[Book Review] The Richest Man in Babylon
The Richest Man in Babylon is a timeless classic parable written by George Clason. George Clason is best known for writing a series of informational pamphlets on how to be financially successful. The phrase, “Pay yourself first” is credited to him. A caution before you set the expectation higher, George Calson was not one of the few richest men of his era.
Book Summary
The book demonstrates through series of short stories that the fundamental truths to wealth building are always relevant and transcends centuries. The ubiquitous theme of the stories is that a person can become rich by repeating this cycle of working hard and learning from one’s mistakes.
Detailed Summary
On King’s request, Arkad, the protagonist of the book shares his “seven cures to a lean purse” so that both individuals and society as a whole can reap the benefits of fiscal growth.
- Start thy purse to fattening: The meat of the book lies in this advice. “A part of all you earn must be yours to keep”.
- Control thy expenditures: Learning to live within your means.
- Make thy gold multiply: “A man’s wealth is not in the coins in his purse. It is in his income”.
- Guard thy treasures from loss: Principal should never be lost, skepticism on high interest yielding avenue is the key.
- Make of thy dwelling a profitable investment: A rather debatable one “Own your House”.
- Ensure a future income: Plan for unforeseen circumstances.
- Improve thy ability to earn: Strive to become wiser and more knowledgeable.
Bottomline
There were parts of book that I thoroughly enjoyed, like when author reiterates to spend less than what you make. In this regard, one of my pet peeves is people not understanding the difference between needs and wants. One can save a considerable amount if they only possess what they need rather than what they want.
And there were few advice like 5th lesson, owning vs renting out a property, where I respectfully differ from author’s point of view. I did run my damn numbers for myself and owning a real estate, bearing mountain of debt and expecting “let-out” money for repayment is like building castle in thin air.
Anyhoo the book should be among the first few on must-read list of anyone starting her/his financial journey. Grab your copy from Amazon.