The Richest Man in Babylon

Babylonians were not always successful but had to learn how to acquire and keep wealth. After the Babylonians complete the city’s major infrastructure projects, such as temples and irrigation canals, people are out of work and, as a result, there is little transfer of wealth within the city: The people and their economy struggle. The Chancellor advises King Sargon that most people are poor because the city’s wealth is owned by a small handful of men, who understand how to manage finances.

King Sargon refuses to “take away from a man what he has fairly earned, to give to men of less ability” (19). Instead, he consults Arkad, the wealthy Babylonian from the previous parables. King Sargon requests that Arkad give his knowledge to a “school of teachers,” who will then instruct the populace in this knowledge (20). Arkad agrees and begins to teach his pupils how to “fatten their purses” (21).

Arkad asks his students how they earn their money, learning that many are scribes and farmers. They all agree they do not have enough money, and Arkad tells them the first “cure” for poverty is to always save 10% of their earnings. The second cure is to “control thy expenditures” by understanding what are “necessary expenses,” and what are merely “desires” (24). Arkad tells the men that they will have to closely examine their spending and deny themselves many things that they want, but do not need, to increase their wealth. Arkad advises the men to do this by writing down a budget of what they need to spend on, always making sure they do not spend their 10% of savings. Arkad explains that the budget exists to “enable thee to realize thy most cherished desires by defending them from thy casual wishes” (25).

The third cure is to “make thy gold multiply” by investing it wisely in businesses that pay interest (25). To illustrate this point, Arkad reflects on how he invested in a shield-makers business that helped him multiply his savings over many years as he always collected an interest from his investment. He also tells a brief story about a farmer who invests funds with a moneylender for his son’s future. These funds grow exponentially over the course of his son’s life and allow him to pass on the great profit to his child.

The fourth cure is to “guard thy treasures from loss” (27). Arkad warns his students against investing their money recklessly in schemes where they may lose all of their money. He advises that they should research any potential investments and only make deals with reputable professionals. He acknowledges how easy it is to cave to “romantic desires” about how to become rich quickly and easily (28). Arkad admits that his first investment was a mistake, and he lost all the savings he had loaned to the brickmaker’s jewel-buying scheme.

The fifth cure is “Make of Thy Dwelling a Profitable Investment” or “Own thy own Home” (29, 31). Arkad points out that by paying rent to landlords, his students are losing a great deal of their income. He advises them to move to the edges of the city, where they can pay brickmakers and builders to construct them a new home. He instructs the men to pay off their debts to these professionals, and any moneylenders they use, within a few years and then enjoy full homeownership. Because it will ultimately “reduce his cost of living,” home ownership is a crucial step to saving more money (31).

Arkad then addresses the issue of income in old age in his sixth cure, telling his students to “insure a future income” for when they can no longer work (31). He reminds his pupils that they will all be elderly in the future and advises them to plan for this vulnerable time of their lives. Arkad says some men store up their money and bury it in a pile of savings; he considers this an insecure method and tells his students to avoid it. Instead, he recommends purchasing land or houses, or making regular investments with money lenders. Finally, Arkad’s seventh cure is to expand your earning potential and “cultivate thy own powers” by becoming more knowledgeable in your work (35).