13/08/2026
The Richest Man in Babylon
by George S. Clason is basically a collection of simple stories teaching you how to become financially successful.
Think of it as “money lessons for a 12-year-old.”
🏺 The main character: Arkad
The most famous story is about Arkad, a man who started poor but eventually became the richest man in Babylon.
His friends ask:
“How did you become rich when we all started with almost nothing?”
Arkad explains his rules.
💰 Rule #1: Pay yourself first
This is probably the most important lesson in the entire book.
Imagine you receive ₱1,000.
Most people do this:
₱1,000 → spend everything → ₱0 left
Arkad says:
₱1,000 → keep ₱100 → spend ₱900
That ₱100 is your money.
Not money for food.
Not money for shopping.
Not money for bills.
It’s money you keep so that it can eventually make more money for you.
The famous principle is:
“A part of all you earn is yours to keep.”
For a child, think:
Every ₱100 you receive → keep ₱10.
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🪙 Rule #2: Control your spending
Here’s the tricky part.
You might say:
“But I NEED the whole ₱1,000!”
Arkad says: No.
There are things you need and things you want.
For example:
Needs
🍚 Food
🏠 Housing
💡 Electricity
🚗 Transportation
Wants
🎮 New games
👟 Expensive shoes
📱 New phone
🍔 Eating out
🛍️ Shopping
The problem isn’t enjoying things.
The problem is when your wants become bigger than your income.
So if you earn ₱50,000, don’t automatically increase your lifestyle to ₱50,000.
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🌱 Rule #3: Make your money grow
Saving money is only the beginning.
Imagine you plant a ₱1,000 seed.
You don’t want to keep digging it up every week.
You want it to grow.
That’s what investing does.
Your ₱1,000 might eventually become:
₱1,000 → ₱1,100 → ₱1,210 → ₱1,331 → …
This is called compound growth.
Your money starts producing money.
Then that new money produces more money.
It’s like planting a tree:
🌱 → 🌿 → 🌳 → 🌳🌳
The longer you leave it growing, the bigger it can become.
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🧠 Rule #4: Learn before you invest
This is a HUGE lesson.
Suppose someone tells you:
“Give me ₱100,000. I’ll make it ₱200,000 in one month!”
You get excited.
But Arkad would say:
STOP.
Do you understand the investment?
Do you understand the risks?
Do you understand the person you’re giving money to?
If you don’t understand something, don’t put your money into it just because someone promises you a big return.
In modern language:
Don’t invest in something you don’t understand.
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🛡️ Rule #5: Protect your money
Making money is difficult.
Losing it can take five minutes.
Imagine you saved ₱500,000.
Then someone says:
“I have a guaranteed investment. Give me everything!”
You give them the money.
They disappear.
💥 ₱500,000 → ₱0
The book teaches you to protect your wealth from bad investments, scams, excessive risk, and people who don’t know what they’re doing.
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💼 Rule #6: Increase your ability to earn
This is one of my favorite lessons from the book.
Don’t only ask:
“How can I save more?”
Also ask:
“How can I become more valuable?”
Imagine two people.
Person A
Earns ₱30,000/month and never learns anything new.
Person B
Earns ₱30,000/month but spends time learning:
• sales
• leadership
• technology
• investing
• communication
• business
Five years later, Person B might be capable of earning ₱60k, ₱100k, or ₱200k+.
So one of the best investments you can make is:
Invest in yourself.
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🏃 Rule #7: Don’t procrastinate
The book also teaches:
When you know what you should do, do it.
If you know you should save ₱10,000:
Don’t say:
“I’ll start next month.”
If you know you should learn a skill:
Don’t say:
“I’ll start next year.”
Because “later” is one of the most expensive words in personal finance.
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🎯 The whole book in ONE example
Imagine you’re 12 years old and your parents give you ₱1,000 every month.
Instead of spending all ₱1,000:
Step 1
Keep ₱100.
Step 2
Spend the remaining ₱900 wisely.
Step 3
Put the ₱100 somewhere productive.
Step 4
Learn how money works.
Step 5
Avoid stupid risks.
Step 6
Keep improving your ability to earn.
Step 7
Repeat this for many years.
Eventually:
Your money starts working for you instead of you working only for money.
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🏆 The 7 Laws of Money
If you remember nothing else from the book, remember these:
1. Save at least 10% of everything you earn.
2. Control your spending.
3. Make your savings grow.
4. Protect your wealth.
5. Buy/invest only in things you understand.
6. Increase your ability to earn.
7. Start now and be consistent.
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And here’s the BIG idea
The book isn’t really saying:
“Become rich.”
It’s saying:
“Build good money habits.”
Because getting rich is usually not one gigantic decision.
It’s thousands of small decisions repeated for years.
₱100 saved today doesn’t make you rich.
But saving, investing, learning, and protecting money for 20–30 years can completely change your life.
“Whenever money comes to you, keep some, don’t waste the rest, make the money you kept grow, protect it, and keep learning how to earn more.”
