The richest man in Babylon by George S. Clason would be one of the best book about money that I had ever read. Although this is a non-fiction books, the way the author tells its stories are like reading a novel. What a writing! It hooks me straight away after started reading it. The magic trick used by the author is that he convey the message deeply and emotionally inside the stories. For me, the author did a great job at it.
It all started,
when his two friends started to ask their friend named Arkad, “How could you be so rich?”. You are no better than us when we just starting out. And then, the story begins. Arkad told them exactly how he did it. Actually, they story also started exactly like his friends. It started when Arkad also asked an old and rich money lender on how did he become so rich while working as a money lender.
The old money lender is so thrilled when Arkad asked him that questions because no one had asked him that question before. Not even his son. All his life, people only asked him if they could borrow some money from him. Because of the question, the old money lender told him the big secret. The big secret would be part of all i earned is was mine to keep. In other words, we need save at least 10% of our income before spending our money.
If you still did not understand, watch and listen to the video below. Jim Rohn will clarify it all:
After that, Arkad started to practice the big secret of the money lender, and after three years he did it. He knows exactly what he needed to do to grow his money as much as the money lender. Then, his money started to grow so much until he become the richest man in Babylon.
A few years later, the King of Babylon started to become worry when his peoples, when they don’t even know how to save their money properly and spend it wisely. Combine both of it, it become your road map to a broke person. To avoid this from happening, his royal advisor would suggest Arkad, the current richest man in Babylon to teach them how to save money and spend it wisely. Arkad agreed when the King asked him to do that and he gives the seven cure for a lean purse for a straight seven days. One cure for a day.
The cure for the lean purse would be:
- Control your expenditure
- Make the gold multiply
- Guard your treasure from loss.
- Make your dwelling profitable investment.
- Insure a future income,
- Increase the ability to earn.
All of this cures are what he learns from the old money lender before he died and this is what had made the city of Babylon of the seven greatest place on earth. For more explanation about this cure, you have got to read the book yourself. Totally worth your time.
Fast forwards until Arkad was married and has a son. He had tested his son to go on a journey outside from his hometown for 10 years with 10,000 golds in hand and a tablets written about the fives rules of golds which are:
- Gold come gladly and in increasing quantity to any man who will put by not less than 10% from his earning to create and estate for his future and that or his family.
- Gold labor diligently and contentedly for the wise owner who finds it profitable employment, multiplying even as flocks of the field.
- Money cling to the protection of the cautious owner who invest it under advice of men wise in handling it.
- Gold slip away from the man who invest it in business or purposes with which he does not familiar or which are not approved by those skilled in it keeps.
- Gold flees the man who would force it to impossible earnings or who follow the trickster who trust it in it to his own inexperience and romantic desires in investment.
After 10 years, his son are back to his hometown and went straight to his father. He had told that the 10,000 golds he received had lost so fast after he start his journey. The only this he has is the the tablets with the 5 rules of gold.It turns out, the rules are more important than the 10,000 gold itself. Once he become poor after spending too much he would read the rules and started to practice it.
All of this happens long and thousand years before we are alive. But we can learn a lot from the history. Just like an old adage stated that, those who don’t learn history are condemned to repeat it. Read it guys and you’ll know it.
To learn about money matters and becoming financial literate are important to ensure financial stability. Heck, it is the first step that we can do but so many people neglect it. They all tends to focus on working and making more money as well as trapped in the rat race without notching.