How a Poor Man Became the Richest Person in the World’s Wealthiest City
Over 4,000 years ago, a city called Babylon stood as the richest place on Earth. Its streets were filled with gold, successful businesses, and wealthy families who passed their fortunes down through generations. But Babylon didn’t start wealthy. The people who lived there discovered simple money rules that transformed their lives from poverty to prosperity.
In 1926, a writer named George S. Clason wrote a book called The Richest Man in Babylon that shared these ancient money secrets through stories. The book remains popular almost 100 years later because the advice still works today. Whether you earned coins in ancient Babylon or earn dollars today, these money principles create wealth.
The Story of Arkad: From Poor to Rich
The main character in the book is named Arkad. He started life as a poor scribe, which means he wrote documents for other people and earned very little money. Arkad looked around and saw some people getting richer while others stayed poor their whole lives. He wanted to understand why.
Arkad asked a wealthy man to teach him the secrets of money. The rich man agreed and shared one simple idea that changed everything: “A part of all you earn is yours to keep.” This sounds obvious, but Arkad realized he had been giving away every penny he earned to pay for food, rent, and other expenses. He never kept anything for himself.
From that day forward, Arkad saved at least 10% of every payment he received before spending money on anything else. This one habit started his journey to becoming the richest man in Babylon.
The Seven Money Rules That Build Wealth
Arkad eventually became so wealthy that people came from everywhere to learn his secrets. He taught seven rules he called “cures for a lean purse.” These rules work just as well today as they did thousands of years ago.
Rule 1: Save at Least 10% of Everything You Earn
The first rule is simple but powerful: before you pay bills, buy food, or spend money on anything else, save at least 10% of what you earn. This is called “paying yourself first.”
Most people do the opposite. They earn money, pay all their bills, buy things they want, and hope something is left over to save. Usually nothing is left. By saving first, you make sure you always keep part of what you earn.
Start small if you need to. Even saving 5% is better than saving nothing. The habit matters more than the amount when you start. Once saving becomes automatic, you can increase the percentage.
Rule 2: Control Your Spending
Arkad taught that your expenses will always grow to match your income unless you stop them. When people get a raise, they usually spend more money instead of saving more. They move to a bigger apartment, buy a nicer car, or eat at expensive restaurants.
The secret is understanding the difference between needs and wants. You need food, but you don’t need to eat at restaurants every day. You need transportation, but you don’t need a brand new luxury car. You need a place to live, but you don’t need the most expensive apartment in town.
Make a list of everything you spend money on. Look at each item and ask yourself: “Do I really need this, or do I just want it?” You’ll be surprised how much money you waste on things that don’t matter.
Rule 3: Make Your Money Multiply
Saving money is just the first step. The real wealth comes when you make your saved money work for you. Arkad said every dollar you save is like a worker who can earn more money for you.
This is called investing. When you invest money wisely, it grows without you doing extra work. The money you invest earns more money, and that new money also earns money. This creates a snowball effect that builds wealth over time.
For example, if you save $100 per month and invest it where it grows 8% per year, after 30 years you’ll have over $135,000. That’s the power of making your money multiply.
Rule 4: Protect Your Money from Loss
Not all investments are good. Arkad warned strongly against get-rich-quick schemes and risky investments. Many people lose everything because they chase big promises instead of steady growth.
Before investing money anywhere, do your research. Talk to experts who have successfully invested in that area. If an investment promises huge returns with no risk, it’s probably a scam.
The goal isn’t to get rich overnight. The goal is to build wealth slowly and safely over many years. Protect your money like you would protect your family.
Rule 5: Own Your Home
Arkad recommended owning the place where you live instead of renting forever. When you pay rent, that money goes to make your landlord richer. When you pay a mortgage, you’re buying something that belongs to you.
Owning a home provides stability. You can’t be forced to move when a landlord decides to sell or raise the rent. Your home also typically increases in value over time, which builds your wealth.
Start saving for a down payment if you don’t own a home yet. Even a small home you own is better than a large home you rent.
Rule 6: Plan for Retirement
Arkad taught that everyone gets old eventually. When you can’t work anymore, you need money to live on. Don’t wait until you’re old to think about this.
Start saving for retirement as early as possible. The younger you start, the less you need to save each month because your money has more time to grow. Someone who starts saving at age 25 needs to save much less per month than someone who starts at age 45.
Also think about what happens to your family if you die. Do they have enough money to survive without you? Life insurance and proper planning protect the people you love.
Rule 7: Increase Your Ability to Earn
The final rule focuses on earning more money. The more you earn, the more you can save and invest. But earning more requires improving your skills.
Take classes, read books, and learn new skills that make you more valuable. If you’re a good worker, become a great worker. If you have one skill, develop three skills. Look for ways to solve bigger problems or serve more customers.
People who keep learning keep earning more throughout their lives. People who stop learning usually earn the same amount for decades.
The Five Laws of Gold
Besides the seven rules, Arkad also taught five laws about protecting and growing wealth once you have it. These laws are especially important for people who inherit money or suddenly come into a large amount.
Law 1: Gold Comes to People Who Save
Money flows to people who have the habit of saving at least 10% of what they earn. This habit must continue even after you become wealthy. Rich families stay rich because they never stop saving.
Law 2: Money Works for Wise Owners
Money grows when you invest it in smart ways. Your investments should make more money, and that new money should also be invested. This creates multiple streams of income that keep growing.
Law 3: Money Stays with Careful Owners
Money stays with people who get advice from experts before investing. Don’t invest in things you don’t understand. Don’t invest based on tips from friends who aren’t wealthy themselves.
Law 4: Money Leaves People Who Invest in Things They Don’t Understand
Money disappears when you invest in businesses or opportunities you don’t know anything about. Stay with investments you understand. Learn before you invest, don’t invest and hope to learn later.
Law 5: Money Runs from Impossible Schemes
Money flies away from people who chase get-rich-quick schemes or follow scammers. If something sounds too good to be true, it probably is. Slow and steady wealth building beats chasing impossible dreams.
Why This Ancient Advice Still Works Today
These principles worked in ancient Babylon and they work today because human nature hasn’t changed. People still struggle with spending too much, saving too little, and making bad investment decisions.
The book uses simple stories to teach complex ideas. Anyone can understand these principles, regardless of education level or current financial situation. You don’t need to be a genius or have a high income to build wealth. You just need to follow these proven rules consistently.
Taking Action Today
Reading about money principles doesn’t build wealth. Taking action builds wealth. Start today with these simple steps:
- First, calculate 10% of your income and commit to saving that amount from every paycheck before paying any bills. Set up automatic transfers so the money goes to savings before you can spend it.
- Second, write down everything you spend money on for one month. Look at your list and identify expenses you can reduce or eliminate. Use that saved money to increase your savings.
- Third, educate yourself about investing. Read books, take classes, or talk to financial advisors. Start with safe, simple investments and learn as you grow.
- Fourth, make a plan to own your home if you don’t already. Research what you need for a down payment and start saving specifically for that goal.
- Fifth, open a retirement account if you don’t have one. Even small monthly contributions add up to large amounts over decades.
- Finally, invest in yourself. Learn new skills that make you more valuable in your job or business. The more you know, the more you can earn.
The Real Secret
The richest man in Babylon learned that wealth isn’t about how much you earn. It’s about what you do with what you earn. A person earning $30,000 per year who saves and invests 10% will become wealthier than a person earning $100,000 per year who saves nothing.
These ancient principles are simple but not easy. They require discipline, patience, and consistent action. But they work for anyone willing to follow them.
Start today. Save 10% of your next paycheck. Make that first step toward becoming the richest person in your own Babylon.
