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The Richest Man in Babylon

Review done by Thans Thai

“You’ve learned the lessons well. You first learned to live on less than you earn. Next you learned to seek advice from those who are competent. Lastly, you’ve learned to make gold work for you.”


Six cures for a lean purse

1. Start thy purse fattening
“A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford.”

Every $10 you put into your wallet, only take out $9. In other words, start with saving 10% of your income; of course, you are welcome to save more. Impulse desires are easily forgotten things that prevent you from building wealth. The ticket to wealth is to save for substantial belongings such as gold, land, and investments that increase your income.

2. Control thy expenditures
“Select those things that are necessary and others that are possible through the expenditure of nine-tenths of thy income. Cross out the rest and consider them but a part of that great multitude of desires that go unsatisfied and regret them not.”

Avoid enhancing your lifestyles as your income grows; rather, budget enough to pay for necessities and add a little enjoyment to your life but do it while saving a minimum of 10% of your income.

3. Make thy gold multiply
“The gold we may retain from our earnings is but a start. The earnings it will make shall build our fortunes.”

Now that you have some money set aside, it’s time to put it to work. When you invest your cash, it can reproduce and bring you a steady stream of income!

4. Guard thy treasures from loss
“The first sound principle of investment is security for thy principal.”

Guard your treasures from loss by investing only where your principle is safe, where you can easily access it, and where you can collect good returns on your money. There is no way to make massive amounts of money overnight. Instead, it takes time, effort, and knowledge.

5. Insure a future income
“No man can afford not to insure a treasure for his old age and the protection of his family no matter how prosperous his business and his investments may be.”

Provide in advance for the needs of your growing age and for the protection of your family. Save for urgent situations and retirement!

6. Increase thy ability to earn
“Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow. The sooner you plant that seed the sooner shall the tree grow. And the more faithfully you nourish and water that tree with consistent savings, the sooner may you bask in contentment beneath its shade.”

Start with goals that are simple, specific, and definite. Learn to obtain your goals little by little and train yourself to secure larger goals. The process to accumulate wealth is first in small sums then in larger ones as you learn and become more capable. Your goals must be simple and definite. They defeat their own purpose if they’re too confusing or beyond your capability to accomplish.


 

The five laws of gold

1. The first law of gold
“Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.”

When you save part of your income, it helps you build up your wealth. The money that you invest wisely to earn more and the value compounds over time.

2. The second law of gold
“Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.”

Make your money work for you to create more earnings and take advantage of compounding interest.

3. The third law of gold
“Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.”

If you learn from financial experts, you could be a wise person who knows how to invest.

4. The fourth law of gold
“Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.”

Invest in what you know! Invest in your core competencies!

5. The fifth law of gold
“Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.”

Be careful whom you trust with your money! Don’t fall for get-rich-quick schemes!

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