"I found the road to wealth when I decided that a part of all I earned was mine to keep."
Last time, we met Bansir and Kobbi, who were hardworking but poor. They went to ask Arkad (The Richest Man in Babylon) for his secret.
Arkad wasn't born rich. He was once a poor scribe, writing on clay tablets for hours every day, barely earning enough to buy food. He was just like many of us today—living paycheck to paycheck.
But one meeting changed his life forever. And that same lesson will change yours today.
1. The Meeting with Algamish
One day, a very rich money lender named Algamish came to Arkad's shop. He needed a carving done quickly. Arkad worked all night, despite his fingers hurting, and finished the job.
When Algamish came to pay, Arkad asked him a bold question: "Tell me how to become rich."
Algamish looked at the tired young man, smiled, and said the most famous line in financial history:
"I found the road to wealth when I decided that a part of all I earned was mine to keep."
2. The Great Misunderstanding
Arkad was confused. He asked, "But isn't all that I earn mine to keep?"
Algamish laughed. "Far from it! Do you not pay the garment maker? Do you not pay the sandal maker? Do you not pay for your food? You labor for everyone else except yourself."
The 2026 Indian Version:
Think about your Salary Day (1st of the month). What do you do?
- You pay the Landlord (Rent).
- You pay Jio/Airtel (Internet).
- You pay Zomato/Swiggy (Food).
- You pay Netflix/Amazon (Entertainment).
You are essentially working for your Landlord, for Ambani, and for Zomato. You are a slave to your bills. What is left for YOU? Usually, nothing.
3. The 1st Cure: Start Thy Purse to Fattening
Algamish gave Arkad a simple rule: "For every 10 coins you earn, spend only 9."
This means you must save at least 10% of your income before you spend a single rupee. This is called "Paying Yourself First."
If you earn ₹50,000, transfer ₹5,000 to a separate account (or SIP) immediately. Then run your house with the remaining ₹45,000.
The Magic: You won't even notice the missing money. Your lifestyle will adjust. But that small 10% will grow into a massive tree of wealth over time.
4. It’s Not About Math, It’s About Discipline
Most people say, "I will save what is left after spending."
Warren Buffett says, "Do not save what is left after spending, but spend what is left after saving."
In the modern world, "what is left" is usually zero. The temptation to buy the latest iPhone or sneakers is too high. You must steal money from your future expenses to build your future freedom.
Key Takeaways
- 10% is Non-Negotiable: No matter how low your income is, you must save 1/10th of it. If you can't save on low income, you won't save on high income either.
- Automate It: Don't rely on willpower. Set up an auto-debit SIP for the 1st of every month.
- Wealth is Hidden: Wealth is not the car you drive; it is the money you didn't spend.
Frequently Asked Questions (FAQ)
Q1: What if I have debt? Should I still save 10%?
A: Yes. Arkad advises saving 10% even if you have debts (use the remaining to pay debts). Building a habit of saving is crucial.
Q2: Where should I put this 10% savings?
A: In 2026, the best place is an Index Fund (via SIP) or a PPF account where it can compound tax-free.
Q3: Can I save more than 10%?
A: Absolutely! 10% is the minimum requirement. If you can save 20% or 30% (FIRE method), you will reach financial freedom much faster.
Up next: Part 3 – The 2nd Cure (Control Thy Expenditures).
📚 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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