"Gold is reserved for those who know its laws and abide by them."
Imagine your father calls you today and gives you two choices:
- Option A: A bag full of ₹1 Crore (Gold).
- Option B: A simple clay tablet with 5 rules written on it (Wisdom).
Be honest. Most of us would grab the money and run. We think, "I will take the money now and learn the wisdom later."
And that is exactly why most people eventually lose it. In this chapter, Arkad proves that Financial Wisdom (IQ) is infinitely more valuable than Capital (Gold).
1. The Boy Who Chose Gold
Arkad had a son named Nomasir. Before handing over his immense estate, Arkad wanted to test him. He gave Nomasir one bag of gold and one clay tablet with the "5 Laws of Gold" and sent him into the world for 10 years.
Nomasir, being young and arrogant, ignored the tablet. He thought the gold was enough.
The Disaster:
- He went to Nineveh and made "friends" who were actually scammers.
- They convinced him to bet on horse races (Gambling). He lost heavily.
- He invested in a business managed by a man who had no experience. He lost the rest.
Within a few months, the son of the Richest Man in Babylon was penniless. He had to sell his fine clothes and work as a slave just to eat.
2. Why Lottery Winners Go Broke
This story is 4,000 years old, but it happens every day in 2026.
Statistics show that 70% of lottery winners go bankrupt within 5 years. We see the same with:
- KBC Winners: Many winners of Kaun Banega Crorepati lost all their money because they didn't know how to manage it.
- Crypto Luck: People who made accidental millions in a Bull Run often lose it all in the Bear Market.
- Inheritance: Kids who inherit property without earning it often sell it to buy luxury cars.
The Rule: "Gold slips away from the man who does not know how to keep it."
3. Wisdom Creates Gold
Nomasir, now poor and hungry, finally remembered the clay tablet. He read the "5 Laws of Gold".
He realized his mistake. He started working hard again. But this time, he applied the laws:
- He saved 10% of his small earnings.
- He sought advice from wise men, not gamblers.
- He compounded his returns.
Over 10 years, he didn't just earn back the gold he lost; he multiplied it many times over. When he returned to his father, he gave back 3 bags of gold for the 1 bag he lost.
"If you have wisdom, you can create gold from nothing. If you have gold but no wisdom, you will soon have nothing."
4. Financial Literacy is the Key
In 2026, your "Clay Tablet" is Financial Education.
Don't chase "Tips" or "Signals." Chase knowledge. Read books. Understand how Mutual Funds work. Understand Taxation. Understand Inflation.
If you focus on building your Financial IQ, the money will automatically follow. If you chase money without IQ, you are just a temporary custodian of that money.
Key Takeaways
- Wisdom > Wealth: Give a fool a million dollars, and the party will last a week. Give a wise man a dollar, and he will build an empire.
- Experience is Expensive: Nomasir learned the hard way. You don't have to. Learn from the mistakes of others (read books).
- Respect the Laws: Money is not magic; it is physics. It follows laws. If you break them, you break your bank account.
Frequently Asked Questions (FAQ)
Q1: What are the 5 Laws of Gold?
A: They are the specific rules of investing taught by Arkad. We will cover the first 3 laws in detail in the next post (Part 11).
Q2: Why is Financial Literacy not taught in schools?
A: It is a tragedy. Schools teach us how to work for money, but not how to make money work for us. You must take responsibility for your own financial education.
Q3: Can I recover if I lost money in trading?
A: Yes. Nomasir lost everything and came back stronger. Stop gambling, start learning, and rebuild slowly using the laws of gold.
Up next: Part 11 – The First 3 Laws of Gold (How to Multiply Wealth).
📚 Credit & Disclaimer:
This post is a summary based on the classic bestseller "The Richest Man in Babylon" by George S. Clason.
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