George S. Clason · 1926 · Personal finance
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George S. Clason began writing parables set in ancient Babylon in the 1920s, and banks and insurance companies distributed them as pamphlets to teach basic money habits. Collected as a book, they remain popular for their simple, memorable lessons.
The central figure is Arkad, a humble scribe who became the wealthiest man in the city. He explains to friends that wealth begins by keeping a part of everything you earn, at least a tenth, before spending the rest. Other stories cover controlling expenses, putting savings to work, avoiding foolish investments, owning a home, providing for old age and increasing your ability to earn. Later tales show a debtor turning his life around with a disciplined repayment plan, and a slave rising to prosperity through hard work.
Key insights
- Pay yourself first. Set aside at least a tenth of every income before paying bills, and treat that saving as money you do not touch.
- Separate necessary expenses from desires. Spending tends to rise to match income unless you budget deliberately and question each purchase.
- Put savings to work so they earn income, then reinvest that income. Money kept working compounds, while money left idle or spent does not.
- Protect your capital before chasing returns. Take investment advice from people experienced in that field, not from well-meaning friends outside it.
- To clear debt, one character lives on seven tenths of his income, saves one tenth and divides the remaining two tenths among his creditors until they are repaid.
Read it if you want simple, lasting principles of saving and money management told through short, memorable stories.