The Richest Man in Babylon

Library · Personal finance

• Author: George S. Clason
• FinSimLab rating: 4/5
• Reading: Easy
• Finance level: Beginner
• Published: 1926

Basic saving principles told as parables set in ancient Babylon.

What it covers

Through short stories, Clason sets out simple rules: keep part of what you earn, put that money to work and avoid loans or investments you do not understand. The language is old-fashioned and some advice is generic, but the idea of paying yourself first is still the base of any savings plan.

What you will learn

• Why it pays to set aside a fixed share of your income before spending.
• How saved money earns more money over the years.
• Why to be wary of investments you do not understand.

Who it is for

People who do not save regularly yet and want a short book to start with.

Concepts

Saving, Budgeting, Long term

What you will not learn

How to invest today: it does not cover index funds, fees or taxes.

Already read a book on this?

• It shares saving part of what you earn with The Millionaire Next Door. If you have read The Millionaire Next Door, this one mainly adds the basic rules as short stories. The Millionaire Next Door

We suggest you continue with

• The Psychology of Money (in the "Start from scratch" path)

Related Academy guides

• The 50/30/20 rule: how to budget your money
• Emergency fund: how much you need and where to keep it
• What is compound interest and how does it grow your money?

Put it into practice

• Compound interest calculator

More personal finance books

• Your Money or Your Life
• I Will Teach You to Be Rich
• The Total Money Makeover
• The Millionaire Next Door
• Rich Dad Poor Dad
• Die With Zero

Descriptions written by FinSimLab for educational purposes. They do not summarise the books and are not investment advice.