*the 2014 book of the month club list is updated here Book Club with Lawrence Tam 2014

The Richest Man in Babylon is a book about solving a timeless problems among millions of people across centuries of time….. How to Become and Stay Wealthy


Live Hangout April 8th, 2014
The Richest Man In Babylon

How  does one acquire wealth?


The Richest Man In Babylon book was written by George Samuel Clason. It was written in the 1920s, right before the great stock crash of 1929.


Clason references the ancient city of Babylon, a very wealthy city that was built on a desert. Though the land around the city had nothing going for it, Clason describes how the knowledge of the people, using great feats of engineering, routed a nearby river and created an abundance of crops. This knowledge actually created the city's wealth, and flung it far into the stratosphere of human achievement.


The The Richest Man In Babylon book begins with a story of two paupers who live in Babylon, wondering how it is that they live in squalor, while people around them enjoy great wealth. They decide to ask a friend of theirs who is the richest man in all of Babylon, Arkad.


Arkad starts by outlining the Seven Cures for a Lean Purse. They are super simple, but effective. The point you must remember is that this information can apply as much to you and your family now, as it did to Babylonians over 8,000 years ago.

7 Cures For A Lean Purse

1. Start thy purse to fattening. (Save 10% Of Your Income)

The first concept is simple – save 10% of your income. – BURN THAT IN YOUR BRAIN 🙂

*is it enough?????
Most don't even do that.

Start with AT LEAST 10% of what you earn… ANYONE can do this regardless of what you make right now.

Saving provides three benefits.

First, it gives you some instant gratification as your savings grows.

Secondly, it pulls you away from the edge of existence.

And third having a savings attracts more money to you. Arkad describes that money attracts money, while empty wallets attract more emptiness. Saving is different from hoarding – saving puts money away and still allows you to enjoy life.


2. Control thy expenditures.

Do not spend money on items you don't need.

Arkad makes a point that not everyone earns the same amount of money, yet most people will be broke. He says this is because people will buy things that they want, items that they feel that they need. Their needs increase with their income.

 A budget protects you against desires that deplete your income, which causes you worry and stress.


3. Make thy gold multiply.

Investments – these are the true wealth of any individual, not the cash in their bank accounts. Put your money and assets to work so that they continuously bring a return on investment and a “stream of wealth that shall flow constantly into thy purse.”

4. Guard thy treasures from loss.

As your wealth grows, so should your investments. But here is a warning that warrants its own spotlight. People will approach you will all kinds of opportunities that look good, but they aren't. Go to people who know what they are doing.

Don't invest everything you have into one opportunity.

Make sure you go to a reliable source in their field.


5. Make of thy dwelling a profitable investment.

Own your own home. You invest all of your time and money into your own place, and create your own environment. You aren't paying someone else up to a third of your monthly income for housing. You are investing all of your own money back into your own family.

— Now some might say the house you live in isn't an investment… and some strategies go against doing this… and rather pay rent. I rather put the money into the mortgage and get equity.

If you plan to rent.. it's super important you know why…. If it's to save the rest and invest.. cool. If it's just to live in a nicer place… hmmm
Or is it cause you move too much… that makes more sense.



6. Insure a future income.

Most people hate to plan for their retirements. Even more hate planning for their death, while the vast majority ignore it entirely. Yet it is important to protect yourself and your family against poverty when you get older, are less able to work. Think about the future by preparing now.


7. Increase thy ability to earn.

  • Learn skills to increase your productivity.
  • Learn skills to increase the quality of your work.
  • Learn skills that are rare but highly sought after.
  • Keep learning to earn.

I remember my professors at the University of Texas at Austin (college isn't for everyone but I loved how much I grew up in college) said…

“You will learn HOW TO LEARN”….
That is a pretty important step.. you NEVER stop learning

When you stop growing you are dead… period.


Once you follow the seven (7) cures to a lean purse, you will have quite a bit of money.

Does the story end there?

 No, it does not.


“A fool and his money are soon parted,” as the saying goes.

Don't be stupid with your money.


The second part of the The Richest Man In Babylon book, The Five Laws of Gold, deals with what to do with your wealth to not only keep it growing, but to protect it.


Knowledge is key to wealth. Not necessarily college degrees, but a financial knowledge.


Without further ado the The Five Laws of Gold are as follows:

The 5 Laws of Gold


1. Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family. (Money comes to those who save).


2. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. (Money works hard if you put it to work).


3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling. (Money stays with you if you protect it by listening to someone who knows what to do with it.)


4. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep. (Money is lost to bad investments or unskilled investors.)


5. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment. (Money is lost to unrealistic expectations put into your head by scammers or investing it poorly.)


The big takeaway from The Richest Man In Babylon book is that creating wealth is simple. It is not always easy, it is not for people who are too emotional or impulsive with their money nor is it for people who are uneducated about money. Follow the steps above and see how quickly you begin to build your own estate.

Wealth is all around us.

Learn and apply the laws of wealth and there will be no limit to how much wealth you can have for your own family.

 I hope you enjoyed The Richest Man In Babylon book and reading this article.

Follow me on my personal FB profile to learn more about life and living awesome 😉

Lawrence Tam

Funny dude who grew up in Houston, and retired from Mechanical Engineering at the age of 33. Has 3 kiddos and happily married and marketing full time since 2012. Learn how to take control of your life and health through a simple challenge to keep you healthier one day at a time - Click Here to Learn More.


Ellen Macieiski · June 12, 2015 at 7:32 pm

Great video, LT

spooon · April 10, 2014 at 2:17 pm

DavidBell1  thanks for stopping by 😉

DavidBell1 · April 8, 2014 at 3:56 pm

Outstanding review.  You put some real food for thought on the table.  

MiguelJarrin · April 8, 2014 at 3:21 pm

Great review.. I loved it… It served to install some things I forgot about this book..
Learn, Do, Teach…

Juli McDonough · April 8, 2014 at 11:35 am

Thanks for the recap/review! Great stuff 🙂

alecia_mlmleads · April 8, 2014 at 11:23 am

Awesome goals to put together. This takes time to think about and be clear of what you want.

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