I read "The Richest Man in Babylon" by George Clason after I chanced on it in a Little Free Library.
I selected the book because it is cited on the Recommended Books wiki page of the Financial Independence subreddit at https://www.reddit.com/r/financialindependence/wiki/books. I would recommend it as a short weekend read because of its simple stories illustrating financial principles that are told in the style of a biblical parable. If you are pondering a graduation gift for a 14 year old or a kid who has just gotten his or her first job, you should consider giving this book.
These are the passages I highlighted:
Money is the medium by which earthly success is measured. Money makes possible the enjoyment of the best the earth affords. Money is plentiful for those who understand the simple laws that govern its acquisition. Money is governed today by the same laws which controlled it when prosperous men thronged the streets of Babylon, six thousand years ago.
Our acts can be no wiser than our thoughts. Our thinking can be no wiser than our understanding.
Thereupon Arkad remonstrated with them, saying, “If you have not acquired more than a bare existence in the years since we were youths, it it because you either have failed to learn the laws that govern the building of wealth, or else you do not observe them.”
“‘Fickle fate’ is a vicious goddess who brings no permanent good to anyone. On the contrary, she brings ruin to almost every man upon whom she showers unearned gold. She makes wanton spenders, who soon dissipate all they receive and are left beset by overwhelming appetites and desires they have not the ability to gratify. Yet others whom she favors become misers and hoard their wealth, fearing to spend what they have, knowing they do not possess the ability to replace it. They further are beset by fear of robbers and doom themselves to lives of emptiness and secret misery.”
One may do all these things and many others in which there is delight for the senses and gratification for the soul.
And when youth comes to age for advice he receives the wisdom of years. But too often does youth think that age knows only the wisdom of days that are gone, and therefore profits not. But remember this, the sun that shines today is the sun that shone when thy father was born, and will still be shining when their last grandchild shall pass into the darkness.
Pay yourself first.
Willpower is but the unflinching purpose to carry a task you set for yourself to fulfillment. If i set for myself a task, be it ever so trifling, i shall see it through. How else shall i have confidence in myself to do important things?
‘Wealth grows wherever men exert energy,’ Arkad replied. If a rich man builds him a new palace, is the gold he pays out gone? No, the brickmaker has part of it and the laborer has part of it, and the artist has part of it. And everyone who labors upon the house has part of it. Yet when the palace is completed, is it not worth all it cost? And is the ground upon which it stands not worth more because it is there? And is the ground that adjoins it not worth more because it is there? Wealth grows in magic ways. No man can prophesy the limit of it. Have not the P
hoenicians built great cities on barren coasts with the wealth that comes from their ships of commerce upon the seas?
Live otherwise according to your income and let not yourself get niggardly and afraid to spend. Life is good and life is rich with things worthwhile and things to enjoy.
Which desirest thou the most? Is it the gratification of thy desires of each day, a jewel, a bit of finery, better raiment, more food; things quickly gone and forgotten? Or is it substantial belongings, gold, lands, herds, merchandise, income-bringing investments? The coins thou takest from thy purse bring the first. The coins thou leavest within it will bring the latter.
All men are burdened with more desires than they can gratify. Because of my wealth thinkest thou I may gratify every desire? ‘Tis a false idea. There are limits to my time. There are limits to my strength. There are limits to the distance i may travel. There are limits to what i may eat. There are limits to the zest with which i may enjoy.
Let thy motto be one hundred percent of appreciated value demanded for each coin spent.
Therefore, engrave upon the clay each thing for which though desireth to spend. Select those that are necessary and those that are possible though the expenditure of nine-tenths of thy income. Cross out the rest and consider them but a part of that great multitude of desires that must go unsatisfied and regret them not.
I tell you, my students, a man’s wealth is not in the coins he carries in his purse; it is the income he buildeth, the golden stream that continually floweth into his purse and keepeth it always bulging. That is what every man desireth. That is what thou, each one of thee desireth; an income that continueth to come whether thou worketh or travel.
Better by far to consult the wisdom of those experienced in handling money for profit.
Therefore do I say that it behooves a man to make preparation for a suitable income in the days to come, when he is no longer young.
Preceding accomplishment must be desire. Thy desires must be strong and definite. General desires are but weak longings. For a man to wish to be rich is of little purpose. For a man to desire five pieces of gold is a tangible desire which he can press to fulfillment.
Always do the affairs of men change and improve because keen-minded men seek greater skill that they may better serve those upon whose patronage they depend. Therefore, I urge all men to be in the front rank of progress and not to stand still, lest they be left behind.
…share liberally in the ample wealth of our beloved city.
We meet here to consider all sides of each question.
With all men, that first step, which changes them from men who earn from their own labor to men who draw dividends from the earnings of their gold, is important. Some, fortunately, take it when young and thereby outstrip in financial success those who do take it later or those unfortunate men, like the father of this merchant, who never take it.
[addresses procrastination]
At last, I did recognize it for what it was – a habit of needless delaying where action was required, action prompt and decisive.
So must every man master his own spirit of procrastination before he can expect to share in the rich treasures of Babylon.
Dost agree with me that no man can arrive at a full measure of success until he hath completely crushed the spirit of procrastination within him?
Those eager to grasp opportunities for their betterment, do attract the interest of the good goddess. She is ever anxious to aid those who please her. Men of action please her best. Action will lead thee forward to the successes thou dost desire.
Gold is reserved for those who know its laws and abide by them.
To earn wealth is but a slight burden upon the thoughtful man. Bearing the burden consistently from year to year accomplishes the final purpose.
Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
Our wise acts accompany us through life to please us and to help us. Just as surely, our unwise actions follow us to plague and torment us.
If you desire to help thy friend, do so in a way that will not bring thy friend’s burdens upon thyself.
The safest loans are to those whose possessions are of more value than the one they desire. They own lands, or jewels, or camels, or other things which could be sold to repay the loan. Some of the tokens given to me are jewels of more value than the loan. Others are promises that if the loan be not repaid as agreed they will deliver to me certain property settlement. On loans like those i am assured that my gold will be returned with the rental thereon, for the loan is based on property.
Life is hard and there will always be some who cannot adjust themselves to it.
Better a little caution than a great regret.
Babylon endured century after century because it was fully protected. It could not afford to be otherwise.
The walls of Babylon were an outstanding example of man’s need and desire for protection. This desire is inherent in the human race. It is just as strong today as it ever was, but we have developed broader and better plans to accomplish the same purpose.
In this day, behind the impregnable walls of insurance, savings accounts and dependable investments, we can guard ourselves against the unexpected tragedies that may enter any door and seat themselves before any fireside.
We cannot afford to be without adequate protection.
Then a strange thing happened. All the world seemed to be of a different color as though I had been looking at it through a colored stone which had suddenly been removed. At last I saw the true values in life.
My debts were my enemies, but the men I owed were my friends for they had trusted me and believed in me.
We found the trail to babylon because the soul of a free man looks at life as a series of problems to be solved and solves them, while the soul of a slave whines, ‘What can I do who am but a slave?’
Even though I cannot meet the needs and demands of a few of my creditors I will deal impartially with all.
Who would believe there could be such a difference in results between following a financial plan and just drifting along.
Now you can understand why we would like to extend our personal thanks to that old chap whose plan saved us from our ‘hell on earth.’
He knew. He had been through it all. He wanted others to benefit from his own bitter experiences. That is why he spent tedious hours carving his message upon the clay.
Soon they would be dragged down to join other craven bodies beside the roadway to await unsanctified graves.
Remember, work, well-done, does good to the man who does it. It makes him a better man.
They were educated and enlightened people. So far as written history goes, they were the first engineers, the first astronomers, the first mathematicians, the first financiers and the first people to have a written language.
pseudoisaac 