Richest+Man+in+Babylon

//The Richest Man in Babylon// by George S. Clason
Ally Hall Mrs. Moeller-3rd Period AP Macroeconomics Book Review __ The Richest Man in Babylon __, a novel comprised of several of the works of the late George S. Clason, provides all the information one could hope to know about how to achieve financial success. Through a series of parables or “Babylonian parables” if you will (since the novel focuses on that region), Clason illustrates the keys to attaining personal wealth. The stories, although told in Bible-like language, contain characters which can be easily compared to today’s Average Joe. However, the book gains its title from one of the parables (a chapter in the novel), which Clason published separately in 1926: The Richest Man in Babylon. Babylon was the richest city of ancient times. Clason used Babylon as the example in his works because he recognized that its people understood three important things: (1) How to get money, (2) how to save money, (3) and how to make more of it. The first chapter of the novel entitled “The Man who Desired Gold,” much as its title indicates is a story of the man who desired gold, Bansir, the chariot maker. Bansir was ambitious and clueless; wanting to make money and become rich, yet having no idea how to get there. His friend Kobbi, the musician, found himself in the same predicament. They recognized that they had little in the land of plenty and felt themselves a little better off than the slaves. They realized that their goal in life had not been to achieve financial success, but to succeed at their occupations. Since becoming rich had not been their main goal, they had not attained wealth. Soon enough, two found that the first step to financial success is to **ask advice from someone who has already attained it**. So they went to Arkad, the richest man in Babylon for guidance, in an effort to learn the secrets to being prosperous. After speaking with Arkad, Kobbi and Bansir heard Arkad’s story of how he attained his riches. Clason presents the first principle to becoming prosperous: **A part of all you earn is yours to keep**. In the chapter, “The Richest Man in Babylon,” the author also introduces the importance of (1) living upon less than you can earn, (2) seeking advice from competent individuals, and (3) making gold work for you. Clason goes on to discuss **the seven cures for a lean purse**. The first cure is to start thy purse to fattening; taking one coin out of every ten coins one receives. The nine left over coins are to be spent however necessary or unnecessary, but the one coin taken out must be set aside. The idea is that eventually that the coins set aside will multiply or “fatten.” The second cure Clason mentions is control thy expenditures, in other words, set a budget for those expenses both necessary and unnecessary, and be sure to not spend over 90% of your total earnings. The third cure is to make thy gold multiply. Find a stable source of income so that your money set aside may continue to multiply. The fourth cure is to guard thy treasures from loss. As Clason mentions, “The first sound principle of investment is security for thy principal” (34). He advises to invest where there is little risk, take the advice of wise men when investing, and let their wisdom be your guide. Continuing on, Clason’s fifth cure is to make of thy dwelling a profitable investment. Simply put, this principle can be understood to mean, “Own your own home” (36). Then, the sixth cure for a lean purse is to insure a future income. This cure emphasizes the need to prepare for the future by providing in advance for the needs of old age and the protection of one’s family. The seventh and final cure for a lean purse is to increase thy ability to earn. In order to accomplish anything, you must have a strong desire to do so. In order to achieve this last cure one must study to become wiser and to become more skillful, he or she must practice his or her own skills, and he or she must respect his or her own self” (42). From here, Clason continues to relay other important principles of financial success. He carries on the parable with Arkad, the richest man in Babylon. Arkad discusses with the men some of the opportunities that have come and gone. They come to the conclusion that, “Men of action are favored by the goddess of good luck” (58). The moral of this parable is that **good luck comes to the man who accepts opportunity**. Then the author goes on to tell the story Nomasir, Arkad’s son who against tradition, was forced to prove himself capable of increasing his gold before being granted his father’s estate. The money that Nomasir initially acquired was spent foolishly. However, he soon discovered that wisdom is the key to wealth, and he committed to memory **the five laws of gold** which his father had sent with him before he left. Nomasir put these five laws into practice in his life, he surrounded himself with good company, and he became a rich man. These five laws are as follows: (1) Gold comes to the person who puts aside 1/10th of his or her earnings for future use, (2) gold multiplies for the man who accepts opportunity, (3) gold remains with the individual who wisely invests and handles it, (4) gold goes away from the man who foolishly invests it in businesses or purposes that he is unfamiliar with, and (5) gold goes away from the man who entrusts it to schemers or the inexperienced. In another parable, Clason tells the story of the gold lender of Babylon. Rodan, a spearmaker in Babylon went to ask the advice of Mathon, the gold lender. Rodan has just received 50 pieces of gold from the King he wants advice on what to do with it. His brother-in-law has requested a share of the money in his merchant endeavors. However, Mathon advises Rodan to test his sister’s husband’s motives with the money, and he tells him, “**Better a little caution than a great regret**” (88). Clason shares a few more parables along with more sound financial principles. From a parable about the walls of Babylon, Clason reveals that,”**We cannot afford to be without adequate protection**” (93). In another parable he restates the old adage of where there’s a will, there’s a way by saying, “**Where the determination is, the way can be found**” (105). Later in the novel, Clason provides a modern day (as it was when it was published) testimony of putting some of the principles into action. He tells the story of an archeology professor who has used the financial principles, which were described on a clay tablet sent into his university, to get out of debt. Then, in the final parable, Clason tells the story of Sharru Nada, the best friend to the great Auru Gula. Sharru Nada was riding in a cart with the spoiled grandson of Auru Gula who was shocked to hear of the struggles of the old man’s youth. Sharru Nada shared how he was a slave, but he worked hard and eventually became a free man with the help of Auru Gula. The moral of this parable is that work can prove to be one’s best friend. **Hard work is the key to success.** In the final chapter of __The Richest Man in Babylon__, Clason provides some historical information as to the ancient city of Babylon and its people. Some of the discoveries of Babylon include clay tablets engraved with legends, poetry, and history, canals, and jewelry. Clason asserts that the Babylonians were the first investors of money as a means of exchange, and they were the first mathematicians, financiers, engineers, and astronomers. They were the also the first to have a written language. The Babylonians’ brilliance endures, their wisdom endures, and the same financial principles which made their society the richest in ancient times hold true today as a testament to their legacy.