7 Secrets from Ancient Babylon to Become Rich Starting from Scratch

Tactics like these, you can learn too. “It’s practical. What one knows, others can learn,” says George S. Clayson in his classic The Richest Man In Babylon. Clayson’s collection of parables, based on the ancient city of Babylon, begins with the story of Arkad, the son of a humble merchant, who manages to become the richest man in Babylon thanks to the wisdom he acquired from the wealthy Algamish.

Hoping to make the city the richest in the world, the king of Babylon asks Arkad to share the “secret of wealth” with his fellow citizens. Arkad obeys and within seven days teaches 100 people what he calls “the seven remedies for a skinny wallet.” Here are the 7 “secrets” adapted to our times:

1# Start fattening your wallet

Arkad advises his “students” to set aside at least 10% of their income. “For every ten coins you put in your wallet, take out and use only nine. Your wallet will begin to fatten immediately and its increasing weight will feel beautiful in your hand and bring satisfaction to your soul,” he says.

2# Control your expenses

The next step is simply to spend less than you make, which is harder than it sounds, as in our hyper-consumer society it’s incredibly easy to get away with spending, and even when incomes increase, people tend to also increase their waste. “What each of us calls ‘necessary expenses’ will always increase and equal our incomes, unless we decide otherwise,” notes Arkad. “Don’t confuse necessary expenses with your desires.”

3# Multiply your gold

Having followed the previous tips, the next step is to “grow” the money that will be collected. “The gold we can keep from our earnings is just the beginning,” says Arkad. “The revenue he brings will build our fortunes… Learn to make your treasure work for you. Make him your slave. Make his children and his children’s children work for you.” Simply put, invest.

4# Protect your treasures from loss

There is always some risk involved in investing anywhere, which is why it is important to be smart when choosing where to invest your money. “The first logical principle of investing is the safety of your initial capital,” says Arkad. “Is it wise to be enamored with big profits when your initial capital may be lost? I say it is not. The penalty of risk is the potential loss. Carefully study before parting with your treasure any assurance that it will be safe. Don’t get carried away by your own romantic get-rich-quick desires.”

5# Make your home a profitable investment

“I advise everyone to own the roof that protects them,” Arkad tells his students on the fifth day. “It is not beyond the reach of any well-intentioned person to own his own home.”

Today there are many different opinions expressed on this subject, and there is no universally accepted answer as to whether it is better to own your own home or to rent it — however, Arkad’s argument is that “owning your own his home and to have it as a place he is proud to care for, adds confidence to his heart and greater effort in all his undertakings.”

6# Secure a future income

“Every person’s life spans from childhood to old age,” says Arkad. “I say, therefore, that it is a man’s duty to prepare himself for an income in the days to come, when he is no longer young, and to provide for his family when he is no longer with them to support them.”

Time is our greatest asset when investing in a retirement plan, so the earlier you start saving for your old age, the better off you will be in your later years.

7# Increase your ability to collect

“The more wisdom we have, the more we can reap,” Arkad says. “The man who seeks to learn more about his art will be richly rewarded.” Wealthy people choose to learn and evolve constantly — they prefer to be educated rather than entertained, even after achieving incredible feats. Take for example Warren Buffett, who estimates that 80% of his day is devoted to reading.

“Cultivate your own powers, to study and become wiser, to become more competent, to act with self-respect,” says Arkad. “Then you will gain the confidence to achieve your carefully chosen desires”