The principles of wealth creation haven’t changed since money was first invented. Some of the most insightful and inspirational books were written decades ago yet they are still relevant today. One of the most enduring classics is The Richest Man in Babylon by George S Clason, first published in 1926 and more recently published by Penguin.
This book is a series of parables set in Babylon, which became the wealthiest country of the ancient world. The parables centre around Arkad, the richest man in Babylon. As the parables unfold we learn the secrets of Arkad’s success. Arkad’s seven cures for a lean purse are:
- Start thy purse to fattening. Say to yourself ‘A part of all I earn is mine to keep’. Set aside ten percent of your income and watch it grow over time.
- Control thy expenditures. Don’t confuse necessary expenses with desires. Everyone has more desires than they can ever hope to fulfill, so limit your desires to what you can achieve within your income
- Make thy gold multiply. Setting aside savings is one thing, but you should invest your savings to increase your wealth
- Guard thy treasures from loss. The first sound principle of investment is security of your principal.
- Make of thy dwelling a profitable investment. Borrow money to build or buy a house, pay it off as soon as you can and your living costs will be lower.
- Insure a future income. Provide in advance for the needs of old age and the protection of your family
- Increase thy ability to learn. Cultivate your powers, study and become wiser and more skilful. This will give you the confidence to achieve your desires.
This is a great book to give young people. It is easy to read and full of ancient, but still highly relevant, wisdom.