Why do some people always lack money, while others become richer?, The money-making wisdom of the Babylonian rich

Part 1. A man who longed for money — ‘Why is Bansir, the carriage maker, poor?’

Bansil, a Babylonian chariot maker, and Cobi, a musician, worked diligently all their lives, but they achieved nothing. Meanwhile, his friend Akkad became the richest man in Babylon. Although it was the same starting line, the difference lies in the failure to distinguish between labor income and wealth.

Banshir and Kobe did not accumulate assets because they spent whatever they earned. Income is a flowing river, and wealth is a reservoir created by the river.

If you fall into 'lifestyle inflation', where your spending increases even as your income increases, you will never be able to escape poverty.

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Part 2. Akkad, the richest man in Babylon — 'Seven secrets to fattening my wallet'

His friend Akkad was originally an ordinary clerk, but he learned 'how to become rich' by engraving clay tablets for a wealthy moneylender all night long.

‘Make sure to keep a portion of your income for yourself’

The idea is to never spend a portion of the money you earn, but rather spend it on yourself first. Instead of using the money for rent, food, and clothes first and then saving the rest, take 10% off first and live off the rest. It is the prototype of the save first, spend later method.

In the process of following this teaching, Akkad entrusted the money he had saved to a bricklayer to buy gems, but the bricklayer, who did not know how to identify gemstones, bought fake glass beads and lost it all.

When entrusting money, you should follow the advice of experts who know the field well. 'Running properly' is as important as accumulating assets, and investing without knowledge will destroy your savings in an instant.

Azmur's story is about putting hard-earned seed money into "a coin recommended by a friend" or "a business with unconfirmed authority from an acquaintance" and then losing it. The muscles that save money and the muscles that protect money are different, and both need to be trained.

① Start saving one-tenth of your income

② Control spending by distinguishing between desires and needs.

③ Put the money you save to work (invest)

④ Be careful not to lose your principal

⑤ Own a home and turn living expenses into assets

⑥ Establish a future source of income for retirement and family

⑦ Develop your own earning ability

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Part 3. On whom does Lady Luck smile — ‘Those who take chances’

Real luck comes not at the gambling table, but to those who take action on good opportunities that come before them without delaying them.

Good investments or business opportunities always come with some uncertainty. Most people miss opportunities by putting off decisions by saying ‘think about it a little more’ or ‘next time’. A merchant in the book hesitates and misses an opportunity to buy good land at a low price, only to watch a determined colleague make a fortune with that land.

A prepared person does not hesitate in the face of a reasonable opportunity.

The real-world application is clear. The lesson of this chapter is that qualifications are strengthened when you put it off while thinking about opening a subscription account, or when you put it off while thinking about starting savings investments, you lose time for compound interest.

Luck follows those who embrace opportunity — not those who hesitate, but those who act.

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Part 4. Five Laws of Gold — ‘Even money has rules to follow’

This chapter is the story of Nomazir, the son of Akkad, and personifies the ‘law’ of wealth. Akkad gives his son a sack of gold coins and a clay tablet with the five laws inscribed on it, and sends him on his journey. Nomajir loses all his gold at first, but eventually comes back richer as he learns the wisdom of the clay tablets.

Rule #1 - Gold comes to those who set aside at least one-tenth of their income for themselves and their families.

In other words, the principle in Part 2 that money accumulates for those who save has been upgraded to a 'law'.

Second Law—Gold multiplies diligently for the owner who works it diligently, that is, who invests it wisely.

This means that you should not keep the money you save in a closet, but rather put it where it will generate profits. This is the principle of compound interest. It's a snowball effect where money makes money, and the money earned makes money again.

Third Law - Gold protects its owner who invests it carefully, following the advice of wise men who know how to handle it.

Law 4 - Gold is lost to those who invest in businesses they are unfamiliar with or in places that experts do not approve of.

These two laws are two sides of the same coin, and the message is, “Invest in what you know and stay away from what you don’t know.” It is closely aligned with Warren Buffett’s concept of ‘circle of competence’.

Rule 5 - Gold flees from those who chase unrealistic returns, are seduced by swindlers, or overestimate their inexperience.

This is an insight that penetrated 5,000 years ago into the essence of all scams that claim 'guaranteed high profits'.

The desire to get rich quickly is the fastest way to lose wealth.

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Part 5. From Debt Slave to Free Man — ‘The Clay Tablets of Davasir the Camel Merchant’

Live on 70% of your income, pay off debt with 20%, and save 10% for yourself.

The most important insight is that even if you have debt, you don't stop saving. Usually people think, 'I will save money after paying off all the debt,' but then while paying off the debt, the seed money is zero and their self-esteem collapses. Dabashir did not lose hope as he saw small amounts of assets accumulating while reducing debt by repaying debt and saving at the same time.

Another key point is not to ignore the debt, but to go directly to the creditor and reveal a plan to repay it. Instead of running away, he promised to "pay back 20% of his income equally" to all creditors and kept that promise. Even creditors who laughed at him at first began to trust him after seeing his sincerity. This shows that the essence of the debt problem is not 'money' but 'credit and will'.

Debt makes us slaves, but firm determination and systematic planning make anyone free again.

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Part 6. Babylon's Walls and Camel Merchants — 'The Values ​​of Diligence and Protection'

No matter how much wealth you accumulate, it will collapse in an instant if you are defenseless in the face of unexpected disasters (disease, accidents, unemployment). The castle wall is a metaphor for ‘risk management’.

The value of hard work itself.

The book depicts the process of a former slave gaining trust and regaining freedom through honest labor, and tells us to consider labor not as a ‘punishment’ but as the foundation of wealth and a friend. People who enjoy work and constantly improve their abilities will eventually earn more (seventh prescription), and this is the starting point of all wealth.

These two values ​​underpin all preceding principles. If saving, investing, and paying off debt are 'offense,' insurance and emergency funds are 'defense,' and diligence is the 'stamina' that makes all of that possible. Money management is ultimately a balance between offense, defense, and consistency. This is the final piece of wisdom that this classic conveys over 5,000 years of time.

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? TOP 5 KEY INSIGHTS

1. “Be sure to keep one-tenth of your income for yourself.” The starting point of wealth is not earning more, but the habit of setting aside at least 10% of the money you earn before spending it. ‘Save first, spend later’ is the first and immutable law engraved on a clay tablet 100 years ago.
2. Income and wealth are different. Income is the river that flows, and wealth is the reservoir that holds it. No matter how much you earn, if you spend it all, your assets are 0. Lifestyle inflation is the most common reason why people don't become rich.
3. If you invest in something you don't know about, your money will definitely go away. Like Akkad, who entrusted his jewels to a bricklayer, if he puts his seed money into a 'guaranteed high return' in a field he does not know, he loses it in an instant. The muscles that save money and the muscles that protect it are different.
4. Don't stop saving even if you have debt (70-20-10). Live at 70%, pay off debt at 20%, and save 10% without fail. You must pay off debt and build assets at the same time to protect your hope and credit.
5. Luck comes to those who act, not those who hesitate. Procrastination is the biggest enemy of wealth. When a prepared person does not hesitate in the face of a reasonable opportunity, people call it 'luck'.