The Richest Man in Babylon Summary: The 7 Ancient Rules That Still Work

Why did two skilled craftsmen work their whole lives and end up broke? This is The Richest Man in Babylon by George S. Clason.

The Classic

The rules of money are ancient, simple, and they never change. Two very unhappy men. Bansir built chariots all day.

The Problem

Every coin he earned was gone by month's end. His friend Kobbi was a musician. Same problem.

Money came. Money went.

The Mentor

They went to see the richest man in Babylon. He used to be just as broke as they were. The first of the seven cures. Every time you earn a coin, take ten percent off the top.

Cure #1

Put it somewhere you cannot touch. Bansir objected. That is my rent money. But here is the truth.

The Flip

What most people get to keep is not what they earn. It is what they do not spend. Bansir saved his ten percent. Within a year, he had enough to start lending.

Cure #3

He learned to make his gold work for him. The second cure. Control your expenses. Live on the rest.

Cure #4 + The Five Laws

Your wants will always expand to fill your income. The third. Make your gold multiply.

Each coin is a worker. Put it to work.

The Proof

It earns more coins. Those coins work too. The fourth.

Guard your treasures from loss. Invest in what you understand.

The Core Quote

Hot tips and sure things are how fortunes vanish. The fifth. Own your home.

It is not an asset in this book. It is the foundation that frees you from rent.

Take Action

The sixth. Secure your future. You cannot work forever. Build income that keeps coming when you are old.

The Habit

The seventh. Increase your ability to earn. Learn skills.

Become more valuable. Your income is limited only by what you know.

Summary

That is the whole system. Pay yourself first. Ten percent.

Live on the rest. Make money work. Protect it.