I stumbled upon this book time and again whenever I was looking for effective books to read on personal finance. So I finally decided to give it a go and I wasn’t disappointed.

Although this book is written about an ancient kingdom that existed 4000 years ago, surprisingly, all the principals and money laws mentioned hold good and true even today.

This is my book summary of The Richest Man in Babylon by George S. Calson. This summary contains quotes from the book as well as my own thoughts, key lessons and important passages from the book.

- Learning was of two kinds: the one kind being the things we learned and knew, and the other being the training that taught us how to find out what we did not know.

- When talking about receiving wisdom from older people Calson says, The sun that shines today is the sun that shone when your father was born, and will still be shining when your last grandchild shall pass into the darkness. So the youth should not mistake this wisdom to be of the days that are gone.

- Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow.

- Opportunity is a haughty goddess who wastes no time with those who are unprepared.

 - A part of all you earn is yours to keep.

- Men of action are favored by the Goddess of Good Luck. Good luck can be enticed by accepting opportunities.

The 7 rules of making money

• Start thy Purse to fattening – for every 10 coins you place in your purse spend only nine. ( Save Money)
• Control thy expenditures – Budget your expenses so you may have money to pay for your necessities, to pay for your enjoyments and to gratify your desires without spending more than nine-tenths of your earnings. (Don’t spend excess)
• Make thy Gold Multiply – to put each coin saved into laboring that it may reproduce its kind and help bring you income, a stream of wealth that shall flow constantly into your purse. (make your money work for you)
• Guard thy treasures from loss – invest only where your principal is safe, where it may be reclaimed when desirable and where you will collect a fair rental on it. Consult with experts, those experienced in money matters.
• Make of thy dwelling a profitable investment: own your home.
• Insure a future income – provide in advance for the needs of your growing age and the protection of your family.
• Increase thy ability to earn – cultivate your own powers, to study and become wiser, to become more skillful, to so act as to respect yourself.

The 5 laws of Gold

• Gold comes gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
• Gold labors diligently and contentedly for the wise owner who finds for it profitable employment, multiplying.
• Gold clings to the protection of the cautious owner who invest it under the advice of men wise in its handling.
• Gold slips away from the man who invests in its businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
• Gold flees the man who would force it to impossible earnings or who follow the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.

- Gold brings onto its possessor a responsibility and a changed position with his fellow men.

- If you desire to help your friend do so in a way that will not bring your friend’s burdens on yourself. Do not be swayed by foolish sentiments of obligation to trust your treasure to any person.

- To be a wise money lender be sure that you have a safe way to pull back every coin that leaves your purse. Guarantee yourself repayments should the borrower be unable to pay.

- Better a little caution that a great regret.

- We cannot afford to be without adequate protection – in today’s times we need to guard ourselves against unexpected catastrophic losses by employing insurances, savings accounts and dependable investments.

No man can respect himself if he cannot pay his debts. To respect himself a must also:

• Pay his debts promptly, without indulging in purchases for which he is unable to pay.
• Take care of his family that they may think and speak well of him.
• Make a will of record, that in case of his death, proper and honorable division of his property can be accomplished.
• Must have compassion upon those who are injured, and unfortunate and help them within reasonable limits. He must practice thoughtful deeds for those close to him.

- Where there is determination, a way can be found.

- Work is the secret key to huge treasures. Work attracts friends who admire your industry and the success it brings. Work brings you honor. Work brings you approval of the experts and the experienced.

- The book proves that man has the ability to achieve whatever he desires using whatever means are available at his disposal.

- No line of work, trade, business or profession is insignificant enough that you cannot achieve your long standing desires, you just have to follow the 7 rules of money.

Conclusion

Read this book if you want to acquire money, keep that money and to make its surpluses earn more money. It has an important message that is true and vital and practical.