top of page
Chintan typography_edited.png

The Ancient Secret to Getting Rich: Summary of "The Richest Man in Babylon"

  • Writer: SOHAN TAMANG
    SOHAN TAMANG
  • Nov 3
  • 14 min read


ree

Introduction: The Old-School Secret to a Fat Wallet

Ever get birthday money and feel like a millionaire, only to find your pockets totally empty a week later? Or maybe your allowance just vanishes on snacks and V-Bucks before you can save up for that thing you really want, like a new bike or the latest gaming console? It’s a super common problem, and it’s not just you. But what if I told you there's an ancient secret, like a hidden treasure map, that can teach you how to build a mountain of cash from just a few coins?

This isn't some boring history lesson. We're talking about a book called The Richest Man in Babylon, which is basically a collection of adventure stories from the wealthiest, most blinged-out city in the ancient world. The main character is a guy named Arkad. He wasn't born a prince or anything; he was a regular dude with a regular job as a scribe (which is like being a writer) who started with nothing. He was tired of being broke, so he set out on a quest to figure out the "cheat codes" to money. And guess what? He found them. He became so good with money that he eventually became the richest man in the entire city, all by following a few simple, powerful rules.

The cool part is that these rules, these "secrets," are timeless. They worked thousands of years ago in Babylon, and they work just as well today, whether you're dealing with gold coins or getting paid for chores through a cash app. I'm going to break it all down for you, big brother style. No complicated words, no boring charts that look like your math homework. Just the simple, powerful rules that can make you a money master before you can even drive a car. This book isn't just a story; it's a guide that uses these tales to teach lessons about saving, investing, and avoiding debt that anyone can use to build a secure future. Ready to learn the secrets? Let's dive in.


Part 1: The 7 Cures for a Lean Wallet (How to Go from Zero to Money Hero)

Arkad got so good with money that the king of Babylon basically said, "Dude, you've got to teach everyone else your secrets!" The city's wealth was all stuck with a few rich people, and the king wanted everyone to have a shot at success. So, Arkad came up with seven simple "cures" to fix an empty wallet. Think of these as the first seven levels in the game of getting rich. Master these, and you'll be well on your way.


Cure #1: Pay Yourself First (The Golden 10% Rule)

This is the most important rule of all. It's the foundation of everything. Every time you get money—from your allowance, a part-time job, birthday gifts, anything—the very first person you pay is yourself. Before you buy a snack, before you get a new game, before you do anything else, you take at least 10% of that money and put it away for your future self.1 This isn't just about hoarding cash; it's about making your future a priority.

Real-Life Example: Let's say you mow your neighbor's lawn and get paid $20. The first thing you do is take $2 (that's 10% of $20) and put it in a special place. This could be a piggy bank, a jar you label "My Future," or even better, a savings account your parents help you open. That $2 is now off-limits for spending. It belongs to Future You. The other $18 is what you can use for your day-to-day stuff.

This might sound simple, but it's a total game-changer. Most people get paid, then pay for all their stuff (rent, food, fun), and then see if there's anything left to save. The secret is to reverse that order. Treat your savings like the most important bill you have to pay. The amazing thing is, most people who try this find they don't even miss the 10%. They get by just fine on the remaining 90%. This one habit is more than just a financial trick; it's a way of training your brain. It teaches you self-discipline and the power of delayed gratification. By choosing to secure your future before satisfying a short-term want, you're building a character trait that will help you succeed in all areas of life, from schoolwork to personal goals. You are sending a powerful message to yourself that your long-term well-being is the number one priority.


Cure #2: Master Your Spending (Needs vs. Wants)

Have you ever noticed that the more money you get, the more stuff you seem to need? If your allowance is $10 a week, you make it work. If it gets bumped up to $20, you suddenly find new things to spend that extra $10 on. The book calls this the trap of "necessary expenses" always growing to match your income, unless you fight back. The secret weapon in this fight is learning the difference between what you need and what you want.

Real-Life Example: You need a new pair of sneakers for gym class because your old ones have holes in them and your toes are sticking out. You want the $200 limited-edition Jordans that your favorite YouTuber just unboxed. Learning to tell the difference between these two things is a financial superpower. A need is something essential. A want is a desire. The book teaches that we have unlimited desires, and even the richest people can't satisfy all of them.

The best way to get this under control is to make a simple budget. For one month, just write down every single penny you spend. You'll be shocked to see how much money goes toward small wants—a soda here, a bag of chips there—that you completely forget about a day later. A budget isn't about telling yourself "no" to everything fun. It's about giving yourself the power to say "YES!" to the things that truly matter to you. It turns spending from a mindless habit into a conscious choice. By tracking your money, you can decide to cut back on the little things you don't really care about so you have more money to save for the big things you've been dreaming of. It's about taking control and telling your money where to go, instead of wondering where it went.


Cure #3: Get an Army of Golden Workers (Make Your Money Multiply)

Okay, so you're paying yourself first and you've got a growing pile of cash. Awesome! But just letting it sit in a jar is a rookie move. The real magic happens when you put that money to work. Arkad taught that every coin you save should be like a tiny worker that you send out into the world to earn more money for you. And the money those workers earn? Those are like their children, who can also go out and work for you. This is the incredible power of compound interest.

Real-Life Example: Imagine you save up $100. You put it into a savings account that pays you a little bit of money each year, called interest. Let's say you earn a 7% return. After the first year, you've earned $7. Now you have $107. Here's where the magic starts. The second year, you don't just earn interest on your original $100; you earn it on the whole $107. So you earn $7.49. Now you have $114.49. It's like a snowball rolling down a hill. It starts small, but it picks up more snow and gets bigger and bigger, faster and faster, all on its own. The sooner you plant this "money seed," the bigger your "money tree" will grow over time.

To see how powerful this is, check out this "Magic Snowball Effect" table. Let's imagine you start with $100 at age 12 and add another $100 every year, earning an average of 7% growth.

Age

Your Contribution This Year

Total Savings

Growth (at 7%)

End of Year Total

12

$100

$100.00

$7.00

$107.00

13

$100

$207.00

$14.49

$221.49

14

$100

$321.49

$22.50

$343.99

15

$100

$443.99

$31.08

$475.07

16

$100

$575.07

$40.25

$615.32

17

$100

$715.32

$50.07

$765.39

18

$100

$865.39

$60.58

$925.97

Look at that! By the time you're 18, you've only put in $700 of your own money, but you have over $925. That's more than $225 of free money your "golden workers" earned for you! Now imagine doing this for 40 or 50 years. That's how people build fortunes.


Cure #4: Guard Your Treasure (Don't Get Scammed)

Once you start building your treasure, you have to protect it. There will always be tempting offers and get-rich-quick schemes that promise to make you a millionaire overnight. Arkad learned this lesson the hard way. His very first investment was a total disaster. He gave all his savings to a friend who was a bricklayer, named Azmur, who was traveling to a faraway land to buy rare jewels. The plan was to sell them for a huge profit back in Babylon. The problem? Azmur was an expert on bricks, not jewels. He got scammed and came back with worthless pieces of glass. Arkad lost everything.

Real-Life Example: This happens all the time today. Maybe a friend at school tells you about a "guaranteed" way to make money with a new cryptocurrency they saw on TikTok. Or you see an online ad promising you can turn $50 into $500 in 24 hours just by signing up for a special course. These are almost always traps. The rule is simple: guard your treasure from loss by only investing in things you understand, and always seek advice from people who have proven experience with money. Don't ask a bricklayer about jewels. Don't ask your art teacher to help you build a gaming PC. And don't take financial advice from a random person on the internet.

This rule is about more than just avoiding scams; it's about learning to think critically. Before you part with your hard-earned money, you need to do your homework. Question the promises. Check the source of the information. Is the person giving you advice actually successful with money themselves? This process of investigation and questioning is a crucial life skill. It teaches you to make decisions based on facts and logic, not on hype or emotion. It's the best defense you have for protecting the wealth you work so hard to build.


Cures #5, #6, and #7 (The Long-Term Power Moves)

These next three cures are about thinking way, way ahead. They might seem like they're for adults, but understanding them now puts you light-years ahead of the game. Think of them as the ultimate power-ups for your financial future.

  • Cure #5: Own Your Own Space. The book advises that, eventually, owning your own home is a smart move. Instead of paying rent to a landlord every month (which is like throwing money away), you make payments on a mortgage, and at the end, you own a valuable asset. For you right now, this is a cool future goal to have. Imagine having your own ultimate gaming room or art studio that is 100% yours, and every payment you make is building your own wealth, not someone else's.

  • Cure #6: Build a Money Machine for Your Future Self. This is about planning for retirement. I know, that sounds ancient! But the idea is simple: you need to save and invest enough money so that one day, you won't have to work if you don't want to. Your investments will become a money machine that pays for your life. A great way to think about it is like planting a tree. You plant a tiny seed now (your 10% savings). You water it consistently over the years. By the time you're older, you have a giant, strong tree that drops "money-fruit" for you to live on, whether you're working or traveling the world.

  • Cure #7: Level Up Your Skills. This is the most important and actionable cure for you right now. The book makes it clear: the more you learn, the more you can earn. Your ability to earn money isn't fixed. You can increase it by becoming more skilled and more knowledgeable. Every new skill you learn—whether it's coding, video editing, public speaking, getting better at math, or learning a new language—is like adding a permanent power-up to your character in a video game. It makes you more valuable to others and opens up doors to better opportunities and higher income in the future.

These cures all work together in a powerful cycle. When you level up your skills (Cure #7), you increase your income. When your income goes up, the 10% you save (Cure #1) becomes a much bigger amount of money. When you have more money to invest, your army of golden workers (Cure #3) grows larger and your compounding snowball (your money machine from Cure #6) gets bigger, faster. Cure #7 is the accelerator pedal for the entire system. Your main job right now is to learn, so every bit of effort you put into school and developing your talents is a direct investment in your future wealth.


Part 2: The 5 Laws of Gold (The Pro-Gamer's Guide to Staying Rich)

Okay, so you've used the Seven Cures and your wallet is starting to get fat. You're on your way to becoming a money hero. But getting rich is only half the battle. Staying rich is the other half. This is where the Five Laws of Gold come in.

In one of the book's stories, Arkad's son, Nomasir, was given a bag of gold and a clay tablet with these five laws carved on it. His dad challenged him to go out into the world and prove he could manage wealth. Nomasir, being young and inexperienced, quickly lost all the gold his father gave him through bad deals and trusting the wrong people. But he still had the tablet with the laws. He started from scratch, followed the laws religiously, and ten years later, he returned to his father not just with the original amount of gold, but with three times as much. These are the advanced rules for protecting your treasure.

  • Law #1: Gold comes gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings. This is a powerful echo of Cure #1. It's so fundamentally important that it's the first cure and the first law. Saving at least 10% is the non-negotiable starting point for all wealth.

  • Law #2: Gold labors diligently and contentedly for the wise owner who finds for it profitable employment. This reinforces Cure #3. Your money needs a job. It can't just sit around. A wise owner puts it to work in investments where it can multiply.

  • Law #3: Gold clings to the protection of the cautious owner who invests it under the advice of men wise in its handling. This is a direct echo of Cure #4. You protect your money by listening to true experts—people who have a proven track record of success with money—not amateurs or schemers.

  • Law #4: Gold slips away from the man who invests it in businesses or purposes with which he is not familiar. This is the other side of Law #3. It's a warning against investing in things you don't understand.18 The famous modern investor Warren Buffett has a similar rule: "Never invest in a business you cannot understand." If you can't explain how it makes money to a 10-year-old, you probably shouldn't put your money in it.

  • Law #5: Gold flees the man who would force it to impossible earnings or who follows the alluring advice of tricksters and schemers. This is the ultimate warning against get-rich-quick schemes. If a deal promises massive, unrealistic returns with no risk, it's a trap. Gold runs away from greed and impatience.

If you think about it, the Seven Cures are your offensive strategy—they are the active steps you take to build wealth. The Five Laws are your defensive strategy—they are the rules you follow to protect that wealth from being lost. You need both to win the game of money. Many people, like professional athletes or lottery winners, get very good at the offense (making a lot of money) but fail at the defense and end up losing it all because they break these laws.


Part 3: The Final Bosses: Beating Debt and Bad Luck

Once you've mastered the basics, there are a couple of "final bosses" you'll encounter in your financial life: the idea of "luck" and the trap of debt. The wisdom from Babylon gives you the strategies to beat them both.

How to Make Your Own "Luck"

A lot of people think getting rich is all about being lucky. Arkad's students thought so, too. They complained that some people just have all the luck. But Arkad explained that "good luck" isn't something that just randomly falls from the sky. Good luck is what happens when preparation meets opportunity. The biggest enemy of luck is procrastination—waiting around and not taking action when a good chance comes along.

Real-Life Example: You've been following the rules and diligently saving your money for months (that's the preparation). One day, the new gaming console you've been dreaming of goes on a surprise 25% off flash sale for 24 hours only (that's the opportunity). Because you were prepared with your savings, you can jump on that deal immediately. You just got "lucky"! Meanwhile, your friend who hasn't been saving sees the same sale but can't do anything about it. They missed out. The Goddess of Good Luck, as the book calls her, favors people who are ready to act. By being prepared, you put yourself in a position to take advantage of opportunities that others have to pass up.

The Escape Plan for Debt

This is a lesson that will become more important as you get older, but it's a critical secret to know. Debt is when you owe money to other people. The book describes it as being a "slave" to someone else's money, because a portion of your future earnings already belongs to them. If you ever find yourself in debt, the book provides a clear escape plan: the 70/20/10 plan. You live on 70% of your income, you use a dedicated 20% to aggressively pay back your debts, and—this is the crucial part—you still pay yourself first with your 10%.

Real-Life Example: Let's say when you're older you make $1,000 a month. You owe $200 on a credit card. Instead of stopping your savings, you would put $100 (10%) into your savings/investments first. Then you'd use $200 (20%) to pay down that debt. The remaining $700 (70%) is what you live on.

This strategy is brilliant for a very important reason. Paying off debt can feel like a long, slow grind where all your hard work is just going to someone else. It can be easy to lose hope and give up. But by continuing to save that 10% for yourself, you are still actively building your own future. You get to see your own wealth grow even while you're paying off what you owe. This provides the motivation and the psychological boost you need to stick with the plan until you're finally free. It ensures you're always making progress for yourself.


Your Action Plan: Key Takeaways to Start Today

Reading this is great, but taking action is what really counts. Here are five simple things you can do right now to start your journey to becoming the richest kid you know.

  • 1. Start Your 10% Fund NOW: Don't wait until next week or next month. Get a jar, an envelope, or ask your parents to help you open a savings account. The very next time you get ANY money, put 10% of it in there immediately. This is your first and most important step.

  • 2. Track Your Spending for One Week: For just seven days, use a small notebook or the notes app on your phone to write down everything you spend money on. Every single thing. This simple exercise will open your eyes and show you exactly where your money is going.

  • 3. Pick One Skill to "Level Up": Choose one thing you want to get better at this month. It could be a school subject you find tricky, a sport, a video game, or learning a free skill online like basic coding or graphic design. Spend a little time on it each day. Remember: more skills = more future earnings.

  • 4. Ask a "Wise Person" for Advice: The next time you're thinking about making a big purchase (for you), practice Law #3. Ask an adult you trust who you know is good with money (like a parent, grandparent, or mentor) what they think about it. Get used to seeking wise counsel.

  • 5. Share This with a Friend: The best way to truly learn and remember something is to teach it to someone else. Tell one of your friends about the Golden 10% Rule. When you explain it to them, it will lock it into your own brain even better.


Join the Adventure with Chintan

Learning about money is a journey, not a destination. The secrets from ancient Babylon are just the beginning of your adventure! If you want to keep leveling up your money skills with more tips, tricks, and guides just like this one, you need to join our crew.

Follow Chintan, and let's get rich together!


Comments

bottom of page