11 money lessons from the book ‘The Richest Man in Babylon’

Regarded as one of the greatest timeless book of finance, written in 1926; ‘The Richest Man in Babylon’ gives the insight of getting wealthy through a series of short stories.

Here are 11 important takeaways from the book:

1) A great desire of wealth is the starting point

This is true in money as in other areas; where a determination is, a way can be found. The most important thing to have in accumulating riches, is a strong desire for wealth.

“Desires must be simple and definite. They defeat their own purpose should they be too many, too confusing or beyond a man’s training to accomplish” pg. 40

2) Start to earn

Find a legitimate way to gain income.

“In tilling the soil, in honest trading, in all of man’s occupations, there is opportunity to make a profit upon his efforts and his transactions” pg. 47

3) Save not less than one tenth of your earnings

Before you start paying bills, debts or buying food; for every income, pay yourself first

“For every ten coins thou placest within thy purse take out far use but nine. Thy purse will start to fatten at once and its increasing weight will feel good in thy hand and bring satisfaction to thy soul” pg. 27

The money you keep can later be used for substantial belongings such as gold, land, herds, merchandise and for investments.

4) Learn to live upon less than you can earn

Controlling your expenditure will prevent loss of your money.

“Study thoughtfully thy accustomed habits of living. Herein may be most often found certain accepted expenses that may wisely be reduced or eliminated” pg. 27

5) Establish a constant flow of income

The money you save should be put into work so it can multiply by itself.

“A man’s wealth is not in the coins he carries in his purse; it is the income he buildeth, the golden stream that continually floweth into his purse and keepeth it always bulging….an income that continueth to come whether thou work or travel” pg. 32

6) Guard your treasure from loss

Don’t do business or purposes which you are not familiar with. Before you entrust your investments in any field, account yourself with the potential dangers. And before you loan your money to others be assured of their reputations to repay.

“The first sound principle of investment is security for thy principal. Is it wise to be intrigued by larger earnings when thy principal may be lost? I say not. The penalty of risk is probable loss. Study carefully, before parting with thy treasure, each assurance that it may be safely reclaimed. Be not misled by thine own romantic desires to make wealth rapidly” pg. 33

7) Ask for advice

Consult with a professional of a particular field. Secure the advice of those experienced in the profitable handling of money. Use their wisdom to protect your money from unsafe investments

“Without wisdom, gold is quickly lost by those who have it, but with wisdom, gold can be secured by those who have it not” pg. 69

8) Good luck favors men of action

If an opportunity presents itself, be sure to step in quickly.

“The spirit of procrastination is within all men. We desire riches; yet, how often when opportunity doth appear before us, that spirit of procrastination from within doth urge various delays in our acceptance. In listening to it we do become our own worst enemies” pg. 55

9) Increase your ability to earn and never stop to learn

The more we acquire knowledge in our careers, the more we may earn.

“More interest in my work, more concentration upon my task, more persistence in my effort, and, behold, few men could carve more tablets in a day than I. With reasonable promptness my increased skill was rewarded, nor was it necessary for me to go six times to my master to request recognition” pg. 41

10) Avoid debts at all cost

“To secure wealth quickly youth often borrows unwisely. Youth, never having had experience, cannot realize that hopeless debt is like a deep pit into which one may descend quickly and where one may struggle vainly for many days… Yet, I do not discourage borrowing gold. I encourage it. I recommend it if it be for a wise purpose” pg. 83

“If thou wouldst help thy family or thy friends, find other ways than risking the loss of thy treasure. Forget not that gold slippeth away in unexpected ways from those unskilled in guarding it” pg. 87

11) Plan for the future

One should plan certain investments or provisions that may endure safely for many years and yet will be available when the old age arrives.

“A man may buy houses or lands for this purpose. If wisely chosen as to their usefulness and value in the future, they are permanent in their value and their earnings or their sale will provide well for his purpose” pg. 37

“Babylon is an outstanding example of man’s ability to achieve great objectives, using whatever means are at his disposal. All of the resources supporting this large city were man-developed. All of its riches were man-made ”— George Samuel Clason

Hopefully these lessons will help you in your journey of accumulating riches.