Book Review: The Richest Man in Babylon

I just finished reading the classic book, The Richest Man in Babylon: Now Revised and Updated for the 21st Century by George S. Clason. This personal finance book has sold millions of copies since it’s original release in 1926. It’s advise is still as relevant today as it was in 1926.

Unlike many dry and boring finance books, George Clason wrote The Richest Man as a parable with characters from ancient Babylon. The Richest Man in Babylon tells the Seven Simple Rules of Wealth. I love the simplicity of the rules.

Seven Rules of Wealth

1. Start thy purse to fattening
2. Control thy expenditures
3. Make thy gold multiply
4. Guard thy treasures from loss
5. Make of thy dwelling a profitable investment
6. Insure a future income
7. Increase thy ability to earn

Here’s some of the highlights of The Richest Man in Babylon
• Saving 10% of what you earn therefore fattening thy purse
• “All men are burdened with more desires than they can gratify.” As we grow the ability to earn, so does our desire to spend if we do not control thy expenditures.
• Invest 10% so that it works for you and make thy gold multiply
• Beware of get rich quick schemes. If it seems too good to be true, it probably is. Guard thy treasures!
• Purchase a home so that you are not paying rent forever.
• Think long term and build a passive income for when you grow old. Insure a future income.
• Constantly increase your value at your current occupation. Your employer will recognize your efforts and increase your salary. If they do not, look for a new employer. Therefore, you increase thy ability to earn.

The Richest Man in Babylon was enjoyable reading and offers some great time tested advice from ancient Babylon. I found the chapter on the real tablets from Babylon that researchers discovered very interesting. The tablets talk about a man’s journey to get out of debt. He lays out a plan for getting out of debt and the final tablet is about his day of debt liberation.