The book The Richest Man in Babylon by George S. Clason is a collection of parables about being wealthy. It was published in 1926 and has been reprinted several times since then. It’s a book of short stories but powerful, each focusing on a different aspect of prosperity, such as fattening your purse or increasing your ability to earn. 

Some may read these tales as simple lessons on wealth management. Others may find them more helpful in their pursuit of happiness, fulfillment, and success.

This article will present you with the secret sauce of financial security from Arkad, the richest man in Babylon, and the simple ways to fatten your purses. You will learn seven wise financial advice from ancient times yet remain relevant today.

1. Start fattening thy purse

“For every ten coins thou places within thy purse, take out for use but nine. Thy purse will start to fatten at once, and its increasing weight will feel good in thy hand and bring satisfaction to thy soul”.

Let’s understand the first cure to fatten thy wealth. First thing, start small and work your way up from there. You can’t just save any amount, have a clear plan, so your savings will get you where you want to go.

You may have heard the saying, “the journey of a thousand miles begins with a single step.” It is true in many things, and it’s also true when it comes to saving money.

As soon as you have a little extra money, put it away for a rainy day. Put 10% of your income for monthly savings, and don’t touch them until they are needed.

Some successful people started with small amounts or nothing but still managed to become rich.

Ikea founder Ingvar Kamprad started selling matches as a child. He used his money to buy cardboard boxes. He began selling pens and other items from his bedroom closet. It became the beginning of what would become one of the largest furniture retailers in the world.

The idea here is simple. To succeed, you must start small and consistently save money.

This powerful line is an excellent reminder for us to continue saving, just like the rich young man in the story.

“Surely, it is a law of the Gods that unto him who keep and spend not a certain part of all his earnings, shall gold come more easily. Likewise, he whose purse is empty does gold avoid.”

In the end, if you diligently save up and fatten your purse, it’s already a short-term financial success.

2. Control Thy Expenditures

“Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay for thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings.”

If you’re looking to get your finances in order, the most important thing you can do is to set a budget. A budget can help you manage your money better and ensure you do not spend more than you earn. 

By planning, you can save up for emergencies or necessary expenses that may require large amounts of money at one time. You will also be able to save towards your short-term and long-term goals by putting away money each month into an account dedicated towards it instead of just spending it all right away on things like gadgets or unnecessary expenses.

Related: Smart Financial Goals: Here’s a List of Great Examples 

When it’s hard to control your expenditures, remind yourself of the wealthy people in ancient times.

“Engrave upon the clay tablets each thing for which thou desireth spend. Select those that are necessary and others that are possible through the expenditure of nine-tenths of thy income. Cross out the rest and consider them a part of that great multitude of desires that must go unsatisfied and regret not.”

3. Make Thy Gold Multiply

“To put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth shall constantly flow into thy purse.”

It is an excellent lesson for anyone who wants to be more successful with money. Your lean purse will fatten if you save 10% of your income monthly and make your saved money work for you by investing it wisely. 

Having profitable employment isn’t enough. Investing wisely is more important than working hard for it. 

So, how can you build your wealth like a rich man in today’s time?

a. Start a business – Another way you can use wealth to make more is by starting or buying an existing business and working on growing it until it becomes successful enough for you to sell at a profit. If starting from scratch isn’t for you, plenty of companies out there are looking for experienced employees who want to create their own company within them.

b. Get involved with stocks – Stocks are another excellent option if they’re something that interests you. They can provide high returns with minimal risk when purchased at low prices and sold when their price goes up.

c. Invest in gold – The best way to protect your money from inflation, government intervention, and the banking system is to buy a gold piece or bags of gold.

d. Invest in real estate – Investing in real estate can be a great way to build wealth over time. It can be done by buying properties, purchasing a home for yourself to live in, renting it out, or selling for profit. Ensure that your real estate investment is a value of money.

Related: Commercial vs. Residential Real Estate: Which Property is Better to Invest in?

The next time you’re thinking about spending much money on something frivolous or unnecessary, think about how much better off you’d be if, instead, you were investing that money to multiply.

Related: The Millionaire Next Door: Here are 7 Remarkable Lessons Learned

4. Guard Thy Treasure From Loss

“Guard thy treasure from loss by investing only where thy principal is safe, where it may be reclaimed if desirable and where thou will not fail to collect a fair rental. Secure the advice of those experienced in the profitable handling of gold. Consult with wise men. Let their wisdom protect thy treasure from unsafe investments.”

The greatest danger a wealthy man faces is losing his property through investment in unsafe investments. Therefore, one should be meticulous in selecting a place to invest personal wealth and consider the possible wealth-building strategy before making any decision.

Before investing your hard-earned money in any investment venture, you must know the people associated with that business.

What type of service do they offer? Are they reliable? What is their reputation? Do they pay taxes regularly? Do they give good returns on investments made by their clients or customers? These are some questions that every investor must ask himself before investing his money elsewhere.

If you’re interested in learning more about real estate investment opportunities, visit Wellthy Capital today.

Investing in gold is another way to protect your treasure from loss. We’re talking about real gold, which will last forever and never lose its value. You can keep your treasure in a safe place, where it won’t get stolen or damaged. We’re talking about real gold, which will last forever and never lose its value. 

5. Make Thy Dwelling a Profitable Investment

“Thus come many blessings to the man who owneth his own house. And greatly will it reduce his cost of living, making more of his earnings available for pleasure and the gratification of desires. This, then, is the fifth cure for a lean purse. Own thy own home.”

A house is one of the most secure investments you can make. It’s a solid investment in your future. It’ll help you save money on taxes and utilities by giving you a place to call your own. 

When you own a home, you can take advantage of the equity built up in your property over time. You can invest this money in other real estate investments, and you’ll be able to reap the benefits of owning more than one property. Also, it’ll give you something to pass down from generation to generation when the time comes.

In addition, homeowners pay less in taxes than renters. They have more money to spend on what they want.

6. Ensure a Future Income

“Provide in advance for the needs of thy growing age and the protection of thy family.”

 You need to be prepared for anything in a world with an uncertain future.

Everyone desires to live a comfortable life at old age. The only way to achieve this is by providing for it in advance. It is essential to plan your future income and take steps to make it happen.

You may be thinking about what you will do with your life in 10 years? Or 20 years? 

An excellent way to do this is by accumulating wealth and properties for the future: buy an investment property, invest in the stock market and bonds, and start a small business. 

A good policy in an insurance company can help you earn a steady income after retirement. At the same time, a pension scheme ensures regular payments throughout your lifetime. It somehow gives you financial security. With these schemes, you can provide a secure future for yourself and your family members.

Related: Secure a Comfortable Retirement: How Much Do You Need?

Another reliable way to ensure that your income will keep up with inflation and allow you to build a solid financial base for the future is through real estate investments.

Wise people usually invest in real estate because it pays off down the road. It’s not just means of making money. It’s an opportunity to create wealth and build a stable financial future for yourself and your family.

Related: Multifamily Real Estate Investments: Easy Guide to New Investors 

7. Increase the ability to earn

 

“Cultivate thy powers, to study and become wiser, to become more skillful, to act as to respect thyself.”

If you want to be successful in life and achieve financial freedom, then hard work for learning is one of the best things you can do for yourself. If you study and instill respect for yourself and others, you will have your own powers to become wiser and eventually increase your earning potential.

Recommended Video: From Having Nothing as Immigrant  to Becoming Financially Free

“The more wisdom we know, the more we may earn. That man who seeks to learn more of his craft shall be richly rewarded.”

The lesson of this story is not that money can buy you success. It’s that wisdom can.

Related: Financial Independence: What is the Valuable First Step?

We’ve come a long way since the days of the richest man in Babylon. 

Related:  Time vs. Money: Which is More Important in Life?

Conclusion

The Richest Man in Babylon book has stood the test of time because it teaches timeless principles that can help you improve your life and personal finance. 

This inspiring book has changed my life. It’s one of those rare books that just speaks to your soul. The stories in the book are incredibly compelling, and they get better as time progresses. 

The wisdom of the wealthiest man in Babylon can help you understand how to make a lot of money, save, invest your money safely, and give back generously. If you’ve been struggling financially, this book is for you! Read the whole book, and you’ll see it’s a gem.

Related: The Go-Giver Book Summary: Unravel the Powerful Secrets to Succeed

If you’re looking for a way to improve your financial wellbeing, follow the podcast The Path to Wellth by Hannes Hennche on Apple, Stitcher, and Spotify. It’s a great way to learn from the success stories of successful professionals and passive investors.