The Richest Man in Babylon, by George S. Clason (first published as a book in 1926). My rating: 5 of 5.
You earn a decent living and still wonder where it goes. You have read the modern money books with their charts and apps. This one is a century old, told as stories about camel traders and moneylenders, and it says the same thing better.
What the book covers
Clason first wrote these parables as pamphlets that banks and insurance companies handed out to customers in the early 1920s. They were gathered into a book in 1926, and it has been in print ever since. The stories center on Arkad, a poor scribe who became the richest man in the city, and the lessons he teaches others.
Two lists carry the book. The seven cures for a thin purse cover saving, spending, investing, protecting what you have, owning your home, planning future income and growing your own skill. The five laws of gold explain how wealth comes, grows, stays and leaves.
What stayed with me
Pay yourself first. The famous rule is that “a part of all you earn is yours to keep.” Arkad sets it at a tenth. Today the easiest way to do that is a payroll deferral into a 401(k) or similar plan. For 2026 the IRS limit is $24,500, plus an $8,000 catch-up at age 50, or $11,250 for ages 60 through 63. The IRA limit is $7,500.
Expenses rise to meet income. Clason saw this a hundred years ago. When you get a raise, send the raise to savings before you get used to it. You keep the same take-home pay and build the account faster.
Make your money work. Gold multiplies when it is put to profitable use. Where you hold an investment matters too. Some belong in tax-deferred accounts and some in Roth accounts.
Stay in what you understand. Clason warns against ventures you do not know and promises of quick riches. One parable has a brickmaker lose his savings by trusting a jewel deal to a man who knew nothing about jewels. The lesson holds. Speculative deals also carry tax limits on losses that surprise people, so a loss on paper may not help your tax return the way you expect.
Help a friend carefully. One parable warns about taking on someone else’s burden. A modern version: a loan to family should be in writing and carry at least the federal minimum interest rate, or the tax rules may treat part of it as a gift.
A few notes
This is a parable, not a tax guide, and the dollar figures above are mine, not Clason’s. Contribution limits change every year, so check the current IRS numbers. Washington has no state income tax, so a pre-tax deferral here saves federal tax only.
Who should read it
Anyone starting out, anyone who earns well but never seems to get ahead, and parents who want a book their teenagers will actually finish. It is short and easy to read in one sitting, and good enough to read again every few years. The language is old fashioned and the setting is ancient, but readers who would never open a personal finance guide will read a story about a camel trader in debt. If you want a gift for a graduate, this is it.
Quotes are short excerpts credited to the author. As an Amazon Associate I earn from qualifying purchases. The price you pay does not change. I read this book on my own, and no one asked me or paid me to review it. This review is general education, not legal or tax advice. Laws change, and the right answer depends on your facts. Legal services are offered only through Centerbridge Law Group, PLLC, 1610 Commercial Avenue, Suite 203, Anacortes, Washington 98221. See Disclosures.