The Richest Man in Babylon (Summary)
Arkad was just a poor scribe, working tirelessly for a few copper coins. When the wealthy money-lender Algamish offered him the secret to immense wealth in exchange for a single all-night carving job, Arkad seized the chance. The secret wasn't a complex scheme or a magic spell. It was a stunningly simple, almost unbelievable rule: 'A part of all you earn is yours to keep.' By saving just one-tenth of his meager income before paying for anything else, Arkad began a journey that would make him the richest man in Babylon.
Pay Yourself First
The foundational principle of wealth is to save at least 10% of every dollar you earn before you pay any other expenses. This saved portion is the seed from which your fortune will grow.
Despite his debts and desires, the scribe Arkad committed to setting aside one out of every ten copper pieces he earned. He treated this saving as a non-negotiable first payment, even before buying food or clothes. This small, consistent act was the single most important step in transforming his empty purse into a full one.
Make Your Savings Your Slaves
Simply hoarding money is not enough. You must put your saved capital to work through wise investments, creating an army of 'golden slaves' that earn more money for you, day and night.
Arkad made his first investment by lending his savings to a shield-maker, who paid him interest. He described this interest as the 'children' of his savings. He then put those children to work, re-investing the profits to generate even more income, creating a continuous stream of wealth that was independent of his own labor.
Don't Take Advice from a Brickmaker About Jewels
Seek counsel only from those who are experts in the field you're investing in. A well-meaning but unqualified advisor is one of the quickest routes to losing your hard-earned capital.
Arkad recounts one of his first, most painful financial losses. He gave his entire year's savings to Azmur, a brickmaker, who was traveling to buy rare jewels. The plan sounded profitable, but Azmur knew nothing about gems and was swindled by Phoenician traders. The lesson was brutal: never trust a brickmaker's knowledge of jewels.
A Fat Purse Comes from Many Small Streams
True financial security comes not from a single high-paying job, but from cultivating multiple streams of income. Your primary job is just the first stream; your investments must create others.
The book uses the analogy of an egg basket. A wise farmer doesn't rely on a single basket. Arkad didn't just lend money to the shield-maker; he diversified his investments into various ventures and loans. This ensured that even if one stream dried up, others would continue to flow, fattening his purse and securing his wealth against misfortune.
