Wealth Wisdom from Babylon: Solve Debt & Build Riches

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Throughout history, the city of Babylon has captivated imaginations with its unique allure and dazzling achievements. The very name "Babylon" evokes images of wealth and glory, a place seemingly overflowing with gold and jewels. The book The Richest Man in Babylon recounts stories found by archaeologists inscribed on stone tablets unearthed from the ancient ruins of Babylon. These stories revolve around wealth, covering themes like getting rich, preserving money, and paying off debts. Though originating over 6,000 years ago, their wisdom remains deeply insightful and surprisingly relevant today.

History doesn't simply repeat itself, but it often rhymes remarkably. Believe that the problems you face now have likely been encountered – and solved – by people long ago. After all, there is truly nothing new under the sun. So, let's delve into this ancient wisdom and see if it can offer guidance for your situation today.

01. Precious Tablets from Babylon

In a letter from Professor Shrewsbury of the Nottingham University Archaeology Department to Professor Franklin Caldwell, leader of the British scientific expedition to Hillah in Mesopotamia, Shrewsbury described his fascination with five recently excavated clay tablets from the Babylonian ruins. He spent countless enthralling hours deciphering their ancient inscriptions. The tablets told the story of a merchant named Dabasir repaying his debts, revealing a startling truth: the core aspects of human nature haven't changed one bit in five thousand years.

This "old fellow" emerging from the dust of Babylon offers us a novel method for settling debts – one that can even refill our wallets. If you, dear reader, are burdened by debt, why not try this approach and see if it works? The author of the tablets, Dabasir, had received wise counsel from a wealthy lender named Mathon. Following Mathon's advice (the backstory of which you can find in the book), Dabasir returned to his beloved homeland after escaping slavery in far-off Syria. He vowed to repay all his debts, reclaim his dignity, and become a respected, wealthy man once more. He etched this solemn pledge onto a clay tablet as a constant reminder of his commitment.

His plan, guided by Mathon, was this:

"First, I must plant seeds for my future prosperity." Therefore, he resolved to save one-tenth of his income faithfully.

"Second, this plan requires me to provide well for my wife, who has returned to me." Mathon explained that caring for a loyal wife builds a man's self-respect and strengthens his resolve to achieve his goals. Therefore, Dabasir allocated seven-tenths of his earnings to support his household. This covered necessities, clothing, and even allowed for some modest enjoyment of life. Mathon stressed a crucial rule: household expenses must never exceed 70% of income – this was fundamental to the plan's success.

"Finally, the plan must ensure I repay my debts with my earnings." Dabasir began by meticulously listing every creditor and the exact amount he owed. While the total sum was daunting, Mathon helped him understand that even small, consistent payments could eventually clear the debt. Dabasir visited each creditor, honestly explaining: "My only asset is my labor. I pledge to allocate two-tenths of my monthly income to be divided fairly among you all. This is the absolute maximum I can afford. If you can be patient, every debt will be repaid."

Dabasir diligently followed this plan, carefully distributing every hard-earned coin:

One-tenth was saved.

Seven-tenths were managed with his wife for their living expenses.

The remaining two-tenths were fairly divided among his trusting creditors.

Day after day, Dabasir stuck to this plan. The result? Not only did he pay off all his debts, but his standard of living steadily improved, and, most importantly, he accumulated a growing sum of savings.

02. The Seven Cures for a Lean Purse

On the dusty streets of Babylon, Bansir the chariot maker sat consumed by despair. In the distance rose the imposing walls surrounding the king's palace. Closer still stood the painted towers of the Temple of Bel. In the shadow of these grand structures lay Bansir's humble home and many other dilapidated dwellings. This was the true face of Babylon – a city where dazzling wealth coexisted with crushing poverty, all crammed chaotically together within its protective walls.

His friend Kobbi greeted him warmly and asked to borrow two shekels. Bansir replied that those two shekels were his entire fortune and he couldn't lend them. Kobbi, astonished, exclaimed, "If your purse is empty, why sit idle like a stone statue instead of working?" Bansir lamented, "We've always obeyed the law, worked diligently, and managed our earnings freely. Over the years, we've earned much, yet the joys of wealth remain only a dream. Surrounded by riches, we possess nothing. After a lifetime of toil, you, my dearest friend, come to me empty-handed. Why is this? Why do we struggle even for basic necessities?"

"Think of our children," Bansir continued. "Aren't they walking the same path? Must they, their families, and their children's children also live in this city of gold, sustained only by sour goat's milk and thin gruel?"

"From dawn to dusk, I crafted the finest chariots, naively hoping the gods would one day reward my efforts with riches. But they never did. Now I understand they never will, and that's the source of my sorrow. I long to be wealthy – to own lands, herds, fine robes, and a heavy purse. I'm willing to pour all my skill and wisdom into achieving this, asking only that my labor be fairly rewarded. Work, work, work! Yet I remain stuck. Why can't we claim the wealth that seems so effortless for the rich?"

Kobbi then posed the crucial question: "Perhaps we can discover how others acquire gold and follow their example?" Bansir mused, "Maybe there's a secret. We could seek wisdom from those who know." They decided to ask Arkad, the richest man in Babylon. Bansir interjected, "He's so wealthy, I fear if I met him in a dark alley at night, I might covet his bulging purse." Kobbi chided him, "Foolish! A man's wealth isn't measured by his purse. Without a steady income, even the fullest purse empties quickly. Arkad has a constant flow of gold; however generously he spends, his purse remains full."

"Income! That's the key!" Bansir exclaimed in sudden realization. "I desire an income that flows into my purse whether I'm sitting idle or traveling far. Arkad must know how to create such an income for himself." They resolved to seek Arkad that very day.

Kobbi then had his own epiphany: "I see now why wealth eludes us: we never sought it. You poured your heart into building the strongest chariots in Babylon – and you succeeded. I devoted myself to becoming a skilled harpist – and I succeeded. Where we directed our full efforts, we triumphed. The gods witnessed our dedication and let us continue. Now, we glimpse a light, bright as the rising sun. It beckons us to learn more, so we may gain more. With this new understanding, we will find the path to prosperity and honor."

Arriving at Arkad's residence, they shared their insight. Arkad's expression grew serious as he countered: "If, as grown men, you have nothing beyond basic sustenance, it means you either never learned the laws of wealth or failed to follow them."

Arkad understood early that ordinary men's sons, lacking inheritance, extraordinary talent, or genius, needed time and learning to achieve their desires. Time, he noted, is abundant for all, yet we often squander it instead of using it to build wealth. Learning, he explained, comes in two forms: direct teaching of unknown knowledge, or discovering methods to acquire knowledge independently.

Through his own struggles, study, and seeking wisdom from others, Arkad distilled the Seven Cures for a Lean Purse. He was later invited by the King to teach these principles:

The First Cure: Start Thy Purse to Fattening. Every livelihood is a river of gold flowing into the worker's purse, its size depending on their effort. Gold comes more readily to those who consistently save a portion of their earnings rather than spending it all. Conversely, it avoids those whose purses remain perpetually empty. The First Cure for a lean purse: For every ten coins you earn, spend no more than nine.

The Second Cure: Control Thy Expenditures. A truth of human nature: our perceived "necessary expenses" will always expand to match our income unless we consciously resist. Examine your habits; you'll find expenses that can be wisely reduced or eliminated. Make every copper coin count. Budget for your necessities. Never touch the tenth you save to fatten your purse. Refine your budget constantly; let it become an ally guarding your growing wealth. The budget's purpose is to ensure your needs are met, your reasonable desires fulfilled within your means, and your focus kept on cherished goals, free from impulsive whims. The Second Cure: Make a budget. It guides you to allocate funds for necessities, life's enjoyments, worthy desires, and ensures your spending never exceeds nine-tenths of your income.

The Third Cure: Make Thy Gold Multiply. The gold saved from your earnings is just the beginning. The income it generates is the key to building wealth. True wealth lies not in coins in a purse, but in the steady stream of income – that golden river flowing in, keeping the purse forever full. The Third Cure: Put every coin to work. Let your gold labor like beasts in the field, multiplying and bringing you income, ensuring a constant stream of wealth into your purse.

The Fourth Cure: Guard Thy Treasures from Loss. The paramount rule of investment is safety of principal. Never trust your judgment alone for ventures that might hide pitfalls. The wisest course is to seek counsel from experienced money masters. Often, their advice, freely given, is worth the very sum you plan to invest. Indeed, advice that prevents loss is priceless. The Fourth Cure: Protect your growing wealth. Use safe investments and the wisdom of experts to prevent your purse from being emptied.

The Fifth Cure: Make of Thy Dwelling a Profitable Investment. Owning and diligently managing your own home fills a man with drive and his household with hope and vitality. Therefore, Arkad advised everyone to own a dwelling to shelter themselves and their family. (Author's Note: While the original text spoke of buying land and building, repaying the lender like rent until the land was owned outright, the core principle translates to modern times. Owning property within your means builds equity and security. Interpretations may vary, but personally, owning a home within one's capabilities remains sound advice.)

The Sixth Cure: Insure a Future Income. We must weave a safety net for our old age and secure our family's future against the day we can no longer provide. Therefore, plan carefully. Invest in or set aside secure, long-term assets for unforeseen needs. Well-chosen real estate or land, considering future utility and value, can preserve or increase worth, providing income or sale proceeds for life's demands. Regularly depositing small sums with trustworthy lenders is also wise; interest will significantly increase your savings. The Sixth Cure: Ensure income for your future needs.

The Seventh Cure: Increase Thy Ability to Earn. People constantly seek progress. Those with keen minds improve their skills to better serve their patrons. Therefore, Arkad urged: "Increase thy ability to earn. Cultivate thy skills, study and become wiser, become more skillful." Strive to be at the forefront of progress. Keep pace with knowledge and skill, lest you be left behind. The Seventh Cure: Sharpen your skills and increase your competence. Your growing power to earn is your most valuable asset.

03. The Babylonian Money Lender

Rodan, the Babylonian spear maker, stood holding fifty gold shekels – a reward from the king. He could scarcely believe his fortune, yet for days he had wrestled with how to use these coins. Finding no answer, he sought the wisdom of Mathon, the money lender.

Rodan confessed his dilemma: the king, delighted with the new spear design Rodan created for the royal guard, had granted him this generous gift. But instead of joy, the gold brought him sleepless nights. From sunrise to sunset, friends and acquaintances appeared, pleading for a share of his newfound wealth. While he could firmly refuse most, his beloved sister was another matter.

His sister dreamed of her husband becoming a prosperous merchant. She begged Rodan to lend her husband the gold for this venture, promising repayment from future profits.

Mathon found the situation revealing. "Gold brings not only responsibility," he observed, "but alters a man's relationships. It grants power and the ability to do good, yet misplaced generosity can become a burden."

Faced with Rodan's quandary, Mathon posed a question: "If your brother-in-law himself came asking for the loan, what would he say he intends to do with it?"

Rodan replied, "He wishes to become a merchant, dealing in jewels and fine rugs like you."

"Then," countered Mathon, "I would ask: Does he know the trade? Does he know where to buy at the best price? Does he understand fair pricing for selling? Could he answer 'yes' to these?"

"No, he could not," Rodan stated firmly.

A wise lender, Mathon explained, must judge: Will this gold truly help the borrower and find its way back? Or will it be wasted by someone unskilled in its use, leaving the lender poorer and the borrower saddled with unpayable debt?

Mathon offered Rodan stern counsel: "Guard your fifty shekels. They are yours, earned by skill and royal favor. Share them only if you choose. If you wish to lend them to grow, do so cautiously and spread the risk. I dislike idle gold, but I despise foolish risk even more."

He advised against risking personal wealth to help family or friends: "Seek other ways to aid them. Better to squander your coins yourself than let others waste them through carelessness." (A personal note: This rings true.)

Drawing on his long experience, Mathon outlined safe lending principles:

The Safest Borrowers: Those who possess property worth more than the loan – land, jewels, camels, or goods that can be sold to repay. "Some pledges I hold are worth more than the loan itself."

Those with Earning Power: Honest individuals with the skill to earn through labor or service. "Barring misfortune, they can repay the gold and interest." This lending rests on personal creditworthiness.

High Risk: Those with no property and no reliable earning power. "Lend only small sums here as lessons, or if a trustworthy friend vouches for their character."

The Emotionally Driven: Never safe. Passion clouds judgment.

Mathon's final rule was absolute: "Never let a single shekel leave your purse until you see a safe path for its return."