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Book of the Month — October: The Richest Man in Babylon
Key takeaways
- The central idea: always save at least a tenth of your income first — before you pay anything else.
- Let your money work — every coin invested today generates returns that earn returns of their own.
- The book teaches basic financial discipline through stories set in ancient Babylon — easy to read and remember.
- Suitable for anyone just starting to build financial habits — and for experienced investors as a refresher on the fundamentals.
"The Richest Man in Babylon" by George S. Clason is a book that presents timeless rules of money management through stories set in antiquity — and more than a century after it was written, those rules still hold.
What the Book Is About
Clason told the stories of merchants, craftsmen, and soldiers in ancient Babylon. Through their fates he conveys simple but powerful financial principles. It is not theory or academic treatise — it is stories you remember. The book was originally published as a series of pamphlets for banks and insurance companies in the 1920s; today it is available in Czech and English.
Two Core Ideas
Behind all the stories lie essentially two principles:
- Pay yourself first. Before you pay rent, food, or any other expense, set aside at least a tenth of your income. Not whatever is left over — right from the start. This discipline is the foundation of wealth-building.
- Make your money work. The money you set aside must not sit idle. It must be invested so it earns on its own. And reinvest the returns — that is the power of compound interest, which we also discuss in the article the power of compound interest.
Who the Book Is For
The book is ideal for anyone just beginning to think about personal finance — the language is accessible and the stories are short. But even an experienced investor will appreciate it as a reminder of the fundamentals: without discipline in spending and saving, there is no capital for ETFs or other investments to grow. If you are looking for more reading recommendations, check the book library on Hřivna.
What to Apply from the Book Right Away
Set up an automatic transfer of at least 10% of every pay cheque to an investment account — before you pay anything else. This one habit is what Clason considers the foundation of all wealth. What to do with the saved money is covered in the guide how to build your first portfolio.
FAQ
Is the book still relevant?
Yes — the core principles (pay yourself first, make your money work) are timeless. The specific investment instruments have changed since Babylon's day, but financial discipline has not. The book is an excellent foundation for anyone starting out.
How long does it take to read?
The book is roughly 150–200 pages and reads very quickly thanks to its story-based format. Most readers finish it in a weekend. It is available in Czech and English, in libraries and online bookshops.
What book do you recommend after Babylon?
After Babylon, the natural next step is practical tools — how to invest in ETFs, how to build a portfolio. You will find everything in the <a data-go="#/knihy">book section on Hřivna</a> or directly in the guide on how to build your first portfolio.