Why This 1926 Book Can Still Make You Rich in 2024

hello everyone today we're going to be talking about the personal finance classic the richest man in Babylon by George S clayon this little book published way back in 1926 dispenses Timeless Financial wisdom through a collection of Parables set in the ancient city of Babylon over the past Century it has inspired Millions to get their financial houses in order and set off on the road to wealth the book begins with a story that allegedly took place over 80 years ago in 1934 an archaeology professor at the University of Nottingham in England received five clay tablets from

an excavation site in Babylon when he deciphered the Kuni for writing on them he was surprised to find they didn't contain dry historical records but rather the emotional firsthand account of a man named dabasir who had been a slave in Babylon on dabasir recounted in detail how he got out of debt and even became wealthy as it happened the professor and his wife were deep in debt themselves at the time they decided to try out dair's method and miraculously it worked they were able to pay off what they owed by following the ancient principles pretty

amazing right well it turns out dair's story comes straight from the pages of the rich richest man in Babylon the book contains many other Tales of men who learned the secrets of wealth building in this ancient city we'll get into those Parables shortly but first a bit about the author George S Classen was a successful entrepreneur in the early 20th century he founded the Clon map company of Denver Colorado and published the first road atlas of the United States and Canada in 1926 he issued the first of a famous series of pamphlets on Thrift and

financial success using Parables set in ancient Babylon Banks and insurance companies jumped on the bandwagon and soon Millions were reading them the most popular of these pamphlets were compiled into a book and published under the title the richest man in Babylon which has become an inspirational classic clayon himself came to be seen as a pioneer of modern finan Cal self-help so what exactly does this book from a bygone era have to teach us about money management that's still relevant today surprisingly quite a lot the basic principles haven't changed clayon sums it up neatly through the

tales of some of babylon's wealthiest inhabitants hello every day here we dive into a book that's either a bestseller or something you probably ain't heard about before but is mad interesting so if you haven't subscribed make sure to hit that button and join the Squad part one the art of saving when it comes to saving money you might think what's there to discuss obviously if you make more you can save more but if your income is limited saving is going to crimp your lifestyle right not necessarily according to our Babylonian Financial gurus they repeatedly emphasize

one key point if you set aside just 10% of your income you'll be well on your way to Growing wealthy without sacrificing your quality of life this is beautifully illustrated by the tale of Arad a scribe who started with nothing but through determination and discipline became the richest man in Babylon Arad story is very relatable like many young people people starting out he worked hard for meager pay that was eaten up by living expenses as fast as he earned it despite his modest means Arad always clung to the belief that he could become wealthy if

he just found the right method that's when a generous rich man named Al gamish took him under his wing and shared this powerful advice start saving 10% of your income and you'll be on the path to prosperity when the young scribe expressed doubt Al gamish insisted that this simple Act was all it took to transform him from a humble Shepherd into a massively wealthy lender at first Arad was skeptical with an income that small wouldn't he have to drastically tighten his belt and live on the edge of starvation to have anything left over to save

but the wise algam quickly disabused him of that limiting belief Lea and gave him a radically different way of looking at money the rich man explained that whatever Arad saved wasn't just going to sit idle instead each copper coin would become his employee working tirelessly to earn more money for him in Alisha's words every coin you save is a slave to work for you every copper it earns is its child that also can earn for you in other words it's not just about socking money away the real key is to make your money multiply by

putting it to work making more money as the original amount grows so does the interest or return it generates creating a Snowball Effect Arad wasn't fully convinced but he decided to put alam's advice into practice and see what happened he made a PCT with himself to stash away 10% of his earnings come what May and a funny thing occurred as the months went by he found he didn't even notice a difference in his lifestyle after skimming that 10% off the top sure he was tempted at times to splurge on some eye-catching item as he strolled

through the bazaars of Babylon but the thought that he was building up a nest egg strengthened his resolve soon Arad started investing his savings to make even more money after some initial missteps he began to see his wealth steadily grow under alam's continued mentorship the rich man was so impressed by his protege's progress that he made Arad a partner and had him manage his vast Estates when Al gamish passed away Arad inherited a good chunk of his fortune at that point Arad could have simply relaxed and enjoyed a life of leisure but he continued to

work work hard and invest astutely eventually becoming the wealthiest man in Babylon the moral of arad's story is clear Building Wealth doesn't require a huge income initially or a Spartan existence it starts with the simple but profound Act of consistently saving 10% of what you earn and then making that money work for you the same method that propelled Arad to the Pinnacle of prosperity in ancient Babylon still works wonders in the modern world after all that's how the British professor and his wife managed to pay down their debt when they emulated the Earth while slave

dabasir example when Arad reached the ripe old age of 70 and could have comfortably rested on his Laurels an intriguing situation arose the king of Babylon recognized that many of his subjects had fallen on Hard Times the kingdom had recently concluded a massive project of building walls roads and palaces that brought a lot of money into the economy but now that the work was done citizens struggled to make ends meet ever the wise ruler the king decided the best way to boost his people's fortunes was to help them help themselves he selected 100 promising young

men to learn the ways of wealth from the master himself Arad and what was the very first lesson the rich man imparted to these wouldbe millionaires you guessed it save 10% of your income our card gave actionable examples like telling a young egg Merchant to put 10 eggs from each morning's inventory into a separate basket and take out only nine for personal use by following this practice Faithfully the basket would eventually overflow he also advised the lad to control his expenditures so he could live comfortably on 90% of his earnings lo and behold the youth's

purses began to fatten satisfyingly as they adhered to arad's Method this was how Babylon became known as a city of enormous affluence its citizens industriously worked to better their lot every person born there knew that the most pressing Duty was to learn how to accumulate riches you see growing wealth is an exact science not a matter of luck or circumstance but the underlying tenets are so basic people often Overlook them to their detriment the book emphasizes again and again that saving is a habit anyone can form it doesn't matter if you're born into humble circumstances

with enough discipline and determination you can achieve Financial Security by putting aside a portion of what you earn no matter how small and making it your servant of course this is easier said than done we all have an endless array of Temptations vying for our money but clayon argues that a lot of these expenses are really once disguised as needs with a bit of introspection and budgeting nearly everyone can find some fat to trim it's all about differentiating between necessary costs and frivol desas remember how Professor discovered those ancient clay tablets that inspired him to

pay off his debt well that story comes directly from the richest man in Babylon too the tablets were purportedly written by dabasir who Chronicles his Misadventures and how he eventually found his way to Financial Freedom dabasir was born a free man in Babylon but his imprudent ways landed him deep in debt he tried to run from his trouble only to end up a slave in Syria fortunately a sympathetic Master allowed him to earn his way to Liberation and he returned to his native city with a resolve to Vanquish debt once and for all and how

did dabasir go about it by following the exact same strategy as Arad he vowed to set aside a tenth of his earnings every month for repayment this was no easy feat as his family had to scrimp and scr to get by on 70% of dabas here's pay with 20% allocated to debt reduction but bit by bit davasi chipped away at his obligation all while investing his meager savings into money-making Ventures you see dubas had a special talent an in-depth knowledge of camels so he used his modest Nest Egg to shrewdly buy high quality animals that

he could later sell at a TIY profit slowly but surely daasa won his war against debt and redeemed himself financially he found that sticking to a repayment plan was Far easier than living perpetually under the shadow of his creditors so you see the notion of growing wealth by Saving just 10% of your income may seem almost too simplistic but that's precisely what makes it so powerful the results speak for themselves eles and best of all this strategy can be implemented by anyone regardless of background or means of course saving is only one part of the

equation accumulating a fortune also requires putting your money to work through smart investing and that's exactly what the second half of the richest man in Babylon is all about so don't touch that dial we'll be right back to delve into the Babylonian perspective on getting your gold to make more gold after a word from our sponsors part two investing wisely welcome back before the break we were talking about the Timeless money management principles laid out in George S Clay's classic book the richest man in Babylon we covered the importance of saving at least 10% of

your income now we're going to explore the other crucial skill you need to achieve lasting wealth investing your hard-earned nest egg to make it grow over time there are countless different investment vehicles and strategies out there but according to our Babylonian Financial Role Models one principle rules them all when it comes to multiplying your money protect your principle at all costs in other words never lose sight of risk in pursuit of higher returns this is a truth Arad learned the hard way when he first started investing the money he saved remember arad's Mentor Al gamish

had emphasized that he needed to put his coins to work to get them to make even more coins that sounds well and good but how exactly do you go about turning copper into gold well Arad thought he found a Surefire shortcut to instant riches when a brick layer he knew presented an enticing proposal the fellow was an avid traveler who had met some Phoenician Traders on his latest Voyage they offered to sell him a stash of rare Jewels at a bargain price that he could later resell in Babylon for a hefty profit the only hitch

was that the brick layer didn't have enough cash on hand to snap up the gems that's where Arad came in if he fronted the funds for the initial purchase the two men would split the proceeds when the jewels were sold it seemed like a no-brainer a 50% stake in a lucrative deal without having to lift a finger how could Arad resist the chance to multiply his savings with so little effort alas the best laid plans of mice and men often go arry the jewels turned out to be nothing more than worthless glass bobles the brick

layer got Hoodwinked and in turn his naive ended up costing poor Arad his entire nest egg in one Fell Swoop when Alish heard about this debacle he sat the young man down for a serious chat about vetting advice before acting on it see Arad made the rookie mistake of taking Financial counsel from someone with zero expertise in or knowledge of the Venture AT hand would you seriously trust a brick Claire's assessment of gemstone values of course not that would be as absurd as letting your Barber perform open heart surgery on you yet so many people

fall victim to money-making schemes hawked by dubiously qualified individuals all the time if you don't know what you're doing you're almost guaranteed to lose your shirt thankfully Arad learned from his folly after rebuilding his savings he made a much savier a second investment by staking a bronze Shield maker who needed Capital to buy metal since the Craftsman had a solid reputation and track record of strong sales it was a reasonably safe bet sure enough Arad received a Dependable quarterly dividend on his seed money with this first taste of legitimate gains he was on his way

to amassing a fortune the lesson wasn't lost on the 100 youths selected by the the king to study wealth building at arad's feet they grasped that growing money steadily was the way to go and the key to that was relying on advice from those with Bonafide knowledge and expertise rather than slick-talking charlatans before passing on his hardw one wisdom to the masses arad's first and most important student was his own son Nasir unlike many rich kids today who get to kick back and enjoy the family fortune without lifting a finger nasia had to make his

own way in the world and prove his financial metal before inheriting his father's estate when nomia came of age akad sent him off with a bag of gold coins to cover initial expenses along with a tablet inscribed with what he called the Five Laws of gold while these laws sound simple in theory they require dedication and willpower to adhere to the majority boiled down to Common Sense prescriptions like seeking out expert advice staying disciplined warding off Temptation and steering clear of swindlers above all Arad counseled his son to protect his principal just as the king's

Protegé later learned Arad gave nasia 10 years to multiply the coins entrusted to him by putting the Five Laws into practice only after the Young man demonstrated his ability to grow wealth would Arad bequeath his Holdings to nasia a decade later nasia returned to Babylon as scheduled on the occasion of his homecoming Arad threw a lavish banquet where nasia regaled family and friends with Tales of his exploits unsurprisingly the first town he arrived in was full of conniving Hustlers who swiftly relieved the naive lad of every last copper in his Coffer destitute and despondent NASA

contemplated giving up but then he remembered the tablet Arad had bestowed on him determined to redeem himself NASA found Works supervising slaves building a new city wall the gig didn't pay much but it gave him a chance to start implementing his father's Five Laws a prime opportunity soon presented itself when nom discovered his boss who he'd befriended was looking to Corner the market on bronze once the wall was finished the plan was to get in early by obtaining the metal that would be in high demand for fashioning the city gates with noma's Insider knowledge and

his master's backing the pair organized an expedition to procure the necessary ore and alloy their foresight paid off in Spades when the time came the king paid dollar for the exclusive rights to the stash nasia and his partner had amassed the Tidy profit nasia earned from this initial coup formed the basis for his future prosperity and it perfectly illustrates the power of coupling reliable council with bold but sensible action so far we've focused on the potential pitfalls of investing from a big picture perspective but the book also gets into brass tax by highlighting specific spe

ific types of opportunities to pursue or avoid take real estate for example Arad sag points out that land is a finite resource that tends to appreciate over time as long as you have a plan for generating cash flow buying property can form the Cornerstone of a robust fortune on the flip side Arad cautions against sinking money into trendy trinkets or shiny bobles that generate no me meaningful return it sounds obvious but Untold masses have been seduced into frittering away their Futures on ultimately worthless knick-knacks the key is separating your wants from your needs and allocating

funds accordingly of course even the most disciplined Savers and shrewd investors can fall victim to unexpected circumstances outside their control the book illustrates this by sharing the tale of mathan another successful Babylonian lender who narrowly avoided catastrophe one evening mathon received an impromptu visit from a distraught friend seeking advice the man was a spearm maker who had won the king's favor and been rewarded with a prize of 50 gold pieces an unprecedented windfall for the humble Craftsman but instead of celebrating his Good Fortune he was racked with anxiety about how to manage the money you

see the spearm Maker's sister had a husband who fancied himself a merchant but his track record was spotty at best the sister implored her brother to loan his bounty to her hubby as seed capital for a new Venture she assured him the budding businessman would repay the amount with interest while the spearm maker wanted to help his kin he was understandably hesitant to risk his Newfound Nest Egg to guide his decision mathan recounted the Fable of a donkey and an ox in the tale the hardworking Ox complained bitterly To His equin companion about the unfairness

of their respective Lots in life while the ox toiled in the fields from sun up to sun down the donkey lived a life of relative Leisure with plenty of time to rest and graze the Wy donkey suggested a rose where the ox would play sick to get out of work the scheme seemed to succeed at first but it backfired when the farmer Enlisted the donkey to pull the plow in the ox's stead the moral of the story be careful about shouldering someone else's burden or you may end up getting burned when extending loans mathon always

protected his downside by requiring collateral to secure repayment he also restricted lending to those whose existing assets exceeded the value of the loan that way even if the borrower defaulted mathon could recoup most of his principle The spearm Maker took the lesson to heart and kept his windfall out of his brother-in-law's hairbrained scheme and sure enough the merchants Venture soon went belly up just as mathon predicted had the spearm maker not heeded the lender's advice his own finances would have sunk along with the business stories like this underscore why conservative money management is essential to

building durable wealth but the book is quick to point out that Prudence shouldn't be confused with paralysis there's a fine line between caution and stagnation yes you need to perform proper due diligence before investing but once you've done your homework you must be decisive and pull the trigger when Opportunity Knocks to Str the Don side of excessive hiton the richest man in babyon presents the cautionary account of an older Merchant who lived to regret his failure to act as a newly Weir the Merchant's faither advised him to develop a large tract of unused land just

outside the city walls the parcel was situated above the level of the canal making irrigation tricky but one of the father's friends devised an ambitious plan to install three enormous water wheels to raise the flow from the canal to the fields once fertile the land could be subdivided and sold off for a tidy profit alas the merchant waffled and waited too long to get in on the action why he was more interested in frittering away his funds on flashy fashion by the time he recognized the wisdom of his father's counsil the window had closed closed

the development deal went through without him generating even more lucrative returns than anticipated a similar fate befell a livestock Trader who passed up the chance of a lifetime for want of nerve after an arduous 10-day buying trip the dejected dealer had come up empty-handed to make matters worse he arrived back in Babylon after dark when the city Gates were locked forced to overnight outside the walls he bumped into another Shepherd in the same predicament the second man was in a bind and made the trader an offer he should have refused one of his herdsmen had

arrived with a flock of sheep just before the gates closed with no way to pen the animals and a sick wife to tend at home he was desperate to unload his stock then and there the trader sized up the situation and quickly appraised the flock top quality based on the tamber of their bleating the shepherd also quoted an extremely reasonable price for the lot but because the transaction would have to take place in the pitch dark of night the trader was nervous about verifying the exact headcount he insisted on waiting until dawn to take a

proper tally before agreeing to anything that delay proved fatal unbeknownst to both men the city was under imminent attack from an enemy Force Come Morning the government had authorized a group of merchants to secure additional Provisions at triple Theo rate before The Siege cut off supply lines they happily met the shepherd's revised asking price by the time the trader awoke his prize had been snatched from under his nose and the chance to turn a handsome profet had evaporated if only he had trusted his instincts in inad of dithering when in doubt he who hesitates is

lost and there you have it my friends the essence of the Eternal truths packed into this unassuming little volume the richest man in Babylon may have been written nearly a century ago but its insights have only become more relevant with time the twin pillars of wealth building remain constant one save at least 10% of your income to form a a foundation two invest those savings strategically for optimal growth executing these two simple directives can put almost anyone on the path to Financial Freedom but simple doesn't mean easy it takes awareness and restraint to live below

your means so you can pay yourself first it takes research and fortitude to stay the course in the face of Market volatility above all all it takes wisdom to know whom to trust and when to tune out the noise but with a little self-discipline and a lot of common sense there's no reason why you can't apply these ancient principles to achieve your definition of success in the modern world these are the exact same steps that lifted our Babylonian protagonists from poverty to prominence and they are still changing the lives of readers across the globe to

this very day so what are you waiting for go forth and plant the seeds of your Prosperity confident in the knowledge that the fundamentals of personal finance are immutable and accessible to all let the inspiring examples of Arad Alish mathon and Nasir be your guides on the journey feel free to put your own spin on their - tested techniques even if you start small you'll be amazed how quickly your fortune will begin to Sprout and flourish before you know it you'll have a money tree of your own with deep roots and innumerable branches bearing fruit

and with any luck you just might find yourself in the running for the title of the richest person in your town here thank you for joining me on this stroll down the historical highways and byways of hitting the financial jackpot if you like this video be sure to smash that like button and share it with a friend who could benefit from a Babylonian style attitude adjustment and don't forget to subscribe to the channel so you never miss my musings on all things net worth related