named Algamish came to me. Algamish asked me to complete his work in 2 days, in return, he’ll pay me extra 2 copper coins.
Arkad worked hard for 2 days to finish the task. But he didn’t finish.
Algamish visited after 2 days and he was angry because the work hasn’t been completed.
Arkad says-” I will finish this working the whole night but in return, but I want your promise to teach me how to become rich. ”
Algamish agreed. Arkad finishes the task and asked Algamish to keep his promise.
He says – “ Algamish, I’ve finished the job. Now it’s your turn to fulfill your promise. Please tell me how you became rich? ”
Algamish replied- “ I became rich when I learned, I should keep some of the money for myself first. Save 10% of your income every 1st of the month. ”
Arkad started saving 10% every month. He realized that there was no effect on his living expense. He was living, as usual, he used to live before.
One Year Later
After one year, Algamish came.
Algamish asked Arkad how he’s using his savings.
Arkad said- I gave my savings to Azmar to buy jewelry. Azmar went to the ocean, and he’ll bring jewelry from another city in cheap and I’ll sell herein profit.
Algamish asked- “ Azmar knows about jewelry?
Arkad said- “He is a brick maker.”
Algamish got angry and said- “ How a brick maker can know the difference between real and duplicate jewelry? ”
Algamish was right, Azmar brought duplicates jewelry. That was the wrong decision taken from Azmar. But it’s okay, humans are designed to learn, and people learn from their mistakes.
Now, Arkad has to start saving again from the beginning.
After one year, Algamish visited again and asked the same question. How he’s using his savings?
Arkad said- ” I’ve given my money to a person named Agger who is a shield maker. Agger bought bronze from that money and gives me rent after every four months.”
Good, And what do you do with the rent. Algamish asked.
Arkad said- I buy stuff for my family. I buy good food, wines, clothes, etc.
Algamish said you’re eating your saving’s children. You should reinvest saving’s children and again reinvest saving’s grandchildren. Keep doing this until you’ve got an army of money.
Make your money work for you which will multiply more and more income.
After Two Years
After two years, Algamish came and asked Arkad- “ Have you become rich? ”
Arkad said- “ Yeah, I’m rich now. But I want to become richer. And I’m letting my money work for me. I’m using saving’s children to earn more and more money. ”
Algamish said-” You’ve learned all the lessons to become wealthy. ”
Algamish was impressed with Arkad and he made Arkad his partner.
Arkad was following all set of money rules to generate more income and thus he became the richest man in Babylon.
Arkad’s friends said- “You’re so lucky, Alagamish made you his partner. ”
He said- “I was keen to become rich and I followed all money rules taught by Algamish. Life gave me an opportunity because I was prepared.”
The Richest Man in Babylon Money Lessons
Algamsih taught Arkad to save money for yourself first. This was the first lesson to become rich. Now, I’ll tell you all the secrets to become rich from the richest man in Babylon.
1. Pay Yourself First
The first lesson from Algamish is to pay yourself first. I know this sounds easy, but many people skip this step.
It’s very important to pay 10% or more of your earnings to yourself. It doesn’t matter how much you earn, cut 10% of your income for savings.
For example, if you earn Rs.10,000, Cut 10% which is Rs.1000 for yourself.
This is the first thing you have to do when you get your paycheck.
Keep doing this and when you have enough money, invest those savings.
Also, The author of the very famous and best selling book Rich Dad, Poor Dad, Robert Kiyosaki says the biggest difference between rich and poor is The Rich Buy Assets, whereas The Poor buy liabilities.
By doing this process, the rich become richer and the poor become poorer.
You should invest money in the things which would generate income every month. For example, Funds, real estate, bonds, etc.
To learn more, you should read the whole book, trust me the book is really interesting.
Saving 10% for ourselves is a great habit that will save money for you to invest in assets.
2. Reinvest your Saving’s Children
The income which is generated by savings is called saving’s children. Put 10 % of your saving’s children to work for you and generate more income.
Repeat the same for saving’s grandchildren, great-grandchildren, and so on.
Multiply your income using this strategy.
3. Take advice from the right person
Do not do the mistake that Arkad did, giving the money to the brickmaker to buy jewelry. Always take advice from the right person.
Take money advice from the experts in finance. For me, financial books (54 Financial Books List) are my money adviser.
4. Control Your Expense
As mentioned above, keep 10% for yourself first and use the 90% to survive. Do not buy things which are not necessary.
Lastly, Arkad said to enjoy your life completely. Do not let your savings put you in trouble. Keep aside your greed of money, save, and invest wisely.
These money rules will not make you rich overnight. But after a few years(Depends on saving’s income), you will be richer.
These are the habits of successful peoples of Babylon city.
The richest man in Babylon 10 Rules
- Pay yourself 10% of the total income.
- Invest your savings in assets that generate income.
- The income generated from Saving is called Saving’s children. Track your earnings.
- Reinvest the profit generated by saving’s children. This will multiply your income.
- Reinvest the income of grandchildren of saving and children of saving’s.
- Make your money work for you.
- Create an army of money that will accumulate more income.
- Control your expenses. Don’t buy things that are not necessary.
- Enjoy your life happily.
- Don’t ask for advice from a non Expert person. Ask from an Expert.
The Richest Man in Babylon Review
The Richest Man in Babylon Book is a must-read book. If you want to accumulate income, no school or college teaches you how to be rich. If you want financial freedom, you have to learn it by yourself.
This book is termed as the bible of financial freedom. Give it a try today. The 94 pages will teach you to be rich in a few years. You will learn golden rules that will multiply your income while you are sleeping.
The People of Babylon used the same strategy mentioned in the book. And Babylon became the richest city in the world. The book will cost you Rs. 315. What you will learn will be worth millions. If they can, why not you can?
How Much Money You are going to save for investment? and Where you’re going to invest?