The Richest Man in Babylon by George S. Clason is a global bestseller. Much of it was written in the 1920s which just goes to show that the principles of managing money remain the same through the ages. The principles of wealth creation are not difficult; it is just up to us to follow them.

The Richest Man in Babylon is set 6000 years ago in the time of ancient Babylon which the author describes as "the cradle in which was nurtured the basic principles of finance now recognised and used the world over".

Through parables in which a rich man shares his knowledge with the people of Babylon, the book lays out simple truths about acquiring money, keeping money and making money earn more money. In one parable Arkad, the richest man in Babylon, teaches the people about the seven cures for a lean purse:

Start thy purse to fattening

The basic rule of creating wealth is to save one-tenth of all that you earn. Arkad, the richest man in Babylon uses this example: if you have a basket and each morning you put ten eggs into it and in the evening you take out nine eggs, what will eventually happen? The basket in time will overflow. By saving a tenth of your income, so will your purse.

Control thy expenditure

So how do you save one-tenth of all you earn? You control what you spend. As Arkad says "That what each of us calls our 'necessary expenses' will always grow to equal our incomes unless we protest to the contrary."

Make thy gold multiply

Invest your money wisely so that it can grow. "A man's wealth is not in the coins he carries in his purse; it is the income he buildeth, the income that continueth to come whether thou work or travel."

Guard thy treasures from loss

Beware of scams; everyone is presented with opportunities that promise great wealth but always make sure you understand the risks of an investment and seek advice. "Is it wise to be intrigued by larger earnings when thy principal may be lost? I say not. Be not misled by thine own romantic desires to make wealth rapidly". Arkad told his students to seek the wisdom of those people who are experienced in handling money for profit. "Consult with wise men. Secure the advice of those experienced in the profitable handling of gold."

Make of thy dwelling a profitable investment

A very simple principle - own your own home as soon as possible rather than paying rent.

Insure a future income

You need to make provision for your old age and for protecting your family if you are unable to provide for them. "No man can afford not to insure a treasure for his old age and the protection of his family, no matter how prosperous his business and his investments may be."

Increase thy ability to earn

Invest in yourself and your skills. The only way to increase your earnings is to increase your productivity. "The more of wisdom we know, the more we may earn. The man who seeks to learn more of his craft shall be richly rewarded".