Commentary on the book
We're providing our commentary for each chapter along with the audio to help readers/listeners with grasping the content and how it can be applied in one's life. Read the section or listen to the audio file before reading our commentary. Make notes and organize your thoughts so that you can collaborate with us on the concepts.
commentary / noun
an expression of opinion or offering of explanation on a particular subject |
The Man Who Desired Gold - click here for the audio (15 min 40 sec)
Bansir, the chariot builder, sat dejectedly on a low wall outside his house. As he surveys his modest property, his wife pops out giving him a disapproving “you should be working” look. As his glance moves to the hustle and bustle of the surrounding city, his friend Kobbi the musician walks up. Noticing Bansir is sitting around instead of working, Kobbi assumes things are going well for Bansir and asks to borrow two shekels for the Nobleman’s Feast.
Bansir, the chariot builder, sat dejectedly on a low wall outside his house. As he surveys his modest property, his wife pops out giving him a disapproving “you should be working” look. As his glance moves to the hustle and bustle of the surrounding city, his friend Kobbi the musician walks up. Noticing Bansir is sitting around instead of working, Kobbi assumes things are going well for Bansir and asks to borrow two shekels for the Nobleman’s Feast.
Bansir explains that he doesn’t have two shekels to lend, not even to his best friend. Kobbi asks why, if Bansir is in such dire straights, he isn’t working on the half-completed chariot in his workshop. Bansir replies that it’s due to a dream he had the previous night. In the dream, he had all the money he could want, he was able to give freely to the poor and purchase all his heart desired. Upon waking, he came back to the realization that he had no money at all. He's been sitting glumly on the wall ever since. Bansir goes on to explain that both he and Kobbi had worked hard their entire lives, and made a decent amount of money over the span of years, and yet at this point had little to show for it. How, then, could two educated men, who have worked so hard, be at a point in their life where they have attained so little?
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"Does working harder or longer truly increase your ability to have a better quality of life?" |
Kobbi sympathizes with Bansir’s situation. He, too, has worked hard his whole life playing his lyre (musical device) and has very little to show for it. Kobbi mentions that he passed their mutual friend, Arkad, in the streets earlier that day. Remarking on the fact that his purse never empties, Bansir has an epiphany. It’s not just a sum of gold that he desires, but ever flowing source of gold or income. Not just any income, but an income that will continue to accumulate regardless of whether or not he is working or traveling ("residual-income"). Then Kobbi has an epiphany. He realizes that the reason neither of them are wealthy is because they never sought it. They decided that, since they both knew Arkad, they would go to him and ask him to teach them his methods on accruing wealth.
Commentary
There are many lessons conveyed in the dialogue between Kobbi and Bansir. Making money and earning a living is not attaining wealth. In fact, they are opposite in nature. Each of us have a span of time from which we can labor and work for a living. What separates the wealthy from the poor? It's what you do with that time that makes the difference. If you work your entire life on endeavors that make you an income but not wealth, then you will have little to show for your efforts at the end of your life. The first thing one must do is realize that the strategy that 95% of the population deploys, will not automatically bring wealth and abundance into your life. This story points out the solution. If you do what broke people do, you will have what broke people have. If you do what wealthy people do, you will have what wealthy people have. They knew someone who was wealthy and they made the choice to take action and pursue the knowledge that this wealthy person had. Have you ever heard the definition of insanity? Doing the same thing over and over, yet expecting different results. If you keep doing what you've always done, you'll keep getting what you've always gotten. If you truly want a change in your life from a financial standpoint, learn what the wealthy are doing and dis-associate yourself from the broke mentality of those around you. How can you talk money and wealth with your friends and family, when all your friends and family know is being broke?
Talking Points
Exercises
There are many lessons conveyed in the dialogue between Kobbi and Bansir. Making money and earning a living is not attaining wealth. In fact, they are opposite in nature. Each of us have a span of time from which we can labor and work for a living. What separates the wealthy from the poor? It's what you do with that time that makes the difference. If you work your entire life on endeavors that make you an income but not wealth, then you will have little to show for your efforts at the end of your life. The first thing one must do is realize that the strategy that 95% of the population deploys, will not automatically bring wealth and abundance into your life. This story points out the solution. If you do what broke people do, you will have what broke people have. If you do what wealthy people do, you will have what wealthy people have. They knew someone who was wealthy and they made the choice to take action and pursue the knowledge that this wealthy person had. Have you ever heard the definition of insanity? Doing the same thing over and over, yet expecting different results. If you keep doing what you've always done, you'll keep getting what you've always gotten. If you truly want a change in your life from a financial standpoint, learn what the wealthy are doing and dis-associate yourself from the broke mentality of those around you. How can you talk money and wealth with your friends and family, when all your friends and family know is being broke?
Talking Points
- Bansir had a dream that he was wealthy...but woke up broke. He had an epiphany.
- Who wouldn't want a better quality of life?
- Most people don't know "how" to change their situation or worse many don't know "why" they should.
- His broke friend (Kobbi) offered the only solution he knew - which was to keep working (finish the chariot).
- Broke mentality: if you need more money ....work harder and longer? Is this really the BEST way to improve the quality of your life?
- Bansir knew that wouldn't help him acheive the better life that he dreamed of.
- The first step toward achieving financial wealth is to realize (1) what is wealth (define-it), (2) you will not be able to get it with a job, (3) you must seek out knowledge (know-how) from others who know about having it.
Exercises
- Define what your lifestyle would look like if you had as much money as Arkad.
- Try to brainstorm three ways you can acheive that lifestyle in 5 years or less.
- List all the people you know that enjoy this type of lifestyle that you could go to.
- Define the following terms: J.O.B. / Wealth >compare these two as destinations<
The Richest Man In Babylon - click here for the audio (27 min 20 sec)
Arkad was a famous man in Babylon. Famous not only for his wealth, but for his generosity. Kobbi and Bansir studied under the same teachers as Arkad in their youth. All three of them seemed to be relatively equal in both mind and body, yet Arkad attained far more wealth and success than the other two. Curious as to why this was so, Kobbi and Bansir approach Arkad and asked him.
In reply, Arkad states that both Kobbi and Bansir have “either failed to learn the laws that govern the building of wealth, or they have failed to observe them.”
Arkad was a famous man in Babylon. Famous not only for his wealth, but for his generosity. Kobbi and Bansir studied under the same teachers as Arkad in their youth. All three of them seemed to be relatively equal in both mind and body, yet Arkad attained far more wealth and success than the other two. Curious as to why this was so, Kobbi and Bansir approach Arkad and asked him.
In reply, Arkad states that both Kobbi and Bansir have “either failed to learn the laws that govern the building of wealth, or they have failed to observe them.”
Arkad explains that when he was younger, he looked around and noticed all the fine things that wealth could provide and decided that he wanted this for himself. Being from a relatively modest family with several brothers and sisters, Arkad knew that there was no real chance at an inheritance. He first realized that he didn't know anything about money or wealth and that he sought out others who did. He knew he had to become knowledgeable about the topic of money and wealth. He then tells Kobbi and Bansir the tale of how he was able to learn these things, and how they, too can learn.
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"To go from Broke to Wealthy you must first realize where you are and look at what you have and don't have. Then you have to make a decision to do something about it" |
The story shifts to when Arkad was a scribe (his-J.O.B.). He toiled night and day, etching into clay tablets various things for his customers. He worked very hard, and yet like Kobbi and Bansir, he had little to show for it.
One day Algamish, the money lender, came in and needed a copy of the Ninth Law in two days. He said he would pay two coppers for it if it were finished within the time frame. Arkad failed to meet the deadline and the money lender was upset. Arkad made a deal with the money lender that if he were able to finish the tablet by the next morning, the money lender would teach him how he could also become wealthy. The money lender agreed and by morning the tablet was finished.
One day Algamish, the money lender, came in and needed a copy of the Ninth Law in two days. He said he would pay two coppers for it if it were finished within the time frame. Arkad failed to meet the deadline and the money lender was upset. Arkad made a deal with the money lender that if he were able to finish the tablet by the next morning, the money lender would teach him how he could also become wealthy. The money lender agreed and by morning the tablet was finished.
The money lender told Arkad that he learned the secret to being wealthy when he learned that a part of all he earned was his to keep. Confused, Arkad asks, “Is not all the money I make mine to keep?” The money lender explains that the money Arkad makes is spent on things like food, sandals and clothing; thus he is working for others, not himself. He goes on to tell Arkad that every piece of gold he saves should be used to make more gold, and the gold after that, and so on. To begin, he instructed Arkad to save one-tenth of his income and use that to pay himself.
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"What you earn from your labor flows into your account. Who determines where it goes from there?" |
One year later, the money lender returns and asks Arkad if he had taken his advice. Arkad replies that he saved one-tenth of all he earned for a year, and gave it to the brickmaker who was going to use it to purchase jewels cheaply from the Phoenicians which could in turn be sold for a profit in Babylon. The money lender explains to Arkad that he made a foolish mistake. Why would he trust a brickmaker to be able to purchase jewels? Why not ask a jeweler who’s business it is to deal in such things? The money lender is proven correct when the brickmaker returns with useless shards of glass, not jewels, having been swindled in Phoenicia. ("collaborate with those who understand investing money and leveraging it")
"Save a portion of what you earn, so that you can LEVERAGE it and use it as the source for building wealth." |
Another year later, the money lender returns and asks Arkad about his progress. This time, Arkad explains that he purchased bronze for a shield maker, and that every four months he is paid a dividend on his investment. Upon being paid, Arkad treats himself to a fine feast. The money lender laughs at Arkad, exclaiming that he is “eating the children of his savings.” The money lender explains that the money made from Arkad’s initial investment should in turn be invested, and the money after that, and so on. That way, he will eventually reach a point where he can feast as much as he wants without taking away from his income. ("disposable income")
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Algamish the money lender returned to Arkad one last time two years later. He asks Arkad about his business ventures, and Arkad replies that he is not yet making the money he desires, but his investment is making money, and it’s children, and it’s children’s children. Pleased with Arkad’s progress and grasp of the concept, Algamish the money lender makes Arkad his partner in his estate.
Commentary
There are FOUR important concepts on attaining wealth from this chapter.
1. Discover that wealth starts with Seed-Money.
2. Learn how to Save at least 10% of your income.
3. Learn how to Invest your Seed-Money.
4. Learn how to invest wisely.
There are FOUR important concepts on attaining wealth from this chapter.
1. Discover that wealth starts with Seed-Money.
2. Learn how to Save at least 10% of your income.
3. Learn how to Invest your Seed-Money.
4. Learn how to invest wisely.
Wealth Begins with Seed-Money.
Look at wealth for a moment as a tree. You don't just wake up one day and find it right in front of you. A tree begins with a small seed. That seed is planted into fertile soil and eventually over-time, the seed turns into a small tree, which eventually turns into a giant tree. Success and Wealth are seeded and built over time in the same way. ("shark tank") Saving 10% of your income. The author addresses the fact that we are all conditioned to spend 100% of the income we bring in from our J.O.B. If you spend what you make, you are just getting by. The author suggests adjusting your spending habits and saving at least 10% of your income for Seed-Money. At first, you may have to live a little below your means. There may be a few luxuries you have to do without. But, as you continue to discover in this book, it will be worth it in the long run. Investing your Seed-Money. The second important concept is the investment process itself. Simply saving money is great, but it is nearly impossible to SAVE yourself into wealth. You must invest your seed-money and make it earn even more money, which should also earn more. Remember, you have a tree to grow. When money is properly invested it should continue to generate money and if you manage that money properly you can grow your money exponentially until you reach a point where you acheive two key levels of wealth. (1) passive income and (2) disposable income. Passive income is where money continues to come into your bank account without you having to labor to generate it. This is also called residual income. Disposable income represents the point in which you have enough money leveraged into investments, we call this principle, that you can increase your lifestyle consistently going forward without touching your principle investments. In these two scenarios you have both time and money, at the same time. (draw out diagram) Investing Wisely. Lastly, saving and investing are pointless unless you invest wisely. When Arkad gave his money to the brickmaker to buy jewels, he was investing foolishly because brickmakers typically are not experts on jewels. He was rightfully rewarded with failure for this mistake. The second time around, he invested his money with someone who knew how to use it: the shield maker. The shield maker was able to purchase good bronze with Arkad’s money and make it into shields which could then be sold at a higher price. The first challenge you may face when you begin saving your seed-money, is knowing when to pull it out of savings and leverage it. The solution is not presented in this chapter, it is however discussed in later chapters. There's finding the right investment vehicle and then there is having the discernment to know how much of your own funds to invest. The right investment vehicle would clearly have evidence of it's ability to generate a significant return-on-investment. Once you find the right investment vehicle, don't throw all your money into it. Instead, do what the wealthy do. The wealthy come together and equally commit portions of their principle savings into various investment vehicles. While you're saving money, start looking for others who can get on the same plan as you. Build a team of collaborators a master-mind group. The best way to make smarter decisions is to either find or build a group of like-minded people who all want to build wealth. Plan, organize and collaborate with these people. This is good for many reasons. You increase your intellect as a group thinking versus as an individual. You must take care to ensure that you and your peers have a common goal, to become wealthy, but also the same philosophy and work-ethic. Together, you can run pros and cons when investment vehicles are identified. If you discover an investment that needs $100,000, for example. Consider how long it took you to save that much money. Let's say, in this example that it took you five years to save. You wouldn't want to risk 100% of it would you? Instead of pouring 100% of that into that investment vehicle, regardless of the potential return, you and 9 other collaborators each put in $10,000. If the venture succeeds, you can repeat it. If it fails. You have lost only 10% of your seed-money. |
Key Points
- Where does wealth really come from? Education? A Career or J.O.B.?
- It starts by understanding how money can be leveraged/invested or "grown" like a tree.
- Realize that wealth, like a tree starts small and it's how you grow it that will determine what it turns into.
- Realize that you have an income from your J.O.B. and that you control the flow of money from that income.
- You must redirect at least 10% of your income into a savings account. This is the seed-money, the beginning money that will start your wealth tree.
- Instead of trying to figure it out on your own, find other like-minded people who understand the laws of money and wealth. Learn from them, do what they do. 2ND TIME THIS ACTION HAS BEEN SUGGESTED.
Exercises
- Calculate what 10% of your monthly/annual income would be and multiply that by 5 years. How much would you have?
- Describe the differences between income that comes from a J.O.B. and income that is passive.
- Describe disposable income. Write out or Draw a diagram that represents your understanding of disposable income.
- Describe at least 3 ways you could generate a passive/residual income.
Seven Cures For A Lean Purse - click here for the audio (42min)
King Sargon returns to Babylon victorious from his campaign against the Elamites. His Chancellor comes to him stating that after all of his previous work building canals and temples, somehow the people are unable to support themselves. Most of the money is in the hands of very few men in the city and as a result, the shops are suffering and laborers are going unpaid.
When King Sargon asks his Chancellor why so few have been able to accrue so much, the Chancellor replies, “Because they know how”. The King decides that this knowledge these few men have should be in the hands of all the people. He sends for the richest man in Babylon, Arkad. The King asks if it would be possible to teach the knowledge of attaining wealth to others, and Arkad replies that it is. Delighted at the opportunity to serve his king and fellow men, Arkad agrees to teach a class of one-hundred men his methods, and these men would in turn serve as teachers to others. Arkad calls the methods the Seven Cures For A Lean Purse.
The first cure: Start thy purse to fattening - click here for the audio (5min 09 sec)
Arkad tells the men to spend only nine of every ten coins they make. This single coin saved will begin to fatten the purse, and each subsequent coin saved will continue to do so.
The second cure: control thy expenditures - click here for the audio (5min 25 sec)
The men ask Arkad how they can save one-tenth of all they make and still be able to purchase the necessities. Arkad explains that while all the men present make different amounts of money, each man’s purse is equally empty. He states that to each man, “Necessary expenses" will always grow to equal our incomes unless we protest to the contrary.” Meaning that necessary expenses and desires are often confused. In order to control expenditures, an understanding must be reached between what’s desired and what’s necessary.
The third cure: make thy gold multiply - click here for the audio (5min)
This third cure deals with investing your saved money. Arkad makes a distinction here between the money a man has in his purse, and the income he builds. He states that wealth is not the coin you have on you, but the coin you have invested that yields an income. Arkad tells the story of a farmer who, when his son is born, gives a money lender ten pieces of silver. He asks that it be lent out, and that the interest gained upon it in turn be lent out, compounding it. When the son was twenty years old, the farmer went to the money lender to see that his initial investment of ten silver pieces had grown to thirty-one. Since his son didn’t need the money, he allowed the money lender to keep it and continue as before. Once the son reached fifty years, he removed his money from the lender’s business to find he now had one hundred sixty-seven pieces of silver.
The fourth cure: guard thy treasures from loss - click here for the audio (3 min 46 sec)
As a man begins to acquire gold, he will be beset by temptations that he could make even larger sums of money through riskier venues. The first thing you must do when investing is to make sure your investment is secure. If it’s loaned to a person, make sure they are capable of paying it back. If it is invested in a business venture, be sure that the receiver of the loan is wise in the ways of the particular business, otherwise the risk of loss is much greater.
The fifth cure: make of thy dwelling a profitable investment - click here for the audio (3 min 23 sec)
Arkad explains to the men that it’s a wise investment to own your own home. The reason for this is that when you rent a home, you pay out money and continue to rent. When you borrow money to purchase a home, each payment you make reduces your debt by some, and eventually you’re left with a home that you own. When you rent, whether you stay or not, no matter what you pay you end up with nothing in the end.
The sixth cure: insure a future income - click here for the audio (4 min 58 sec)
The sixth lesson Arkad teaches is to make sure you have money to provide for yourself when you’re old, or for your family should you be unable to continue doing so. He says that making investments now that will slowly build and yield an income many years down the road is a good idea, because when the time comes that you can’t work anymore you will have money to live.
The seventh cure: increase thy ability to earn - click here for the audio (6 min 55 sec)
In the final cure, Arkad tells his students that in order to make more money, you must be better at what you do. Whatever your job is, people will pay more for higher quality and better service. As you are paid more, you will be able to save more and subsequently invest more. Also, as you invest your savings, you should endeavor to learn more and increase your knowledge of investing.
King Sargon returns to Babylon victorious from his campaign against the Elamites. His Chancellor comes to him stating that after all of his previous work building canals and temples, somehow the people are unable to support themselves. Most of the money is in the hands of very few men in the city and as a result, the shops are suffering and laborers are going unpaid.
When King Sargon asks his Chancellor why so few have been able to accrue so much, the Chancellor replies, “Because they know how”. The King decides that this knowledge these few men have should be in the hands of all the people. He sends for the richest man in Babylon, Arkad. The King asks if it would be possible to teach the knowledge of attaining wealth to others, and Arkad replies that it is. Delighted at the opportunity to serve his king and fellow men, Arkad agrees to teach a class of one-hundred men his methods, and these men would in turn serve as teachers to others. Arkad calls the methods the Seven Cures For A Lean Purse.
The first cure: Start thy purse to fattening - click here for the audio (5min 09 sec)
Arkad tells the men to spend only nine of every ten coins they make. This single coin saved will begin to fatten the purse, and each subsequent coin saved will continue to do so.
The second cure: control thy expenditures - click here for the audio (5min 25 sec)
The men ask Arkad how they can save one-tenth of all they make and still be able to purchase the necessities. Arkad explains that while all the men present make different amounts of money, each man’s purse is equally empty. He states that to each man, “Necessary expenses" will always grow to equal our incomes unless we protest to the contrary.” Meaning that necessary expenses and desires are often confused. In order to control expenditures, an understanding must be reached between what’s desired and what’s necessary.
The third cure: make thy gold multiply - click here for the audio (5min)
This third cure deals with investing your saved money. Arkad makes a distinction here between the money a man has in his purse, and the income he builds. He states that wealth is not the coin you have on you, but the coin you have invested that yields an income. Arkad tells the story of a farmer who, when his son is born, gives a money lender ten pieces of silver. He asks that it be lent out, and that the interest gained upon it in turn be lent out, compounding it. When the son was twenty years old, the farmer went to the money lender to see that his initial investment of ten silver pieces had grown to thirty-one. Since his son didn’t need the money, he allowed the money lender to keep it and continue as before. Once the son reached fifty years, he removed his money from the lender’s business to find he now had one hundred sixty-seven pieces of silver.
The fourth cure: guard thy treasures from loss - click here for the audio (3 min 46 sec)
As a man begins to acquire gold, he will be beset by temptations that he could make even larger sums of money through riskier venues. The first thing you must do when investing is to make sure your investment is secure. If it’s loaned to a person, make sure they are capable of paying it back. If it is invested in a business venture, be sure that the receiver of the loan is wise in the ways of the particular business, otherwise the risk of loss is much greater.
The fifth cure: make of thy dwelling a profitable investment - click here for the audio (3 min 23 sec)
Arkad explains to the men that it’s a wise investment to own your own home. The reason for this is that when you rent a home, you pay out money and continue to rent. When you borrow money to purchase a home, each payment you make reduces your debt by some, and eventually you’re left with a home that you own. When you rent, whether you stay or not, no matter what you pay you end up with nothing in the end.
The sixth cure: insure a future income - click here for the audio (4 min 58 sec)
The sixth lesson Arkad teaches is to make sure you have money to provide for yourself when you’re old, or for your family should you be unable to continue doing so. He says that making investments now that will slowly build and yield an income many years down the road is a good idea, because when the time comes that you can’t work anymore you will have money to live.
The seventh cure: increase thy ability to earn - click here for the audio (6 min 55 sec)
In the final cure, Arkad tells his students that in order to make more money, you must be better at what you do. Whatever your job is, people will pay more for higher quality and better service. As you are paid more, you will be able to save more and subsequently invest more. Also, as you invest your savings, you should endeavor to learn more and increase your knowledge of investing.
Commentary
The first cure says that you have to save money. You must save at least 10% of your income. This percentage has been proven as a minimal starting point for saving money. Learn how to live on 90% of what you've been earning.
The second cure supports the first. It explains how to go from living on 100% of your income to living on 90%. You have to create a budget and adjust your spending habits. Reduce or eliminate those expenditures that are not absolutely necessary. Necessary expenditures must be paid with 90% of your income. 10% of your income is saved for investing. Who determines the budget? You. Be wise in your spending decisions to ensure that you can quickly save enough money to start investing. Create a budget, adjust your spending habits, and practice delaying unnecessary gratifications while you save money. Only when money is saved can it be invested and turned into more money. Which is better? short-term gratifications or substantial belongings that come from income bringing investments. Only you can control where the money flows from your income. The goal is to delay your short term gratifications until you reach a point in time where the money in your savings is generating a disposable income. Then you can indulge yourself in many gratifications without fear of losing the wealth. You will have money and time at the same time, the true definition of wealth.
The third cure requires that you avoid spending the profit you make from investments and add all profits to your savings as you continue to live on 90% of your income. The goal is to force your money to work for you by putting it into transactions that make you more money. A transaction that when complete will give you the original amount of money you invested PLUS profit. When the project or transaction is complete, you add the profit to your savings and repeat the process until your savings is so significant that you can start taking a disposable income.
The fourth cure deals with keeping your money safe by choosing projects carefully and avoiding the lure of get-rich-quick schemes. It’s important to remember that wealth is grown like a tree. It can not be grown rapidly. Any notion of investing in projects or transactions that are supposed to produce big money really fast should be avoided. To help ensure you don't lose your savings, the author promotes the concept of collaboration. Collaboration means seeking out those that understand how money should be handled, managed and invested. Find others that have experience and expertise in running businesses, trades or investments. Going into projects or transactions with a group where everybody is putting in a portion of their savings means the risk and reward is equal to everybody. The odds of losing your money go down and of earning a profit go up. You and your group together will scrutinize the risk greater, ensuring your money is safe. Wisdom from the group can protect you from unsafe investments.
The fifth cure promotes home ownership. Everybody has to live and pay for housing. We have two choices; we can rent or we can own the house we live in. When you rent however, your payments go out to a landlord and you never see any portion of it again. It is permanently gone. In contrast, when you purchase a home and have mortgage debt, a portion of each payment made is being saved away into your home in the form of equity. Renters can never build equity for themselves. Your home is your "Asset" and assets can be leveraged or liquidated. If you rent, you are paying your landlord who enjoys the equity in the home you live in. It is much better to be in a position to pay off or pay down your debt and have money left-over. Real Estate can also appreciate in value, which is more equity. If you rent, you are giving this additional equity/money to your landlord. Next, you want to become the landlord. Owning multiple properties besides the one you live in. If you owned one property that you purchased for say $100,000 and over a 10 year time-frame you save $15,000 in equity by paying down your debt, which was paid by a renter and generated another $15,000 in equity because the value of the property goes up to $115,000. You now have $30,000 you didn't have before. If you took your savings and invested in 10 properties your return would be $300,000. This is how the wealthy become wealthy.
The sixth cure promotes long term thinking for retirement. As you and your group of like-minded peers build wealth and invest together, your seed-money will grow into a large sum. The goal is to slowly manage and grow your funds until you reach the point of critical mass where passive income gives way to disposable income. You want to have a strong disposable income at retirement.
The seventh cure focuses on investing in yourself. Keep a strong desire for improving yourself. Keep strength of purpose in your savings efforts but also in your trade (J.O.B.). Invest wisely. The larger your income, the larger your savings and therefore the larger your investments. Invest your money proportionately. Avoid going for bigger investments early on while you are savings are still seeding the early portions of your fortune. Increase your ability to earn through your investments by increasing your education on investing. The more you know, the better at it you will be, and you will eventually acheive critical mass. You must maintain the income from your J.O.B. until your acheive critical mass.
The first cure says that you have to save money. You must save at least 10% of your income. This percentage has been proven as a minimal starting point for saving money. Learn how to live on 90% of what you've been earning.
The second cure supports the first. It explains how to go from living on 100% of your income to living on 90%. You have to create a budget and adjust your spending habits. Reduce or eliminate those expenditures that are not absolutely necessary. Necessary expenditures must be paid with 90% of your income. 10% of your income is saved for investing. Who determines the budget? You. Be wise in your spending decisions to ensure that you can quickly save enough money to start investing. Create a budget, adjust your spending habits, and practice delaying unnecessary gratifications while you save money. Only when money is saved can it be invested and turned into more money. Which is better? short-term gratifications or substantial belongings that come from income bringing investments. Only you can control where the money flows from your income. The goal is to delay your short term gratifications until you reach a point in time where the money in your savings is generating a disposable income. Then you can indulge yourself in many gratifications without fear of losing the wealth. You will have money and time at the same time, the true definition of wealth.
The third cure requires that you avoid spending the profit you make from investments and add all profits to your savings as you continue to live on 90% of your income. The goal is to force your money to work for you by putting it into transactions that make you more money. A transaction that when complete will give you the original amount of money you invested PLUS profit. When the project or transaction is complete, you add the profit to your savings and repeat the process until your savings is so significant that you can start taking a disposable income.
The fourth cure deals with keeping your money safe by choosing projects carefully and avoiding the lure of get-rich-quick schemes. It’s important to remember that wealth is grown like a tree. It can not be grown rapidly. Any notion of investing in projects or transactions that are supposed to produce big money really fast should be avoided. To help ensure you don't lose your savings, the author promotes the concept of collaboration. Collaboration means seeking out those that understand how money should be handled, managed and invested. Find others that have experience and expertise in running businesses, trades or investments. Going into projects or transactions with a group where everybody is putting in a portion of their savings means the risk and reward is equal to everybody. The odds of losing your money go down and of earning a profit go up. You and your group together will scrutinize the risk greater, ensuring your money is safe. Wisdom from the group can protect you from unsafe investments.
The fifth cure promotes home ownership. Everybody has to live and pay for housing. We have two choices; we can rent or we can own the house we live in. When you rent however, your payments go out to a landlord and you never see any portion of it again. It is permanently gone. In contrast, when you purchase a home and have mortgage debt, a portion of each payment made is being saved away into your home in the form of equity. Renters can never build equity for themselves. Your home is your "Asset" and assets can be leveraged or liquidated. If you rent, you are paying your landlord who enjoys the equity in the home you live in. It is much better to be in a position to pay off or pay down your debt and have money left-over. Real Estate can also appreciate in value, which is more equity. If you rent, you are giving this additional equity/money to your landlord. Next, you want to become the landlord. Owning multiple properties besides the one you live in. If you owned one property that you purchased for say $100,000 and over a 10 year time-frame you save $15,000 in equity by paying down your debt, which was paid by a renter and generated another $15,000 in equity because the value of the property goes up to $115,000. You now have $30,000 you didn't have before. If you took your savings and invested in 10 properties your return would be $300,000. This is how the wealthy become wealthy.
The sixth cure promotes long term thinking for retirement. As you and your group of like-minded peers build wealth and invest together, your seed-money will grow into a large sum. The goal is to slowly manage and grow your funds until you reach the point of critical mass where passive income gives way to disposable income. You want to have a strong disposable income at retirement.
The seventh cure focuses on investing in yourself. Keep a strong desire for improving yourself. Keep strength of purpose in your savings efforts but also in your trade (J.O.B.). Invest wisely. The larger your income, the larger your savings and therefore the larger your investments. Invest your money proportionately. Avoid going for bigger investments early on while you are savings are still seeding the early portions of your fortune. Increase your ability to earn through your investments by increasing your education on investing. The more you know, the better at it you will be, and you will eventually acheive critical mass. You must maintain the income from your J.O.B. until your acheive critical mass.
Key Points
- You have to SAVE MONEY...no less than10% 2ND TIME THIS HAS BEEN SUGGESTED.
- Use a budget to reduce your spending so that you can live on 90% and save 10% of your income to invest.
- Do not spend any profits you make on investments until you acheive critical mass.
- Find a group of investors, experienced in investing and leverage your money with them. Instead of trying to figure it out on your own, find other like-minded people who understand the laws of money and wealth. Learn from them, do what they do. 3RD TIME THIS ACTION HAS BEEN SUGGESTED.
- You must own the home you live in and avoid renting.
- Look at your savings and the investment process as long-term retirement. Do not rely on your J.O.B. for retirement. But don't rush it and make mistakes either.
- Maintain your J.O.B. and keep increasing the income from it to contribute to your savings and investments with the 90/10 or better formula. Do this until it is naturally time to retire which is when you have achieved critical mass.
Exercises
- Define Critical Mass.
- Download the ("Every-Dollar") application on your smart-phone.
- Enter your current expenses. Enter your current household income.
- Identify your differential. If it's positive this is good. This will be the minimum amount you will start saving.
- Look at your other expenditures and decide which ones you can reduce or eliminate so that you can increase your differential.
- Track and Manage your budget month-to-month. Get with one of our Advisors to get your backoffice setup. Log into your backoffice and schedule phone consultations with your Advisor to review your budget as needed to see your savings grow.
Meet the Goddess of Luck - click here for the audio (33min 34 sec)
Arkad’s small school has now grown into what’s known around the city as the Temple of Learning. It’s a place where men of the city come to learn and discuss matters with the poorest mingling with the rich and powerful on equal footing.
Arkad arrives in the evening to eighty or so students, eagerly awaiting his lectures. Upon asking what should be discussed, one man brings up the subject of luck. The man had found a purse on the ground that held gold coins. Happy with his stroke of luck, it was his desire to find out how to make it happen more often.
Arkad’s small school has now grown into what’s known around the city as the Temple of Learning. It’s a place where men of the city come to learn and discuss matters with the poorest mingling with the rich and powerful on equal footing.
Arkad arrives in the evening to eighty or so students, eagerly awaiting his lectures. Upon asking what should be discussed, one man brings up the subject of luck. The man had found a purse on the ground that held gold coins. Happy with his stroke of luck, it was his desire to find out how to make it happen more often.
Beginning the discussion on luck, Arkad makes the distinction between seemingly random coincidence, such as winning at the races or gambling, and the good luck of profitable opportunities. Those who seek to make their luck by gambling, not only are the odds against them, but it’s the business of the gaming masters to make money. The gaming masters know their business and therefore stack the odds in their favor, always. While some people do win, the majority end up losing. Arkad explains that this kind of luck, wherein a man has no power to influence the outcome, and the people whom he is betting against have greater odds of winning is false luck and a foolish enterprise.
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"Luck occurs when preparedness meets opportunity." |
Real luck occurs when preparedness meets opportunity. You must be prepared when an opportunity to invest and turn a profit presents itself to you. Not only can this kind of luck be influenced by your decisions, but these opportunities can be sought out, increasing the likelihood of their occurrences.
The conversation on luck continues and the men discuss stories of how opportunities arose, and through procrastination, some may let the opportunity pass and miss out on making money. Arkad again makes a distinction between good and bad luck in this context. Good luck, he says, is when an opportunity to invest and increase your holdings arises; bad luck is when you allow that opportunity to pass.
The conversation on luck continues and the men discuss stories of how opportunities arose, and through procrastination, some may let the opportunity pass and miss out on making money. Arkad again makes a distinction between good and bad luck in this context. Good luck, he says, is when an opportunity to invest and increase your holdings arises; bad luck is when you allow that opportunity to pass.
Commentary
In order to understand good luck in the context of this chapter, it is important to be able to distinguish between random coincidence and opportunity. The case in which the man found a purse with gold coins in it on the ground was a random coincidence. While a person may deem themselves “lucky” for having come across such a find, it is not the kind of luck that happens often and cannot be stimulated to occur more often.
Profitable opportunities are the preferred source of luck in Arkad’s eyes. If a man is looking to increase his wealth, then every opportunity in which to do so is considered good luck, because it moves one closer to their financial goals. Procrastinating or otherwise allowing a profitable opportunity to pass is considered bad luck, because the investor has not gained in any way from the transaction.
Unlike random chance, it is possible to increase the amount of profitable opportunities in your life simply by going out and looking for them. As you invest and continue to educate yourself, opportunities can arise that had before been hidden. Most everyone has, at one time or another, allowed an opportunity to pass either due to procrastination or through indecision. You should be prepared to act upon an opportunity. You would be considered foolish, not-unlucky, to have missed a great opportunity because you were not prepared or indecisive.
In order to understand good luck in the context of this chapter, it is important to be able to distinguish between random coincidence and opportunity. The case in which the man found a purse with gold coins in it on the ground was a random coincidence. While a person may deem themselves “lucky” for having come across such a find, it is not the kind of luck that happens often and cannot be stimulated to occur more often.
Profitable opportunities are the preferred source of luck in Arkad’s eyes. If a man is looking to increase his wealth, then every opportunity in which to do so is considered good luck, because it moves one closer to their financial goals. Procrastinating or otherwise allowing a profitable opportunity to pass is considered bad luck, because the investor has not gained in any way from the transaction.
Unlike random chance, it is possible to increase the amount of profitable opportunities in your life simply by going out and looking for them. As you invest and continue to educate yourself, opportunities can arise that had before been hidden. Most everyone has, at one time or another, allowed an opportunity to pass either due to procrastination or through indecision. You should be prepared to act upon an opportunity. You would be considered foolish, not-unlucky, to have missed a great opportunity because you were not prepared or indecisive.
Key Points
- You can not rely on luck to bring you financial freedom.
- Be prepared to seize opportunities and do not procrastinate.
- Do not pursue luck in foolish venues.
The Five Laws Of Gold - click here for the audio (29 min 20 sec)
Kalabab the trader sits outside in his camp, surrounded by his camels and his twenty-seven hired men. He poses a question to the men that, if offered a bag heavy with gold or tablets upon which are carved words of wisdom, which would they choose? To his question the men all answered that they would choose the gold, of course. After remarking how it’s upsetting that most people would choose the gold over the wisdom, he decides to reward his men with some wisdom as well as their pay. He explains the five laws of gold to the men.
The story begins with Arkad and his son, Nomasir. In Babylon, as in many other places, it is customary that a son inherits his father’s estate once he is grown into manhood and the father passes on. Arkad, however, does not want to hand over all of his holdings to his son if he is not sure his son can wisely handle them. Giving Nomasir a bag full of gold and a clay tablet upon which are inscribed the five laws of gold, he sends him out to create his fortune. If after ten years Nomasir has built a good reputation and a profitable enterprise for himself, he will be able to return home and inherit his father’s vast wealth.
Ten years pass, and Nomasir returns to the home of his father. After a warm greeting and a feast, Arkad asks Nomasir to tell him how he fared, and if he was able to accomplish the task before him. Nomasir begins by telling his father that he quickly lost all the gold given him. Setting out for Nineveh, Nomasir met some men in a caravan with whom he made fast friends. They explained to them that they knew of a man in Nineveh who owned a horse that he claimed was the fastest there was. The men offered Nomasir the opportunity to get in on a wager in the horse races. Thinking he had a rare opportunity, Nomasir bet heavily on the horse with his newly found friends only to find that it was soundly beaten. Later, he learned that the men with whom he met in the caravan, as well as the horse owner in Nineveh were working together to scam unwary people out of their money.
The second venture Nomasir took part in was also unwise. Another man in the caravan to Nineveh explained that he knew of a shop owner who had recently died, and his wares could be purchased for cheap. However, the man needed to return to Babylon first to get his money, and during his time away the merchandise may be bought by someone else. He asked Nomasir if he would be willing to put up the money to purchase the deceased merchant’s wares, and Nomasir agreed. After making the purchase, the man lingered in Nineveh and spent the money he and Nomasir made in their business venture unwisely, eventually being put out by Nomasir who was forced to sell of the rest of the business at great loss.
Finally, determined to accomplish the task his father set before him, Nomasir turned to the tablet and the wisdom which was the five laws of gold.
Kalabab the trader sits outside in his camp, surrounded by his camels and his twenty-seven hired men. He poses a question to the men that, if offered a bag heavy with gold or tablets upon which are carved words of wisdom, which would they choose? To his question the men all answered that they would choose the gold, of course. After remarking how it’s upsetting that most people would choose the gold over the wisdom, he decides to reward his men with some wisdom as well as their pay. He explains the five laws of gold to the men.
The story begins with Arkad and his son, Nomasir. In Babylon, as in many other places, it is customary that a son inherits his father’s estate once he is grown into manhood and the father passes on. Arkad, however, does not want to hand over all of his holdings to his son if he is not sure his son can wisely handle them. Giving Nomasir a bag full of gold and a clay tablet upon which are inscribed the five laws of gold, he sends him out to create his fortune. If after ten years Nomasir has built a good reputation and a profitable enterprise for himself, he will be able to return home and inherit his father’s vast wealth.
Ten years pass, and Nomasir returns to the home of his father. After a warm greeting and a feast, Arkad asks Nomasir to tell him how he fared, and if he was able to accomplish the task before him. Nomasir begins by telling his father that he quickly lost all the gold given him. Setting out for Nineveh, Nomasir met some men in a caravan with whom he made fast friends. They explained to them that they knew of a man in Nineveh who owned a horse that he claimed was the fastest there was. The men offered Nomasir the opportunity to get in on a wager in the horse races. Thinking he had a rare opportunity, Nomasir bet heavily on the horse with his newly found friends only to find that it was soundly beaten. Later, he learned that the men with whom he met in the caravan, as well as the horse owner in Nineveh were working together to scam unwary people out of their money.
The second venture Nomasir took part in was also unwise. Another man in the caravan to Nineveh explained that he knew of a shop owner who had recently died, and his wares could be purchased for cheap. However, the man needed to return to Babylon first to get his money, and during his time away the merchandise may be bought by someone else. He asked Nomasir if he would be willing to put up the money to purchase the deceased merchant’s wares, and Nomasir agreed. After making the purchase, the man lingered in Nineveh and spent the money he and Nomasir made in their business venture unwisely, eventually being put out by Nomasir who was forced to sell of the rest of the business at great loss.
Finally, determined to accomplish the task his father set before him, Nomasir turned to the tablet and the wisdom which was the five laws of gold.
The five laws of gold:
Nomasir then tells his father how he found gainful employment as a handler of slaves, and began putting the five laws of gold to work, starting with saving one-tenth of all he earned. The slave master, Nomasir’s boss, saw his work-ethic and through casual conversation became aware that he had saved money. Soon after the slave master presented an investment opportunity to Nomasir. The King of Nineveh wanted to build large metal gates to protect the city, but there was very little materials in the city for the project. The proposition was that Nomasir would join with the slave master and a few others in purchasing the metal for cheap from far away, and then their group would sell the metal to the King’s men for a profit. The venture was a success and Nomasir was invited into the confidence of the group of investors. That group with Nomasir would continue to collaborate and execute uponn profitable investment opportunities. Nomasir became wealthy in both gold and in experience.
After his story, Nomasir had a slave bring forth three large bags of gold. One to replace what was given to him by his father, the other two was to pay his father for the wisdom engraved on the tablet of the five laws of gold, stating that he placed far greater value on the wisdom of his father than the gold with which it made him. Overjoyed, Arkad accepted his son’s gold and gave him his well-earned position as heir of his estate.
- 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.
- Gold laboreth diligently and for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
- Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
- Gold slippeth away from a man who invests it in businesses or purposes in which he is not familiar or which are not approved by those skilled in its keep.
- 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 of investment.
Nomasir then tells his father how he found gainful employment as a handler of slaves, and began putting the five laws of gold to work, starting with saving one-tenth of all he earned. The slave master, Nomasir’s boss, saw his work-ethic and through casual conversation became aware that he had saved money. Soon after the slave master presented an investment opportunity to Nomasir. The King of Nineveh wanted to build large metal gates to protect the city, but there was very little materials in the city for the project. The proposition was that Nomasir would join with the slave master and a few others in purchasing the metal for cheap from far away, and then their group would sell the metal to the King’s men for a profit. The venture was a success and Nomasir was invited into the confidence of the group of investors. That group with Nomasir would continue to collaborate and execute uponn profitable investment opportunities. Nomasir became wealthy in both gold and in experience.
After his story, Nomasir had a slave bring forth three large bags of gold. One to replace what was given to him by his father, the other two was to pay his father for the wisdom engraved on the tablet of the five laws of gold, stating that he placed far greater value on the wisdom of his father than the gold with which it made him. Overjoyed, Arkad accepted his son’s gold and gave him his well-earned position as heir of his estate.
Commentary
The five laws of gold are a simple list of do’s and don’ts associated with the handling of money and wise investments. They begin with saving a portion of everything earned in order to provide seed money as one prepares over time to leverage that money into investments.
The second law states that gold wisely invested will continue to grow and in turn create even more. While a man can work as hard as he may, he will eventually tire and need to sleep. Gold, or money, on the other hand, once invested will begin to accrue interest and/or dividends so long as it stays invested. The wealthy understand how money works and that properly investing it can lead to a life of abundance.
The third law governs the nature of the gold’s investment. When you invest your money in any business venture, it’s important to make sure that your principal is secured, and that the people with whom you are dealing are knowledgeable regarding investments.
The fourth law is more or less the same as the third law, but worded from the opposite point of view. It states that you are likely to lose your money if you’re unfamiliar with the method of investing.
The fifth and final law deals with three possible and common pitfalls when it comes to investment. The first deals with impossible earnings. Gambling, high-risk ventures and volatile stocks are all examples of this. The second pitfall is following the advice of “tricksters and schemers.” These would be the men who tricked Nomasir into betting on their horse, only to have it beaten. These men all shared in the winnings of the man who owned the horse that won, and made a career out of misleading people. The third aspect deals with investing on one’s own inexperience or romantic desires of investment. Most people have heard stories of those who made it big investing in an unknown company or venture, only to have it succeed beyond expectations. While this does happen from time to time, far more people lose money in this way that gain it. Investing with the expectation of making large profits quickly can be foolish, and more often than not leads to loss.
The five laws of gold are a simple list of do’s and don’ts associated with the handling of money and wise investments. They begin with saving a portion of everything earned in order to provide seed money as one prepares over time to leverage that money into investments.
The second law states that gold wisely invested will continue to grow and in turn create even more. While a man can work as hard as he may, he will eventually tire and need to sleep. Gold, or money, on the other hand, once invested will begin to accrue interest and/or dividends so long as it stays invested. The wealthy understand how money works and that properly investing it can lead to a life of abundance.
The third law governs the nature of the gold’s investment. When you invest your money in any business venture, it’s important to make sure that your principal is secured, and that the people with whom you are dealing are knowledgeable regarding investments.
The fourth law is more or less the same as the third law, but worded from the opposite point of view. It states that you are likely to lose your money if you’re unfamiliar with the method of investing.
The fifth and final law deals with three possible and common pitfalls when it comes to investment. The first deals with impossible earnings. Gambling, high-risk ventures and volatile stocks are all examples of this. The second pitfall is following the advice of “tricksters and schemers.” These would be the men who tricked Nomasir into betting on their horse, only to have it beaten. These men all shared in the winnings of the man who owned the horse that won, and made a career out of misleading people. The third aspect deals with investing on one’s own inexperience or romantic desires of investment. Most people have heard stories of those who made it big investing in an unknown company or venture, only to have it succeed beyond expectations. While this does happen from time to time, far more people lose money in this way that gain it. Investing with the expectation of making large profits quickly can be foolish, and more often than not leads to loss.
Key Points
- Save money from your earnings. 3RD TIME THIS HAS BEEN SUGGESTED.
- Invest wisely and leverage your money, accruing interest and profits that should be added back to the savings.
- Find a group of investors, experienced in investing and leverage your money with them. Instead of trying to figure it out on your own, find other like-minded people who understand the laws of money and wealth. Learn from them, do what they do. 4TH TIME THIS ACTION HAS BEEN SUGGESTED.
- Avoid get-rich-quick schemes and those who would promote such ventures.
Exercises
- Write out the 5 laws of Money.
- Condense them down to short concise bullet points that are easy to remember.
- Memorize these short concise bullet points.
The Gold Lender of Babylon - click here for the audio (31 min 29 sec)
Rodan the spear-maker has just received a bonus of fifty gold coins from the King of Babylon for coming up with an improved method of making spearheads. When his friends and family found out about the gold, they all came to him with various requests and investment opportunities. Rodan’s sister was particularly compelling, because her husband wanted to begin a business as a merchant and needed someone to invest capital in his idea. Rodan cared very much for his sister, but didn't really want to hand over his newly acquired wealth. In an effort to get advice, he seeks out Mathon the gold lender.
Mathon begins by telling Rodan a story about a farmer in Nineveh who could understand the language of animals. In his story, a donkey and an ox are conversing on the farm. The ox’s job is to pull the plow all day in the fields, it’s tiring and causes the ox a lot of hardship. The ox mentions that he feels the donkey is lucky, for his job is to carry the farmer only when he needs to go to town, and spends most of his days standing about, not having to work. Wanting to help his friend, the donkey comes up with an an idea and tells the ox that the next day, he should claim to be sick and therefore not be required to pull the plow. The ox likes the idea and the next day does just that. However, regardless of whether or not the ox is sick, the fields must be plowed. That being the case, the master forces the donkey to do the plowing. The donkey is hitched to the plow and forced to work in the fields the entire day.
Tired, sore, and angry, the donkey returns to the barn. The ox is happy, the donkey, however, tells the ox that he only intended to help his friend but is angry that he ended up having to do the task for him. The donkey tells the ox that he heard the farmer tell his farmhand that if the ox was sick again the next day, he would be butchered. Not wanting to be killed, the next day the ox acted healthy and was once again hitched to the plow and forced to work in the field. Bitter at the result of his having to shoulder the ox’s burden, the donkey never again spoke to the ox.
After telling the story to Rodan, Mathon shows him a large box in which he keeps tokens gathered from the people he lends money to. Each token is taken in exchange for the loan, and Mathon explains to Rodan that every token that stays in the box is one debtor who failed to meet their debt obligations, which became a lesson to the gold lender.
Rodan explains that he is appreciative of the advice given him by the gold lender, but his question is not answered. Should he give the gold to his sister’s husband that he might become a wealthy merchant? Mathon then asks if the man knows the ins and outs of being a merchant? Does he understand where to buy inexpensive goods and where to sell them at higher prices? Rodan replies that his sister’s husband did not have that knowledge. Assisting Rodan in the forge and helping in some shops was the extent of his experience. Upon hearing this, Mathon tells Rodan that were his brother in law to come to him asking for gold, he would not lend it to him, because he had no knowledge of his trade and no means by which to secure the loan.
Rodan the spear-maker has just received a bonus of fifty gold coins from the King of Babylon for coming up with an improved method of making spearheads. When his friends and family found out about the gold, they all came to him with various requests and investment opportunities. Rodan’s sister was particularly compelling, because her husband wanted to begin a business as a merchant and needed someone to invest capital in his idea. Rodan cared very much for his sister, but didn't really want to hand over his newly acquired wealth. In an effort to get advice, he seeks out Mathon the gold lender.
Mathon begins by telling Rodan a story about a farmer in Nineveh who could understand the language of animals. In his story, a donkey and an ox are conversing on the farm. The ox’s job is to pull the plow all day in the fields, it’s tiring and causes the ox a lot of hardship. The ox mentions that he feels the donkey is lucky, for his job is to carry the farmer only when he needs to go to town, and spends most of his days standing about, not having to work. Wanting to help his friend, the donkey comes up with an an idea and tells the ox that the next day, he should claim to be sick and therefore not be required to pull the plow. The ox likes the idea and the next day does just that. However, regardless of whether or not the ox is sick, the fields must be plowed. That being the case, the master forces the donkey to do the plowing. The donkey is hitched to the plow and forced to work in the fields the entire day.
Tired, sore, and angry, the donkey returns to the barn. The ox is happy, the donkey, however, tells the ox that he only intended to help his friend but is angry that he ended up having to do the task for him. The donkey tells the ox that he heard the farmer tell his farmhand that if the ox was sick again the next day, he would be butchered. Not wanting to be killed, the next day the ox acted healthy and was once again hitched to the plow and forced to work in the field. Bitter at the result of his having to shoulder the ox’s burden, the donkey never again spoke to the ox.
After telling the story to Rodan, Mathon shows him a large box in which he keeps tokens gathered from the people he lends money to. Each token is taken in exchange for the loan, and Mathon explains to Rodan that every token that stays in the box is one debtor who failed to meet their debt obligations, which became a lesson to the gold lender.
Rodan explains that he is appreciative of the advice given him by the gold lender, but his question is not answered. Should he give the gold to his sister’s husband that he might become a wealthy merchant? Mathon then asks if the man knows the ins and outs of being a merchant? Does he understand where to buy inexpensive goods and where to sell them at higher prices? Rodan replies that his sister’s husband did not have that knowledge. Assisting Rodan in the forge and helping in some shops was the extent of his experience. Upon hearing this, Mathon tells Rodan that were his brother in law to come to him asking for gold, he would not lend it to him, because he had no knowledge of his trade and no means by which to secure the loan.
Commentary
The purpose of this text is to point out what to do OR NOT do with your money. Whether you come into money quickly like Rodan or save it over time the moral is the same. If Rodan, in wanting to help his brother in law, were to give his gold to him and find himself unable to be repaid, then he would be shouldering the burden of his brother in law’s mistakes. Do not give your money to your family and friends in the hopes that they will pay you back. That scenario is highly unlikely. You will lose your money.
Second, in regards to the chest of trinkets, Mathon the gold lender was using them as collateral in his lending practices. The best kind of collateral is that which is worth more than the loan, the very principal modern day pawn shops use. If for some reason the debtor defaults on the loan, the collateral can then be sold in order to regain the principal, securing the loan and ridding the lender of any chance at a loss.
When Mathon asked if Rodan’s brother in law had any knowledge on the business of being a merchant, he was following one of the five laws of gold. Every loan a money lender makes is an investment in that it is always repaid with interest. If you’re going to invest, the third law of gold states that you should invest with people knowledgeable regarding the investment. Giving someone money in order to start a business they know nothing about is a poor investment, and yields very little chance on any return.
The purpose of this text is to point out what to do OR NOT do with your money. Whether you come into money quickly like Rodan or save it over time the moral is the same. If Rodan, in wanting to help his brother in law, were to give his gold to him and find himself unable to be repaid, then he would be shouldering the burden of his brother in law’s mistakes. Do not give your money to your family and friends in the hopes that they will pay you back. That scenario is highly unlikely. You will lose your money.
Second, in regards to the chest of trinkets, Mathon the gold lender was using them as collateral in his lending practices. The best kind of collateral is that which is worth more than the loan, the very principal modern day pawn shops use. If for some reason the debtor defaults on the loan, the collateral can then be sold in order to regain the principal, securing the loan and ridding the lender of any chance at a loss.
When Mathon asked if Rodan’s brother in law had any knowledge on the business of being a merchant, he was following one of the five laws of gold. Every loan a money lender makes is an investment in that it is always repaid with interest. If you’re going to invest, the third law of gold states that you should invest with people knowledgeable regarding the investment. Giving someone money in order to start a business they know nothing about is a poor investment, and yields very little chance on any return.
The Walls Of Babylon - click here for the audio
Babylon is currently under siege by the Assyrians, and Banzar stands guard at a hallway leading to the top of the walls. The Assyrians have gathered outside the walls and around the gate near Banzar and are hammering away at it with a battering ram. The citizens are gathered inside the city, afraid of the potential breach by the enemy army. In their fear, a few citizens approach Banzar and inquire how the gates are holding up, and if they should fall or not.
As each townsperson approaches Banzar and asks if the gates will hold, he replies in turn that the gates are mighty and will not fall. They were built by the Queen a hundred years prior in order to protect, and protect they would.
After four weeks, the Assyrians, unable to breach the walls, lift the siege and go home.
Commentary
This parable was short, but made a strong point. Babylon was a very rich city, and because of this many people tried (and some succeeded) in conquering the city and looting its treasures. Knowing that the city held many riches, the Kings and Queens built incredibly strong walls in order to protect its wealth and people.
The same care should be taken to protect one’s own investments and livelihood. Making sure the principal in any investment is secure is extremely important if you don’t want to lose your money. Providing security for the future is also advisable, and insurance is an excellent way of providing for the unforeseen.
The Camel Trader of Babylon - click here for the audio
The story begins with Tarkad, jobless, alone and starving, walking the streets of Babylon. He runs into Dabasir outside an eating house, a man to whom Tarkad is indebted for two pieces of copper and one piece of silver. Dabasir asks if Tarkad has the money he owes him, to which Tarkad responds that he does not. Ill fortune pursues Tarkad, so he says, and he cannot get ahold of any money to repay his debts. Annoyed at the response, Dabasir beckons Tarkad to follow him into the eating house to sit with him while he eats.
Dabasir ordered food for himself, but only some cool water for Tarkad. As they are waiting for the food, Dabasir tells Tarkad of a man who has a piece of stone cut so thin that you can see right through it. He explains that though the piece of stone is see-through, it gives everything one views a yellow tint. Dabasir goes on to ask Tarkad if it’s possible to see the world in a different color than it really is. Tarkad’s response was noncommittal, as he was far more interested in the piece of goat meat set before Dabasir than the question. Dabasir responds to his answer saying that he knows for certain that it is possible, for in the past, he saw the world in a far different light. Thus begins the story of how Dabasir became a camel trader in Babylon.
When Dabasir was young, he learned from his father the method of making saddles. He was young, and his lack of skill in the trade made him little money. Wanting more than his meager salary could afford, Dabasir found that many of the merchants in town would offer him credit, allowing him to purchase things he wanted now and pay for them later. As time went on, Dabasir purchased so much through credit that he was unable to afford to both live and pay his debts at the same time. He borrowed money from his friends in order to purchase the things he needed in which to live, but quickly found that he ended up with even more debt. Since he was unable to support his new, young wife, she left him and moved back in with her father.
Eventually, he fell in with some robbers and began a life of crime. Instead of using the money he stole to set his life back in order, he and the other robbers wasted it on food and drink and clothing. After robbing one of the caravans, spearmen from a local chief caught them and sold them into slavery in Syria. Dabasir was purchased by a Syrian tribal Chief and given to his wives to keep as a eunuch. Luckily for Dabasir, none of the Chieftan’s wives were much interested in owning a eunuch. However, one of the wives, named Sira, needed someone to tend her camels and Dabasir, being a saddle maker, was given that opportunity instead. Happy at being saved from an unfortunate fate, Dabasir tried opening up to Sira and explained that he was not born into slavery, but was the son of a free man. Sira scowled at him and replied that if he possessed the soul of a free man, how could he have let himself come to be a slave in Syria?
Dabasir toiled for a year as a slave under Sira’s ownership, but found that he could not himself mingle with the other slaves. Every night he sat apart and did not participate in the gossip and games that the slaves played. Noticing this, Sira asked him why he chose to segregate himself from the other slaves. Dabasir explained that he was pondering her words to him about possessing the soul of a free man, and he found that he could not bring himself take part in the lifestyle of the slaves. He asks her what she thinks of him now, if he has the soul of a free man or that of a slave? In answer, Sira states that if he has the desire to repay his debts and live as an upstanding member of society, than he possesses the soul of a free man. However, if he does not desire to make things right, than he should accept his lot and the soul of a slave. Sira asks Dabasir to prove that he has the soul of a free man, else he should stay a slave in Syria. Unable to answer her, Dabasir remains quiet.
Three days later, Dabasir is summoned to Sira’s aid as she needs to ride her camel to another town to see her sick mother. After loading what seemed to Dabasir far too many supplies for a three day journey, they leave. Upon reaching the home of the sick mother, Sira gives Dabasir two camels and all of the supplies, telling him that if he is to prove his worth, this is his chance. Taking her up on her offer, Dabasir quickly makes haste towards Babylon.
The way is far, and Dabasir finds himself out of supplies with two very tired camels. Lying in the dirt, Dabasir looks around him. The ground is rocky and his camels laying not far away, exhausted. It has come to the final, bitter end, he thinks. This is where he dies. But as he lay there some more, something changes in him. He thinks to himself, “Do I have the soul of a free man, or a slave?” He realizes that if he has the soul of a slave, he should just give up and die there in the desert. However, if he has the soul of a free man, he would rise up and make his way to Babylon. He rises to his feet, summons his camels and begins travelling again. Eventually, Dabasir reaches more fertile land with water, grass for his camels, and fruit for himself. He ends his story with his eventual, triumphant return to Babylon.
Finishing his story, Dabasir asks Tarkad if he is ready to stand up, pay his debts and once again be respected in Babylon? Tarkad replies, teary eyed, that he is ready to meet his obligation. A man listening from the next table asks Dabasir how he fared once he reached Babylon, to which Dabasir replied “Where the determination is, the way can be found.” Dabasir visited everyone to whom he was indebted, and begged that they allow him to repay his debts. One of the men he owed, Mathon the gold lender, helped him find work with a camel herder from which he was able to earn the money to slowly repay his debts.
Commentary
The first lesson in this story is clear: purchasing what you cannot afford on credit can easily spiral out of control. Initially, Dabasir was able to both earn the money to live and to pay off his debts, but as his appetite for merchandise was unable to be satisfied, he eventually found himself with more debt than he could repay. In order to avoid this situation, purchasing on credit should only be done with the greatest of need.
The second lesson is directed at those who already find themselves indebted. Leaving debts unpaid can eventually cost you everything you have, as it did Dabasir. Though Dabasir was forced to live as a slave literally, it can be the same for one who is enslaved by their own desires. When he is finally determined to return to Babylon and repay his debts, Dabasir proves that he is in fact his own master and now in control of himself and his desires. So, too should one be who finds oneself buried in debt. No matter how deep a hole one finds himself in, once the determination to get out is found, a way to do so is not far off.
The Clay Tablets of Babylon - click here for the audio
The chapter begins with a letter from an Alfred H. Shrewsbury to a professor Franklin Caldwell. The letter explains that in an archaeological dig on the site that was once Babylon, some clay tablets are found which describe the story of a man named Dabasir. Each tablet chronicles a portion of Dabasir’s life upon returning to Babylon from slavery in Syria.
Tablet number 1
The tablet begins with Dabasir returning from Syria with the determination to repay his debts and become worthy of respect in Babylon. The tablet is engraved shortly after Mathon the gold lender helps him find a job with the camel herder. He explains that he is first going to set aside one-tenth of whatever he can make and save it, to begin his fortune. Second, he will use seven-tenths of his salary to take care of himself and his wife, who recently returned to him from her father’s care.
Tablet number 2
Third on his list, is to save the remaining two-tenths of his salary and distribute it equally among those to whom he is indebted, until they are all paid off. It goes on to list the names of the people he owes money to, but the list is incomplete.
Tablet number 3
This tablet gives the total amount of money that Dabasir owes to his creditors as one hundred nineteen pieces of silver and one hundred forty-one pieces of copper. It goes on to say that Dabasir told each one of his creditors that he had no way to repay them other than his ability to earn, and he explained to each his plan. Some of the men were happy that Dabasir returned and was working to pay off his debts while others reviled and scorned him.
Tablet number 4
After one month, Dabasir has earned nineteen pieces of silver from his job with the camel herder. Following his plan, one-tenth he saved for himself, seven-tenths he spent taking care of himself and his wife, and the last two-tenths were split up as evenly as possible among his creditors. After the first month, Dabasir’s debt has shrunk by nearly four silver pieces and he owns for himself nearly two.
The tablet also chronicles Dabasir’s financial state during his second and third months working for the camel herder. During the second month he made only eleven silver pieces, but still stayed true to his word. He kept his own portion, fed and clothed his wife, and used the final two-tenths to distribute among his creditors. The third month, however, fared far better for Dabasir. He made forty-two pieces of silver this time around and was able to pay off a larger chunk of his debt.
Tablet number 5
The fifth and final tablet finds Dabasir on the day in which he pays off the entirety of his debts. It has been a year since he last engraved anything on the tablet, and he is overjoyed to have finally paid off his debt. To his surprise, the creditors that at first had reviled and scorned him were kind once again, proud of him for repaying what was owed.
While he is happy to once again be worthy of respect in his home city, he gives all the credit for his ability to pay off his debts to his plan. Not only pay them off, but to have a bit of gold saved up for himself as well.
The chapter ends with one more letter from Alfred H. Shrewsbury to professor Franklin Caldwell. The letter states that Alfred followed the advice he found on the tablets and was able to get himself out of debt in the same method of Dabasir.
Commentary
This parable serves to show the reader that the method described in the book of attaining wealth can also be used when one is in debt. Even when you owe others, you must first be able to pay yourself. Instead of using the one-tenth of his pay to give to his creditors, Dabasir instead chose to live off of less money. Because he did this, when Dabasir was finished paying off his debts he still had his savings with which he could begin investing.
The Luckiest Man In Babylon - click here for the audio
Sharru Nada, the trade prince of Babylon is riding into the city at the head of his great caravan. With him is Hadan Gula, the grandson of his business partner Arad Gula. Sharru Nada knows that Hadan Gula’s father mismanaged his inheritance, and in an effort to help the youth get a good start in business, asked that he accompany him on his trade mission. Looking Hadan Gula up and down, Sharru Nada is disturbed to see his “gaudy robes” and the jewels on his fingers and in his ears. As Sharru Nada is thinking this, Hadan Gula interrupts his thoughts by asking why Sharru Nada works so hard. “To enjoy life,” he replies. Hadan Gula balks at Sharru Nada’s answer and states that hard work is for slaves.
As they see the Temple of Bel coming up on the horizon, Hadan Gula states that were his grandfather still alive, he and his father would not be so hard pressed with money. Neither he nor his father are able to make the kind of money his grandfather, Arad Gula, was. Sharru Nada makes no reply but continues to ride toward the city. He notices some men toiling in a field and gets the feeling that they are the very same men he saw working that same field when he passed by forty years ago. Looking at Hadan Gula, he notices the resemblance to his old friend and business partner, Arad Gula and feels a closeness with the young man. Sharru Nada devises a plan to help Hadan Gula, one that might be a bit cruel, but will help him in the long run. It begins with telling him the story of the first time Sharru Nada saw those same men plowing the field.
Forty years ago, Sharru Nada was on the very same road on his way to Babylon. This time, though, he was shackled to several other men, as they were slaves headed for the market. The man next in line to Sharru Nada was named Megiddo, a farmer from a faraway land. He explains to Sharru Nada that every slave not purchased at the market is sent to the slavers to work on the walls, and that is a terrible, terrible fate. Meggido also says that good hard work can go a long way to making a slave useful, and to explain to those looking to buy that Sharru Nada will work very hard in an effort to escape working on the walls. Sharru Nada heeds Meggido’s advice and is purchased by a baker.
The baker is a decent man and Sharru Nada works very hard for him, eventually earning the baker’s trust. Not wanting to stay a slave his entire life, Sharru Nada approaches the baker with an idea. In the afternoons, once the baking is done, he can walk the streets and sell honey cakes. He asks the baker if he can keep a portion of the money he makes doing the extra work in an effort to one day buy his freedom. The baker agrees and Sharru Nada goes to work. A few pennies a day is all he is able to make, but it’s a few pennies closer to freedom, and it pushes Sharru Nada all the harder.
One day he comes across a man named Arad Gula. Arad Gula explains to Sharru Nada that he also is a slave, and is partnered with his master in business. Arad Gula makes a bit of money and is nearly able to purchase his freedom. Sharru Nada explains that he is doing the same thing and they become fast friends. One day Arad Gula again meets Sharru Nada, this time he is in distress. He has saved enough money to purchase his freedom, but is afraid that he may fail in business without his master to look after him. Sharru Nada tells him that he should no longer be slave, that he should “...act like a free man and be one!” These words move Arad Gula and he decides to go through with buying his freedom.
Time passed, and one night the overseer of the baker’s slaves came to Sharru Nada in distress. The baker liked to gamble, and had lost a great deal of money the previous night. In an effort to square his debts, he gave his slaves to the man he owed. The next day that man showed up and took Sharru Nada away to work building a canal.
The work was much harder than baking, and Sharru Nada became discouraged. Without being able to sell the honey cakes in the afternoon, he would not make enough money to purchase his freedom. One day, when he was finally at the end of his endurance, he received a message that his master required him in Babylon.
Upon reaching Babylon, Sharru Nada was surprised to see that his new master was none other than Arad Gula! In thanks for his words of encouragement, Arad Gula purchased Sharru Nada and, when he arrived in Babylon, greeted him by smashing his slave title, freeing him from bondage. Together, they began a partnership and became very rich merchants.
The story ended and Hadan Gula was deep in thought. “I had always wanted to be a man like my grandfather”, Hadan Gula said. “Though I never knew just what kind of man he was.” With that, he removed the rings from his hands and ears and slipped back to ride behind Sharru Nada in respect.
Commentary
The final story in the book is all about hard work. When Sharru Nada adopted Meggido’s stance that hard work could set you free, it began a chain of events in his life that did exactly that. The same principle goes for anyone who wants to create wealth. You can’t save one-tenth of everything you earn when you’re not earning anything. Aside from that, the harder you work at anything the better you will get at it and the more opportunities will come to you.
No matter how hard things seem, or how dire your straits may become, the message here is to cling to your hard work and eventually you will get through it. How does this tie into the other stories? No matter the situation, if you have a strong work-ethic and a strong desire to improve your situation, you can advance your well-being.
Babylon is currently under siege by the Assyrians, and Banzar stands guard at a hallway leading to the top of the walls. The Assyrians have gathered outside the walls and around the gate near Banzar and are hammering away at it with a battering ram. The citizens are gathered inside the city, afraid of the potential breach by the enemy army. In their fear, a few citizens approach Banzar and inquire how the gates are holding up, and if they should fall or not.
As each townsperson approaches Banzar and asks if the gates will hold, he replies in turn that the gates are mighty and will not fall. They were built by the Queen a hundred years prior in order to protect, and protect they would.
After four weeks, the Assyrians, unable to breach the walls, lift the siege and go home.
Commentary
This parable was short, but made a strong point. Babylon was a very rich city, and because of this many people tried (and some succeeded) in conquering the city and looting its treasures. Knowing that the city held many riches, the Kings and Queens built incredibly strong walls in order to protect its wealth and people.
The same care should be taken to protect one’s own investments and livelihood. Making sure the principal in any investment is secure is extremely important if you don’t want to lose your money. Providing security for the future is also advisable, and insurance is an excellent way of providing for the unforeseen.
The Camel Trader of Babylon - click here for the audio
The story begins with Tarkad, jobless, alone and starving, walking the streets of Babylon. He runs into Dabasir outside an eating house, a man to whom Tarkad is indebted for two pieces of copper and one piece of silver. Dabasir asks if Tarkad has the money he owes him, to which Tarkad responds that he does not. Ill fortune pursues Tarkad, so he says, and he cannot get ahold of any money to repay his debts. Annoyed at the response, Dabasir beckons Tarkad to follow him into the eating house to sit with him while he eats.
Dabasir ordered food for himself, but only some cool water for Tarkad. As they are waiting for the food, Dabasir tells Tarkad of a man who has a piece of stone cut so thin that you can see right through it. He explains that though the piece of stone is see-through, it gives everything one views a yellow tint. Dabasir goes on to ask Tarkad if it’s possible to see the world in a different color than it really is. Tarkad’s response was noncommittal, as he was far more interested in the piece of goat meat set before Dabasir than the question. Dabasir responds to his answer saying that he knows for certain that it is possible, for in the past, he saw the world in a far different light. Thus begins the story of how Dabasir became a camel trader in Babylon.
When Dabasir was young, he learned from his father the method of making saddles. He was young, and his lack of skill in the trade made him little money. Wanting more than his meager salary could afford, Dabasir found that many of the merchants in town would offer him credit, allowing him to purchase things he wanted now and pay for them later. As time went on, Dabasir purchased so much through credit that he was unable to afford to both live and pay his debts at the same time. He borrowed money from his friends in order to purchase the things he needed in which to live, but quickly found that he ended up with even more debt. Since he was unable to support his new, young wife, she left him and moved back in with her father.
Eventually, he fell in with some robbers and began a life of crime. Instead of using the money he stole to set his life back in order, he and the other robbers wasted it on food and drink and clothing. After robbing one of the caravans, spearmen from a local chief caught them and sold them into slavery in Syria. Dabasir was purchased by a Syrian tribal Chief and given to his wives to keep as a eunuch. Luckily for Dabasir, none of the Chieftan’s wives were much interested in owning a eunuch. However, one of the wives, named Sira, needed someone to tend her camels and Dabasir, being a saddle maker, was given that opportunity instead. Happy at being saved from an unfortunate fate, Dabasir tried opening up to Sira and explained that he was not born into slavery, but was the son of a free man. Sira scowled at him and replied that if he possessed the soul of a free man, how could he have let himself come to be a slave in Syria?
Dabasir toiled for a year as a slave under Sira’s ownership, but found that he could not himself mingle with the other slaves. Every night he sat apart and did not participate in the gossip and games that the slaves played. Noticing this, Sira asked him why he chose to segregate himself from the other slaves. Dabasir explained that he was pondering her words to him about possessing the soul of a free man, and he found that he could not bring himself take part in the lifestyle of the slaves. He asks her what she thinks of him now, if he has the soul of a free man or that of a slave? In answer, Sira states that if he has the desire to repay his debts and live as an upstanding member of society, than he possesses the soul of a free man. However, if he does not desire to make things right, than he should accept his lot and the soul of a slave. Sira asks Dabasir to prove that he has the soul of a free man, else he should stay a slave in Syria. Unable to answer her, Dabasir remains quiet.
Three days later, Dabasir is summoned to Sira’s aid as she needs to ride her camel to another town to see her sick mother. After loading what seemed to Dabasir far too many supplies for a three day journey, they leave. Upon reaching the home of the sick mother, Sira gives Dabasir two camels and all of the supplies, telling him that if he is to prove his worth, this is his chance. Taking her up on her offer, Dabasir quickly makes haste towards Babylon.
The way is far, and Dabasir finds himself out of supplies with two very tired camels. Lying in the dirt, Dabasir looks around him. The ground is rocky and his camels laying not far away, exhausted. It has come to the final, bitter end, he thinks. This is where he dies. But as he lay there some more, something changes in him. He thinks to himself, “Do I have the soul of a free man, or a slave?” He realizes that if he has the soul of a slave, he should just give up and die there in the desert. However, if he has the soul of a free man, he would rise up and make his way to Babylon. He rises to his feet, summons his camels and begins travelling again. Eventually, Dabasir reaches more fertile land with water, grass for his camels, and fruit for himself. He ends his story with his eventual, triumphant return to Babylon.
Finishing his story, Dabasir asks Tarkad if he is ready to stand up, pay his debts and once again be respected in Babylon? Tarkad replies, teary eyed, that he is ready to meet his obligation. A man listening from the next table asks Dabasir how he fared once he reached Babylon, to which Dabasir replied “Where the determination is, the way can be found.” Dabasir visited everyone to whom he was indebted, and begged that they allow him to repay his debts. One of the men he owed, Mathon the gold lender, helped him find work with a camel herder from which he was able to earn the money to slowly repay his debts.
Commentary
The first lesson in this story is clear: purchasing what you cannot afford on credit can easily spiral out of control. Initially, Dabasir was able to both earn the money to live and to pay off his debts, but as his appetite for merchandise was unable to be satisfied, he eventually found himself with more debt than he could repay. In order to avoid this situation, purchasing on credit should only be done with the greatest of need.
The second lesson is directed at those who already find themselves indebted. Leaving debts unpaid can eventually cost you everything you have, as it did Dabasir. Though Dabasir was forced to live as a slave literally, it can be the same for one who is enslaved by their own desires. When he is finally determined to return to Babylon and repay his debts, Dabasir proves that he is in fact his own master and now in control of himself and his desires. So, too should one be who finds oneself buried in debt. No matter how deep a hole one finds himself in, once the determination to get out is found, a way to do so is not far off.
The Clay Tablets of Babylon - click here for the audio
The chapter begins with a letter from an Alfred H. Shrewsbury to a professor Franklin Caldwell. The letter explains that in an archaeological dig on the site that was once Babylon, some clay tablets are found which describe the story of a man named Dabasir. Each tablet chronicles a portion of Dabasir’s life upon returning to Babylon from slavery in Syria.
Tablet number 1
The tablet begins with Dabasir returning from Syria with the determination to repay his debts and become worthy of respect in Babylon. The tablet is engraved shortly after Mathon the gold lender helps him find a job with the camel herder. He explains that he is first going to set aside one-tenth of whatever he can make and save it, to begin his fortune. Second, he will use seven-tenths of his salary to take care of himself and his wife, who recently returned to him from her father’s care.
Tablet number 2
Third on his list, is to save the remaining two-tenths of his salary and distribute it equally among those to whom he is indebted, until they are all paid off. It goes on to list the names of the people he owes money to, but the list is incomplete.
Tablet number 3
This tablet gives the total amount of money that Dabasir owes to his creditors as one hundred nineteen pieces of silver and one hundred forty-one pieces of copper. It goes on to say that Dabasir told each one of his creditors that he had no way to repay them other than his ability to earn, and he explained to each his plan. Some of the men were happy that Dabasir returned and was working to pay off his debts while others reviled and scorned him.
Tablet number 4
After one month, Dabasir has earned nineteen pieces of silver from his job with the camel herder. Following his plan, one-tenth he saved for himself, seven-tenths he spent taking care of himself and his wife, and the last two-tenths were split up as evenly as possible among his creditors. After the first month, Dabasir’s debt has shrunk by nearly four silver pieces and he owns for himself nearly two.
The tablet also chronicles Dabasir’s financial state during his second and third months working for the camel herder. During the second month he made only eleven silver pieces, but still stayed true to his word. He kept his own portion, fed and clothed his wife, and used the final two-tenths to distribute among his creditors. The third month, however, fared far better for Dabasir. He made forty-two pieces of silver this time around and was able to pay off a larger chunk of his debt.
Tablet number 5
The fifth and final tablet finds Dabasir on the day in which he pays off the entirety of his debts. It has been a year since he last engraved anything on the tablet, and he is overjoyed to have finally paid off his debt. To his surprise, the creditors that at first had reviled and scorned him were kind once again, proud of him for repaying what was owed.
While he is happy to once again be worthy of respect in his home city, he gives all the credit for his ability to pay off his debts to his plan. Not only pay them off, but to have a bit of gold saved up for himself as well.
The chapter ends with one more letter from Alfred H. Shrewsbury to professor Franklin Caldwell. The letter states that Alfred followed the advice he found on the tablets and was able to get himself out of debt in the same method of Dabasir.
Commentary
This parable serves to show the reader that the method described in the book of attaining wealth can also be used when one is in debt. Even when you owe others, you must first be able to pay yourself. Instead of using the one-tenth of his pay to give to his creditors, Dabasir instead chose to live off of less money. Because he did this, when Dabasir was finished paying off his debts he still had his savings with which he could begin investing.
The Luckiest Man In Babylon - click here for the audio
Sharru Nada, the trade prince of Babylon is riding into the city at the head of his great caravan. With him is Hadan Gula, the grandson of his business partner Arad Gula. Sharru Nada knows that Hadan Gula’s father mismanaged his inheritance, and in an effort to help the youth get a good start in business, asked that he accompany him on his trade mission. Looking Hadan Gula up and down, Sharru Nada is disturbed to see his “gaudy robes” and the jewels on his fingers and in his ears. As Sharru Nada is thinking this, Hadan Gula interrupts his thoughts by asking why Sharru Nada works so hard. “To enjoy life,” he replies. Hadan Gula balks at Sharru Nada’s answer and states that hard work is for slaves.
As they see the Temple of Bel coming up on the horizon, Hadan Gula states that were his grandfather still alive, he and his father would not be so hard pressed with money. Neither he nor his father are able to make the kind of money his grandfather, Arad Gula, was. Sharru Nada makes no reply but continues to ride toward the city. He notices some men toiling in a field and gets the feeling that they are the very same men he saw working that same field when he passed by forty years ago. Looking at Hadan Gula, he notices the resemblance to his old friend and business partner, Arad Gula and feels a closeness with the young man. Sharru Nada devises a plan to help Hadan Gula, one that might be a bit cruel, but will help him in the long run. It begins with telling him the story of the first time Sharru Nada saw those same men plowing the field.
Forty years ago, Sharru Nada was on the very same road on his way to Babylon. This time, though, he was shackled to several other men, as they were slaves headed for the market. The man next in line to Sharru Nada was named Megiddo, a farmer from a faraway land. He explains to Sharru Nada that every slave not purchased at the market is sent to the slavers to work on the walls, and that is a terrible, terrible fate. Meggido also says that good hard work can go a long way to making a slave useful, and to explain to those looking to buy that Sharru Nada will work very hard in an effort to escape working on the walls. Sharru Nada heeds Meggido’s advice and is purchased by a baker.
The baker is a decent man and Sharru Nada works very hard for him, eventually earning the baker’s trust. Not wanting to stay a slave his entire life, Sharru Nada approaches the baker with an idea. In the afternoons, once the baking is done, he can walk the streets and sell honey cakes. He asks the baker if he can keep a portion of the money he makes doing the extra work in an effort to one day buy his freedom. The baker agrees and Sharru Nada goes to work. A few pennies a day is all he is able to make, but it’s a few pennies closer to freedom, and it pushes Sharru Nada all the harder.
One day he comes across a man named Arad Gula. Arad Gula explains to Sharru Nada that he also is a slave, and is partnered with his master in business. Arad Gula makes a bit of money and is nearly able to purchase his freedom. Sharru Nada explains that he is doing the same thing and they become fast friends. One day Arad Gula again meets Sharru Nada, this time he is in distress. He has saved enough money to purchase his freedom, but is afraid that he may fail in business without his master to look after him. Sharru Nada tells him that he should no longer be slave, that he should “...act like a free man and be one!” These words move Arad Gula and he decides to go through with buying his freedom.
Time passed, and one night the overseer of the baker’s slaves came to Sharru Nada in distress. The baker liked to gamble, and had lost a great deal of money the previous night. In an effort to square his debts, he gave his slaves to the man he owed. The next day that man showed up and took Sharru Nada away to work building a canal.
The work was much harder than baking, and Sharru Nada became discouraged. Without being able to sell the honey cakes in the afternoon, he would not make enough money to purchase his freedom. One day, when he was finally at the end of his endurance, he received a message that his master required him in Babylon.
Upon reaching Babylon, Sharru Nada was surprised to see that his new master was none other than Arad Gula! In thanks for his words of encouragement, Arad Gula purchased Sharru Nada and, when he arrived in Babylon, greeted him by smashing his slave title, freeing him from bondage. Together, they began a partnership and became very rich merchants.
The story ended and Hadan Gula was deep in thought. “I had always wanted to be a man like my grandfather”, Hadan Gula said. “Though I never knew just what kind of man he was.” With that, he removed the rings from his hands and ears and slipped back to ride behind Sharru Nada in respect.
Commentary
The final story in the book is all about hard work. When Sharru Nada adopted Meggido’s stance that hard work could set you free, it began a chain of events in his life that did exactly that. The same principle goes for anyone who wants to create wealth. You can’t save one-tenth of everything you earn when you’re not earning anything. Aside from that, the harder you work at anything the better you will get at it and the more opportunities will come to you.
No matter how hard things seem, or how dire your straits may become, the message here is to cling to your hard work and eventually you will get through it. How does this tie into the other stories? No matter the situation, if you have a strong work-ethic and a strong desire to improve your situation, you can advance your well-being.