Introduction
“The Richest Man in Babylon” by George S. Clason is a classic personal finance book characterized by a use of parables that parallels ancient Babylonian life and carries priceless financial knowledge over time.
The novel is made up of the combined messages of stories set in the prosperous city state of Babylon that to instill financial lessons and wisdom.
The Man Who Desired Gold
This is a story about Arkad, who calls himself the richest man in Babylon, and he now went on to explain the secrets of wealth to a group of men eager to learn. Lending particular attention to consumption control and some of the investor’s part of the revenue are also recommended.
Richest man in Babylon
Arkad says that his rich friend had told him the secret to his riches and he believes that it was the driving force that made him into a wealthy man. He proposes one of his key principles which is efficient use of resources and setting up a system for steady savings.
Seven Cures for a Lean Purse: Arkad explains seven building blocks of financial success, namely, allotting at least 10% of your income for savings, engaging in investing for wealth creation, and evading debt where they are not necessary.
Meet the Goddess of Good Luck: Thus, you have to know that you need to be willing to take challenges in your life when chances come. Opportunities tend to go to the man who is prepared and so willing to substitute hope to success.
The Five Laws of Gold: Arkad values 5 principles of a successful money accumulation, referring to such requirements as guarding a principal investment to prominent suggestions from experts in the field and sound perception of any kind of risks.
The Gold Lender of Babylon: This narrative portrays the role of compound interest and highlights the advantages of lending money and accruing interest. In this way wealth builds up and exceeds loverly expectations.
The Walls of Babylon: Arkad is less likely to lose money and be prone to tragic results of impulsive decisions. He suggestion is that one should not put the eggs into one basket and seek out the investment chances with the best possible return per risk measure.
Summary
“The Richest Man in Babylon” addresses the oldistic principles of personal finance that include spending less than you earn, keeping savings and investments under control, and constantly expanding your knowledge into money management. It is a book that is filled with helpful hints which, at the same time, are wrapped inside an artfully made story which probably takes place somewhere in the past but feels very close to our part of the earth.