47 pages • 1 hour read
George Samuel ClasonThe Richest Man in Babylon
Nonfiction | Book | Adult | Published in 1926A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
Chapters 2-3Chapter Summaries & Analyses
Chapter 2 Summary: “The Man Who Desired Gold”
Clason begins this parable by introducing a Babylonian man named Bansir, who is a chariot-builder by trade. Bansir lives in poverty within the walled city of Babylon, where rich and poor live in close quarters to each other. Bansir’s best friend, the musician Kobbi, questions why Bansir is not working on a chariot since he desperately needs money. Bansir replies that he had a dream in which he was rich, and when he woke up, he had a “feeling of rebellion” and did not want to work (7). Although Bansir wishes to be “a man of means,” he now feels that no matter how hard he works, the gods will not notice or reward him (8). Kobbi replies that he feels the same way; his earnings from music-making do not last long, and he worries his family will go hungry. Bansir laments that although he works often, he feels he is “getting nowhere” (9). The two men discuss their mutual friend Arkad, a wealthy man with a constant income that keeps him comfortable. Bansir and Kobbi agree that they should go to Arkad to ask his advice and decide to invite along other friends who are struggling financially.
Chapter 3 Summary: “The Richest Man in Babylon”
Arkad is the richest man in Babylon, renowned for his generous spending on charities, his family, and himself. When his friends question why he has accumulated so much wealth despite coming from similar circumstances, Arkad scolds them and reminds them that they must understand and follow the “laws that govern the building of wealth” (11). Arkad warns against spending money too liberally. He reminisces about his younger days when he decided that being wealthy would increase his enjoyment of life but also recognized that he would not gain wealth through luck or inheritance. Instead, he committed himself to studying how to become financially stable. His first job was as a clay tablet scribe, which earned him little money. He sought advice from Algamish, the local money lender, who agreed to tell him his wisdom in exchange for completing a writing task. Algamish advises Arkad to always save 10% of his income, writing, “A part of all you earn is yours to keep” (14).
Algamish likens saved money to “slaves,” which can work for Arkad by earning interest on investments (14). Arkad faithfully follows this advice and begins to save 10% of his earnings. He finds that he can survive on less money but is tempted to spend his growing pile of savings. After one year, Algamish questions Arkad about his finances, who reports that he successfully saved 10% but also reveals that he gave all of it to his friend who is traveling overseas to buy jewels. Arkad hopes that by selling these jewels in Babylon, he will become rich. Algamish scolds Arkad for trusting a brickmaker to secure a good trade in jewels.
Arkad’s friend brings back worthless glass, and Arkad begins saving again, keeping in mind Algamish’s warning to not put his trust in inexperienced people. Arkad invests his new savings in bronzemaking. He earns new income but spends the money on fine food and clothes. Algamish tells him to not spend his income too easily, or it cannot continue to “work” for him (15). Many years later, Algamish returns and is pleased to see Arkad living well. He summarizes the lessons Arkad has put into action: he lived on less than his income, took advice from experienced people, and made his savings work for him. Seeing Arkad’s competence, Algamish makes him the manager of his vast estate, which Arkad improves, and Algamish then makes him one of his heirs.
Arkad’s friends question him for advice, and Arkad repeats Algamish’s words and advises them to save a minimum of 10% of their earnings. He also tells them to invest their earnings, but to be very cautious about what they choose to invest in, saying, “A small return and a safe one is far more desirable than risk” (17). Arkad tells his friends to make sure they enjoy life and not “overstrain” to save too much (17). Arkad’s friends leave, and some of them do not understand his advice. Others are envious and resent Arkad for not simply sharing his fortune with them. Lastly, some friends act on Arkad’s advice and continue to save and consult him for investing advice. Clason concludes this chapter with another reminder to always save part of your earnings.
Chapters 2-3 Analysis
In Chapter 2, Clason engages the reader by creating a relatable and likable protagonist, Bansir, who works hard but feels discouraged when he cannot get ahead. By portraying Bansir as someone who expects “the gods” to reward him for his work, Clason warns the reader against expecting deities or luck to enrich them, instead steering them towards actionable rules (8). In doing so, Clason establishes a theme of taking control of one’s financial destiny by creating healthy financial habits. He contrasts successful men, such as Arkad, with people who expect wealth but do not have the discipline or consistency to acquire and keep it. For example, after Arkad shares with his friends everything he has learned, some of them are too jealous and distracted by their resentment of Arkad to focus on applying his lessons.
Clason’s second parable (Chapter 3) introduces a new main character, Arkad. The first part of the parable is a flashback to when Arkad was young and inexperienced in personal finance. Young Arkad learns lessons in earning, saving, lending, investing, spending, and managing his money. After an unsuccessful job, he consults Algamish on how to make more money. While Arkad follows Algamish’s advice and begins to earn and save more, he does not invest his money wisely. By creating obstacles to Arkad’s success, Clason manages to work another financial rule into his story: invest your money wisely with experts in their fields. While it is not one of his explicit instructions, Clason’s story also hints at the importance of networking and gaining the trust of other successful people. While Arkad does become wealthy due to following Algamish’s rules, he also benefits from approaching Algamish in the first place and proving himself to this wealthy individual.
In his descriptions of Babylon’s walled city, Clason contradicts his earlier claim that most of the city’s inhabitants were wealthy. Instead, he describes, “a mixture of grandeur and squalor, of dazzling wealth and direst poverty, crowded together without plan or system within the protecting walls of the city” (6). Clason acknowledges that not all of Babylon’s citizens were well-off as he refers to “barefooted beggars” and scores of enslaved people (6). The author uses these unfortunate characters to imply that Bansir and his friend Kobbi are hardly better off than slaves, since they are “living slavish lives. Working, working, working! Getting nowhere” (9). This dramatic comparison underscores how Bansir—and the reader—need to learn more about finance in order to avoid living in poverty. It also underscores that like most societies, Babylon was not perfect.
