Read, execute, profit: ‘The Richest Man in Babylon’
It’s very difficult to build wealth unless you develop the habit of saving. And to do that, you have to “pay yourself first.”
That’s one lesson of “The Richest Man In Babylon,” a book of parables written by George S. Clason, set in the ancient city of Babylon — and still relevant to entrepreneurs today.
The book follows the journey of a group of friends who set out to discover the secret of wealth by asking their old companion, Arkad, who has since become the richest man in town.
In this passage, Arkad imparts a lesson from his old mentor, a money lender named Algamish:
“I thought about what [Algamish] had said to me, and it seemed reasonable. So I decided that I would try it. Each time I was paid, I took one from each ten pieces of copper and hid it away. And strange as it may seem, I was no shorter of funds than before. I noticed little difference as I managed to get along without it. But often I was tempted, as my hoard began to grow, to spend it for some of the good things the merchants had displayed, brought by camels and ships from the land of the Phoenicians. But I wisely refrained.
“A twelfth month after Algamish had gone, he again returned and said to me, ‘Son, have you paid to yourself not less than one-tenth of all you have earned this past year?’
“I answered proudly, ‘Yes, master. I have.’
“‘That is good,’ said Algamish. ‘And what have you done with it?’
“‘I have given it to Azmur, the brick maker, who told me he was traveling over the far seas and in Tyre he would buy for me the rare jewels of the Phoenicians. When he returns, we shall sell these at high prices and divide the earnings.’
“‘Every fool must learn,’ Algamish growled. ‘But why trust the knowledge of a brick maker about jewels? Would you go to the bread maker to inquire about the stars? No, you would go to the astrologer, if you had the power to think. Your savings are gone, youth. You have jerked your wealth tree up by the roots. But plant another. Try again. And next time if you would have the advice about jewels, go to the jewel merchant. If you would know the truth about sheep, go to the herdsman.’ ”
The moral?
“‘Advice is one thing that is freely given away, but watch that you take only what is worth having. He who takes advice about his savings from one who is inexperienced in such matters shall pay with his savings.’ ”
Arkad’s message to his aspiring friends: “‘Start thy purse to fattening. For every ten coins thy placest within thy purse, take out but nine. Thy purse will start to fatten at once.’ ”
In other words, save at least 10% of everything you earn!
Literally set up a direct debit to your savings account, automate it , forget about it and go about your business as usual. If you can’t do that simply put away the cash in a “safe.”
Challenge yourself to put this into action for at least one month — just to see what happens, and do let us know what you experience.
