"Gold cometh gladly to any man who will put by not less than one-tenth of his earnings."
In the previous chapter, we saw how Nomasir (Arkad's son) lost all his initial wealth because he lacked wisdom. He was left with nothing but a clay tablet inscribed with the "5 Laws of Gold".
Desperate and humbled, he started following these laws. Slowly, the magic happened. His empty purse began to fill. He didn't just earn back his lost gold; he multiplied it beyond his father's imagination.
Today, we will decode the First 3 Laws of Gold. These are the laws of Wealth Accumulation.
1. The First Law: Gold Comes to Those Who Save
"Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family."
The Meaning: Money is attracted to people who respect it. If you spend 100% of what you earn, money will run away from you.
The "Wealth Tax" Strategy
In 2026, treat your savings like a tax. When you get your salary, imagine the government has increased taxes by 10%. You would complain, but you would survive, right?
Do the same for yourself. The moment salary hits your account, transfer 10% to a separate Investment Account. This is the seed that will grow into a forest.
2. The Second Law: Gold Labors for the Wise Owner
"Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field."
The Meaning: Money is a worker. It should never sit idle.
If you keep ₹10 Lakhs in a Savings Account, your money is "sleeping." It is lazy. Inflation is killing its value every day. But if you invest it in Assets (Stocks, Mutual Funds, Real Estate), your money starts working 24/7.
The "Children" of Gold:
- Your Capital is your Employee.
- The Interest/Profit it earns is the Employee's Child.
- You must make the children work for you too! (Re-investing the returns).
3. The Third Law: Gold Clings to the Cautious Owner
"Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling."
The Meaning: Once you have money, everyone will try to take it from you.
In Arkad's time, people trusted Brickmakers to buy Jewels. Today, we trust:
- Telegram Tips: "Buy this stock, it will double in 2 days."
- Taxi Drivers: "Sir, buy this crypto coin."
- Influencers: "This trading app will make you rich."
The Third Law warns you: Only invest based on wise advice. Listen to verified experts, SEBI Registered Advisors, or proven investors like Warren Buffett. If you invest recklessly based on tips, your gold will vanish.
Key Takeaways
- Consistency is Key: You don't need a high income to follow Law #1. You just need the discipline to save 1/10th.
- Compound Interest: Law #2 is the secret to wealth. Give your money time to multiply.
- Risk Management: Law #3 is about defense. Don't lose money trying to get rich quick.
Frequently Asked Questions (FAQ)
Q1: Where should I invest my 10% savings?
A: For beginners, a low-cost Index Fund (Nifty 50) via SIP is the safest and most effective way to follow Law #2.
Q2: Can I become rich without investing?
A: No. You can become "Rich" (High Income) by working, but you can only become "Wealthy" (Freedom) by Investing.
Q3: How do I identify a scam?
A: If an investment promises returns significantly higher than the market (e.g., 20% per month) with "Zero Risk," it is a scam violating Law #3.
Up next: Part 12 – The Last 2 Laws of Gold (How to Avoid Losing Money).
📚 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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