Book Summary Preview : The Richest Man in Babylon

The Big Idea
This “book of cures for lean purses” is a guide to financial understanding. It offers insights that will aid you acquire money, keep money and make your surpluses earn more money. In order to show this, the book takes us back to Babylon, the cradle in which was nurtured the basic principles of finance now recognized and used the world over. Babylon became the wealthiest city of the ancient world because its citizens were the richest people of their time. They appreciated the value of money. They practiced sound financial principles in acquiring money, keeping money and making their money earn more money.

The Riches of Babylon
In the pages of history, there lives no city more glamorous than Babylon. Its very name conjures visions of wealth and splendor. Its treasures of gold and jewels were fabulous. One naturally pictures such a wealthy city as located in a suitable setting of tropical luxury surrounded by rich natural resources of forests and mines. Such was not the case. It was located beside the Euphrates River, in a flat, arid valley. Babylon is an outstanding example of man’s ability to achieve great objectives, using whatever available means at his disposal. All of the resources supporting this large city were man-developed. All of its riches were man-made.

Seven Cures for a Lean Purse
Babylon”s riches, of course, did not happen overnight. Its wealth was the result of the wisdom of its people. They first learned how to become wealthy and practiced what they knew. Here are the seven steps or “cures” to ensure a wealthier life:

Step 1: Start Thy Purse to Fattening
For each ten coins you earn, spend only nine

Step 2: Control Thy Expenditures
Budget your expenses that you may have coins to pay for your necessities, pay for your enjoyments and gratify your worthwhile desires without spending more than nine-tenths of your earnings.

Step 3: Make Thy Gold Multiply
Put each coin to labor so that it may reproduce its kind.

Step 4: Guard Thy Treasures from Loss
Guard your treasures from loss by investing only where the principal is safe, where it may be reclaimed if you desire so, and where you will not fail to collect a fair rental.

Step 5: Make of Thy Dwelling a Profitable Investment
Own your own home.

Step 6: Insure a Future Income
Provide in advance for the needs of your growing age and the needs of your family.

Step 7: Increase Thy Ability to Earn
Cultivate your own powers, study and become wiser, become more skillful, and respect yourself.

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