The Richest Man in Babylon - Six Laws of Wealth

Even if you weren’t born with a silver spoon, you can still be rich

Getting rich starts with the right attitude. Many of us tend to multiply excuses for why we can’t be prosperous rather than look for ways to accumulate wealth. What is more, there are people who still believe that money is cursed, and it has the potential to corrupt a human soul. This harmful excuse leaves many struggling while lying to themselves. In fact, money is the energy that fuels our daily activities and offers opportunities for self-realization and finding one’s calling.

Our story begins with a certain man named Nasir who lived in ancient Babylon 7000 years ago. He was the richest man at the time, and a lot of people envied him because of his luxurious possessions. Most people accused him of thievery because of the vast amount of gold he had amassed.

On a fateful day, while he plied the roads of Babylon in his caravan, he was halted by the shout of an old friend, Ravi. Ravi asked Nasir if he could still recognize him, and Nasir said sure he could remember calling his name, Ravi. Ravi was, however, perplexed at how much his friend has evolved into a very wealthy person.

To become wealthy, one does not need to be dishonest, as there are many ways to scrape up a fortune through hard work and thinking ahead.

 

He further inquired to know the secret of Nasir’s wealth. After all, he was more than convinced the ill accusations people labeled him with were false because he knew his friend to be a sincere person. Nasir told his friend that he was just obeying the laws of wealth, which he had neglected, and that was the only way.

Ravi pressed further to know these laws of wealth. Nasir, who was at first reluctant to share his secrets because it remained the wealthy people’s code to conceal the keys to their fortune, was then moved by compassion for his dear friend, and he revealed these secrets to him.

Having read this summary, you will also learn what six secrets make people rich. The value of these secrets is that they don’t promise a miraculous and instant wealth accumulation but offer a very real strategic plan to become rich once and for all.

Keep a part of what you earn to yourself

Sitting down to drink some wine, two childhood friends engaged in a mutually beneficial conversation. Nasir started by telling Ravi how he learned wealth wisdom. In his younger years, Nasir worked as a scribe carving words into clay tablets. No matter how hard he worked, he still found it hard to make ends meet. One day, a rich money-lender named Arishaka came by his workshop with a large order. Instead of charging him double, Nasir offered to strike a bargain: he would carve everything requested by the following day, and, in return, Arishaka would tell him a secret about how he became rich.

You asked for my secret, and here it is . . . I found the way to wealth when I discovered that a part of all I earned was mine to keep.

Having kept his end of the bargain, Nasir expected Arishaka to do the same. However, expecting a long and seasoned wisdom talk, the scribe was somewhat disappointed upon hearing a few words that barely made sense to him then. These words were: a part of everything you earn is yours to keep. Frustrated, Nasir defied this statement by claiming that everything he made was his. Arishaka smiled and reminded Nasir that he pays for his groceries, lodgings, and services other people provide for him. What is left then? Nothing!

Have your money tree grow by making investments

The first law steered Nasir in the right direction. But saving money was just the beginning of a long journey to becoming wealthy. Gradually, Nasir learned the 3rd law of wealth. According to this law, one should put all savings to work by investing them wisely.

The sooner you plant the seed, the sooner your tree will mature. And the more you feed and water the tree, by saving and investing, the sooner you’ll bask in contentment beneath it’s shade.

As you invest your money, it tends to multiply. However, there are always things to look out for. In this case, an investor-to-be should look out for questionable businesses they don’t know much about. Before you invest, make sure you understand how this business works. Nasir told his friend Ravi how he invested all of his money into precious stones that turned out to be fake. For sure, Nasir lost all the money he had managed to save. The details of this story will be revealed in chapter “Diversify your investment…”

To be successful, pay off your debts and don’t create new ones

The third law of wealth teaches us to avoid debt because the poor pay interest, while the rich earn interest.

Ravi decided to start saving 1/10 of his income, but the thought of the fact that he had debts to pay was quite distressing. His good friend Nasir said soothing words of encouragement that made Ravi relax, reassuring him there was a plan he had devised to handle that.

You will experience a high degree of freedom when you have true wealth, but getting yourself into debt is a sure way of wallowing in slavery.

First, he made the conscious effort of avoiding incurring more debt. The wisdom his friend shared with him reawakened him to the stress involved in having to borrow money today to enjoy goods that he can’t evade paying for and even paying interest as well tomorrow.

Secondly, rather than spend his entire earnings in a month on recurring needs such as shelter, food, clothing, etc., he would keep no more than seven-tenths of his income for that. He would follow the First Law, saving to invest one-tenth of his income. And the residual two-tenths would be channeled towards settling his debts.

Diversify your investment, don’t put all your money in one place

After 12 months of applying the first and second laws, Nasir began to seek new ways to invest his savings to gain fast returns. He went ahead to withdraw all his savings Arishaka was in the custody of and gave it to a bricklayer named Balashi to aid him to buy jewels from the renowned Phoenicians.

Arishaka, as someone who understands investments, did ask him if he was sure of the investment he was about to embark on. But he did give an affirmative answer. Sooner than later, the investment proved futile, so Nasir incurred a great loss. This was because the cunning Phoenicians sold fake gems to him.

Commenting upon this bad ordeal, Arishaka declared that a business to invest in should be solid and established. Moreover, this business should consistently make a profit and return dividends to its investors. If you’re interested in a business you don’t yet understand, find someone who does. If you want to learn about jewels, apprentice yourself to a jeweler. If you never had any experience working with precious stones, you will have no practical knowledge of how they are.

Language and communication skills can help you establish mutual ground with your future business partners.

Arishaka further encouraged Nasir, telling him not to bother much over the loss of his entire savings. With his experience, he found a sure-fire way of replenishing his savings much faster than it took the first instance. Everything comes with practice, and the more of it we have, the easier it becomes for us to attract wealth.

Listening to the wise words of Arishaka and acting upon them, Nasir made a remarkable entry into the metal trade. He chose to work with the person he knew and invested in the business that proved solid. Doing that, not only did he provide aid in the purchase of more metal, but he also acquired more knowledge, skills, and experience.

This parable wraps up the 4th law of wealth, which urges us to never speculate in get-rich-quick schemes and invest in sustainable businesses that we understand.

The end beneficiary of your investment is always yourself

The story with fake jewels was indeed an eye-opener for Nasir. He learned never to put all his money into one place or give it to one person. Hence, he began diversifying his investments. He did purchase reliable insurance policies as his fortune grew to protect his possessions against catastrophes or robbery as well as to secure an income for his family if his journey on the road of life were cut short.

You can learn from Babylon, which has stood strong despite the numerous attacks she has faced owing to the fortress-like walls surrounding the city. You can apply this to safeguard your increasing wealth. And that is what the 6th law of wealth is about: we should safeguard our growing fortune with diversification and insurance.

If you have obeyed and practiced all of these laws successfully, you might congratulate yourself on becoming financially mature. At this point, you are not only wealthy, but you can relax a bit and have your money for you. Now, you can allow yourself little treats of luxury you have wanted from the start. If you wish for a new house, buy one. If your desire was to travel around the world, do so. Spending money is also important because money, as energy, needs movement. This doesn’t mean that you have to spend everything you have earned with your hard and strategic work; just give yourself something you deserve.

Conclusion

At the end of the day, after hearing Nasir out, Ravi became so inspired that he wanted to share this newly acquired wisdom with his wife and start changing their life right away. Ravi made a promise to his friend that he will share this priceless knowledge with others so that people will understand the laws of wealth. He saw it as a return on the investment his friend has put into him, sharing the knowledge to others.

Ravi, a carpenter, returned home excited and determined. Soon he began constructing an enormous wooden tablet. He carved upon this wooden tablet the 6 laws of wealth to serve as a reminder to his enlightened self and a profound revelation to all who found themselves opportune to pass by his door.

Most importantly, this story shows us that anyone can become rich. All it takes is to follow, step by step, the laws that regulate wealth accumulation. To begin, save at least 10% of your income just for yourself. You can deposit it or keep it in your mattress but always spare 1/10 of your monthly earnings. As you have saved enough, start investing your money into sustainable and reputable businesses that return dividends, and then make do with your debts. Never sign up for get-rich-quick schemes, invest in yourself, and protect your fortune with diversification and insurance.