The Richest Man In Babylon Summary

Chapter 1

Chapter 1 tells us the story of Kobbi and Bansir. Bansir is bemoaning his type of existence – always working so hard yet never having any riches to show for it. The two talk about how much gold they had earned so hard over the years, and how they still did not have any gold of their own, as it had all been spent just so they could live. They discuss how they had both hoped that they may one day come into riches, yet this had never happened to them. They both reach the depths of misery while talking about this, and in this miserable state, they make a plan. They decide to approach one of their childhood friends, Arkad, who made the boast of being ‘The Richest Man in Babylon.’ They talk about how maybe there is a secret that they can learn from him on how to acquire wealth and riches. They are struck with an epiphany- that maybe the reason they have not yet acquired riches is because they have not actively set out to do so. Kobbi states that one day he decided to become a successful lyre player and this he did, so if the men set out to become rich and wealthy, surely they can do this too?

Chapter 2

In this chapter, Kobbi and Bansir meet up with Arkad. Arkad tells Kobbi and Bansir that the reason they have failed to accumulate wealth may be because they have failed to observe the laws that govern wealth, or may be because if they know these laws, they have failed to follow them. He told them that when he was younger he had done a job for a moneylender who was rich, and he had asked this man for advice. This man was called Algamish, and he told Arkad to save at least a tenth of the gold he earnt and to let this copper work for him to help him generate riches. Arkad did this and gave this money to a bricklayer so the bricklayer could invest in some precious jewels.

However these jewels prove to be worthless, and Arkad once again seeks the advice of Algamish. Algamish told him that he has learnt a valuable lesson – and to invest his money wisely. Arkad went away and this time loaned his money to a shield maker who paid interest on the savings, but Arkad used this interest to hold feasts. Algamish told him that if he was spending his money on feasts, it wasn’t able to earn more money for him. After 2 years Algamish was pleased with the lessons that Arkad had learnt, and told him that he had done well – he had learned to live on less money than he earned, that he had sought advice from those wiser than him and that he had learnt how to make his money work for him and be his slave. Arkad was pleased with what Algamish had said, and he told Kobbi and Bansir this whole story so that they too might learn. Some of the group who had been listening to Arkad with Kobbi and Bansir understood what he was saying, and some walked away with no greater understanding.
Chapter 3

In this chapter, King Sargon is worried about the city as it is getting poorer and he seeks the advice of Arkad. Arkad tells the King his own story and teaches the King the 7 secrets for a lean purse. These 7 secrets are:

Start Thy Purse to Fattening – Save at least 10% of your income

Control Thy Expenditures – Budget what you will need to buy based on 9/10s of your income

Make Thy Gold Multiply – Make sure that your money is working for you

Guard Thy Treasures from Loss – Ensure that you are investing in safe ventures, and ask for advice from wise people about how to invest

Make of Thy Dwelling a Profitable Investment – Own your own home

Insure a Future Income – Provide in advance for your own getting older and looking after your family

Increase Thy Ability to Earn – Always seek to learn more and become wiser, which will help you financially

Arkad finishes this lecture to the King by encouraging him to teach his subjects about this so that they could all be wealthy.

Chapter 4

In this chapter, Arkad is addressing the King’s chosen 100. He is talking about luck, as he is asked if it possible to encourage luck in life as everybody harbours a desire to be lucky. Arkad starts by talking about gambling – he says that while it unlikely yet possible to win a large amount of money in this way, he wonders whether this way of earning money really will bring good fortune with that money. He says he knows not a single rich man who has started being rich in this way. He says that his view is that good luck instead comes to people who do not procrastinate but instead accept opportunities when they come their way. He says that those who hesitate and procrastinate and fail to take opportunities do not attract good luck, but people who are willing to jump into opportunities are favoured by the goddess of good luck. Arkad once again reiterates to the men that they should invest at least 1/10 of what they earn.