Review/Summary: The Richest Man in Babylon | Book

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The Richest Man in Babylon Summary: About 3,000 years ago, there was a poor man named Bansir who lived in the city of Babylon.

Bansir was building a new chariot so he could deliver the goods and earn a few Shekels (coins) to feed his family's hunger. But that day instead of building his chariot, He was sitting near his house all day long pondering about something.
The richest man in babylon book review/summary

The Richest Man in Babylon ReviewHis friend Kobbi (a musician) saw him sitting idle, and thus the following conversation began -

Kobbi: Bansir my friend, you look pale, what troubles you? And why aren't you working on that chariot today? Ah I get it, the gods must have blessed you with a good fortune, and perhaps a treasure was brought to you. If it is true, then spare me a few shekels (coins).

Bansir:  Stop your nonsense, I don't even have one shekel for thyself. I'm undoubtedly poorer than you, and my purse is leaner than yours.

Kobbi: You have no coins in your purse and yet you sit here do nothing! Why don't you go complete that chariot? Am I the one who's going to feed your children? What's wrong with you today? Tell me!

Bansir: I had a dream yesterday. I had my own castle and was walking on piles of gold, it's walls were made of silver. For one night, I felt incredibly rich but it was just a dream.

(Bansir sighed as Kobbi patted him on the shoulder.)

Kobbi: I have an idea bansir, I remembered something important. I have a friend who goes by the name of Arkad. He is known to be very rich. How about we go and seek knowledge from him, maybe he could aid us out from our misery.

The poor man went straight to Arkad's mansion. Back in that time, Arkad was known to be 'The Richest Man in Babylon'.

Kobbi: I salute thee old friend Arkad, do not be troubled! We did not come begging for gold, yet we do seek a good friend's wisdom for acquiring a fat purse.

Arkad greeted the two men with a smile, then said: Did any of you dream of gold?

Kobbi: Yes! Yes! Bansir saw himself as one of the rich.

Fortunate indeed, replied Arkad.

Arkad: Your dream is the first important lesson for acquiring gold.

Bansir: My dream, A Lesson? How?

"The desire for Gold" -replied Arkad.

Arkad: For me, it all started with desire, a vision and then I had to find the ways for making it as real as it was in your dream. Arkad continued with his teaching and said that for every ten coins that you earn, pay yourself one coin first and then spend the rest of the nine coins.

Algamish, the man who taught Arkad the secrets of wealth insisted that he pays himself one-tenth first.

For most of us, it's going to be something like this, "Well, I can't, I can't do it. I have to pay for this; I have to pay for that. I can't put away that one coin." Well, Here's the thing. If you make a salary of $3000 a month, and your employer calls you in, and he says, "You know what, our business isn't doing so well and so what we're going to do is pay you $2700 from now on." Don't tell me that you won't be able to make ends meet. You won't be homeless, trust me. In fact, it probably won't affect you in any way. You won't even notice it. So, again the first concept. For every ten coins that you earn, pay yourself one coin first, and then you can spend the nine coins.

Arkad continued with his teaching. He could certainly see the two men starting to think as he was explaining. The following information is far more valuable than just "The Richest Man in Babylon Summary".

As you start doing the first concept, you'll be accumulating money. Now what you have to realize is this: money is a commodity that generates profit just like any other thing. If you had a house, you wouldn't let it sit for thirty years and let it rot and not rent it out. And rotting is what's going to happen to your money when it's in a bank account with inflation. But with the house, it comes to you quickly. "Of course, we need to rent it out." Well, the same thing goes for the money. So let's do a little bit of calculation. If you don't follow the first concept, what's going to happen is after thirty years, you're going to have zero dollars in your account. You didn't put away that one coin; now you have nothing. If you do follow the first concept, here's what's going to happen. If you have a salary of $3000, the one coin is $300, so in thirty years, you're going to have over $100,000 in your bank account. Now here's what happens when you realize that your money can generate you profit! And the biggest problem in understanding this is the interest rate. You look at the 7%, and you think of $300. What's 7% of $300? Oh, not even $30. And it's like, it's not even worth it, but here's where the compounding effect comes into play. So with 7% interest, you would have over $300,000 instead of $100,000. That's three times the amount. With 10% interest, notice only three percentage point change, you will have over $600,000. That's six times as much.

Arkad: If you do manage to save a significant sum of shekels which are engaged in a profitable investment, You will create a passive income that keeps flowing. And when one has achieved a fat purse, one must not be fooled by his increase in income.

Many of people who got rich began wasting their treasure in less valuable investments "Oh cool the business is doing well" "Time to buy a new car! A new house! Yaay" Congratulations you are naive.

Do not eat the children of your savings, make them work for you. And make their children's children work for you until your fat purse is stable. No matter how much you spend.

As Algamish the master of Arkad once said to him: "Your money is your slave Arkad," You have to make it work for you. First, one must create an army of golden slaves and then only spend according to their wish.

Arkad: The story ends here my fellow friends. Now go! Go seek out your own knowledge and experience.

As the two men were about to leave Arkad’s mansion, they were thankful to him and commented that he was a very fortunate man. But how can they accuse someone of luck when they spent their whole life failing to learn. It is indeed a long journey. Risky so to say but what choice do we have? It is better to get lost in the journey towards freedom than to be imprisoned for the rest of our life.

Message from "The Richest Man in Babylon Review"-

I decided to myself that I would claim my share of the good things in life. I would not be one of those people who stand afar off enviously watching others enjoy -Arkad, "The Richest Man in Babylon".

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