George Samuel Clason’s book, The Richest Man In Babylon is just as relevant today as it was in 1926 when it was published. It is undeniably a personal finance classic.
The book chronicles how practical money management and wealth-building lessons were used by Arkad, who had a humble background as a son of a merchant but grew to become the richest man in the ancient city of Babylon. Arkad achieved this feat by riding on the wisdom he gathered from the rich money lender called Algamish.
In this short article, we explore 7 simple steps identified in this 97-year-old book and how you can employ these steps in diligently building your wealth. These 7 financial lessons are compiled from what Arkad called “seven cures for a lean purse” which he presented to a group of 100 men over seven days in a bid to transform Babylon into the wealthiest city in the world.
Here are the nuggets:
1. Start thy purse to fattening
“For every ten coins, thou placest 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 their soul”.
Interpretation: Save 10% of your income.
Well, say no more. Cowrywise has made this super easy. We automate your savings and you can even save more than 10%.
2. Control thy expenditures
“What each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary. Confuse not the necessary expenses with thy desires”.
Interpretation: Live below your means
3. Make thy gold multiply
“The gold we may retain from our earnings is but the start. The earnings it will make shall build our fortunes. Learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you”.
Interpretation: Make your money work for you
And this, on Cowrywise you earn returns on your periodic savings. We do not stop at helping you save money, we take a step further by making that saving work for you i.e investing.
4. Guard thy treasures against loss
“The first sound principle of investment is security for thy principal. Is it wise to be intrigued by larger earnings when thy principal may be lost? I say not. The penalty of risk is a probable loss. Study carefully, before parting with thy treasure, each assurance that it may be safely reclaimed. Be not misled by thine own romantic desires to make wealth rapidly”.
Interpretation: Protect your wealth
Security is important. Hence our proactive approach to the security of savings through our Trust structure that allows all assets to be held by our custodian on behalf of savers.
5. Make of thy dwelling a profitable investment
“I recommend that every man own the roof that sheltered him and his. Nor is it beyond the ability of any well-intentioned man to own his home. To own his own domicile and to have it a place he is proud to care for, putteth confidence in his heart and greater effort behind all his endeavours”
Interpretation: Build or rent a home you can comfortably afford.
You can easily create a house rent plan on Cowrywise and save towards that financial goal much quicker.
6. Ensure a future income
“The life of every man proceedeth from his childhood to his old age. Therefore do I say that it behoves a man to make preparations for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them.”
Interpretation: Plan for retirement
It is not early to start saving for that retirement life you dream of.
7. Increase thy ability to earn
“That man who seeks to learn more of his craft shall be richly rewarded. The more wisdom we know, the more we may earn. Cultivate thy own powers, to study and become wiser, to become more skilful, to so act as to respect thyself. Thereby shalt thou acquire confidence in thyself to achieve thy carefully considered desires”
Interpretation: Invest in yourself
We cannot overemphasize this nugget, probably the most important in The Richest Man in Babylon, as it provides the capacity for you to earn more.
Conclusion
Our attraction to this book is its simplicity, relevance and potency. Those nuggets work like magic every day once they are implemented. The beauty is we have made the implementation of these nuggets much easier to achieve in today’s world. We recommend to everyone in a heartbeat to read the full version of the book for your pleasure and nugget 7 above.
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I started working as an outreach intern in Jan 2015 then I was staffed in May. I grew from outreach intern to officer to coordinator the moved to alumni affairs coordinator/social media manager and now I drive communication efforts in my organisation at WAVE.
I started with 18k. Lol. Never forgetting that. Now, let’s just say I’m able to do the these I want to do. Ps- I like to enjoy life cos YOLO.
I doubt that I’ll find another organisation like mine. From culture to leadership to working environment to remuneration, it’s one I admire and I’m always quick to get my friends to come work in because the average Nigerian thinks all Nigerian employers are out to exploit them which isn’t true.
Some are particular and deliberate about your growth which is why I’ve been here 5 years and counting
Your story is so inspiring! ?
We can imagine how much growth you’ll enjoy in the next 5 years if you keep this up.
All the best and thanks for reading.
This was a really good article, well thought out and honest.
Thanks for reading. ?
I have worked for the same company, JPS, since March, 2018 and that is three months after my youth service. And I have enjoyed my time here. There are opportunities for progress and I agree with all that is said in this post.
I was promoted and moved to a different unit after a year of work. It is really interesting how much I have achieved in my two and a half years here. I have moved out of my parents place to rent an apartment, and i’m working on a few investment opportunities which I believe will move me closer to a HNWI in the nearest future.
So good! ?
You’re already on the right path to wealth creation.
We’re definitely rooting for you!
Really insightful piece. Intrapreneurship? Nice perspective. I really appreciate it. Even though the average Nigerian employers IS out to drain you mentally, emotionally and physically, hence the rise to fame of the ‘fire your boss’ mantra..
It’s good to know there are still companies out there that are after employee development.
So, ok. I’ll look inwards today. Self analyse. And use this piece as a foundation for strategizing the way forward. Especially since next year is just around the corner. (New year resolution things)
To all the previous comments, thanks for the enlightenment.
To the author, your finesse in content writing is a gem.
Cheers to you
Cheers to you too, Chimdi. ?
We’re so glad you found this helpful.
Very helpful. Thanks
You’re welcome, Kingsley. ?
Thank you for this article. I enjoyed it thoroughly.
Thanks for taking the time to read it!?
Love love love this article!
Thank you so much for sharing.
It was super insightful.
P.S – Cowrywise forever! ?
Whoosh! “Cowrywise forever!”
That’s the same way we’re rooting for you forever too! ?
Thank you, Christabel
You have said it all. As a graduate when i was still in school, i get to see how my brothers complain daily about working and how tired they feel when they come back home. Some talked about how interesting and how they have learnt alot in their current position.
it was clear to me that, i need a business of my own. Currently i am working as a teacher in a small school paying me 15k, i love teaching and i have my business a computer training center and an online store where i sell some digital products, its growing gradually and i just love it.
Well done!!!
We love that you already have multiply streams of income.?
I gained so much from this article. Thanks
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This is a good read I must say, well done Ope.
Thank you, Promise
Its interesting how I stumbled on Cowrywise on Google PlayStore, downloaded it and blindly followed it without any form of due diligence and today, I am happy I trusted my instincts.
I am a 9 to 5, I have no regrets about it because I have been thoroughly exposed to a world I may not have known elsewhere.
I have also ventured into entrepreneurship and had my fingers burnt but the experience is priceless.
Now I am on a mission to creating businesses of the future through savings and investments.
Thank you Open.
Quite enlightening.
So glad you trusted your instincts, Paschal.
Looking forward to your wins in your career.?
Thank you for this article. It was a good read and worth the time. I had to even share with some few colleagues.
I am a 9 to 5er too and I am actually enjoying what i do. This article would serve as a guide.
You’re a good colleague, Teslim.
Thanks for sharing!
One of the best articles I’ve read this year. This has always been my thought; you can be a 9 to 5er and be extremely wealth. Its about planning and investing. Thank you Ope.
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This is so insightful, I just finish reading for the third time since yesterday. Thank you so much Ope
Thank you! ?
This article is very educative. Thanks Ope.
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Intrapreneurship…this is super educative Sir, thanks for sharing such an amazing piece.
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I totally enjoyed reading this article and I find it very insightful as well.
Thanks, Ope for the efforts taken to educate Cowrywise users.
Thank you, Moses, for reading!
I really don’t know the link I click that took me to this article, but regardless I love what I just read , I have always being a fan of side hustle , that made me have a small accessories and props store online, although still serving (Nysc) but still I wanna see how 9 to 5 is , I’m really open to it
Thanks Ope for the lovely piece
I started real estate consultancy after my NYSC about a year ago and you can make a good deal of money from commissions over every sale. It is a side hustle that might probably turn into full time soon lol.
Awesome.
Well done, Uche.
We’re rooting for you!
Beautiful piece. Very interesting and enlightening read. Thank you!
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Intrapreneurship… Wow I didn’t know that was a thing, I’m still a student but I like the idea of working a 9-5, I’ve worked a 9-5 before and also have a business I’m running. I’m particularly inspired by the story of Sheryl, I really hope to look back in a couple of years and be glad I read this write up. Thanks Ope- You’re the best