She sends him off to the pyramids after telling him that he must give her a percentage of what he finds.  Before he gets to the pyramids, he meets an old man who tells him that Santiago has found his Personal Legend, which means that he is following the correct life path.  Santiago then sells the rest of his sheep to finance his travels, but he is robbed shortly afterwards.  He must then take on a job with a crystal merchant to replace his funds.  By this point, Santiago feels that he is making clear personal choices for himself even though he has to pay the consequences of his mistakes.

The central concept of the novel is the personal journey, in which Santiago discovers his purpose in life. He travels from Andalusia in Spain to the Egyptian pyramids in search of treasure. At the pyramids, a thief tells him to return home, as the treasure is in the ruins of the church in which Santiago first dreamed of it. The story is about how the journey itself means more than the destination.

Every part of Santiago's journey is interconnected, a collection of people, places, and events that make up his destiny. On the way to Africa, a man tricks Santiago into believing he will take him to the pyramids and robs him instead. Santiago then works for a crystal merchant in order to make money for his travel to the pyramids. Santiago meets an Englishman who teaches him that "when you want something in your heart, that's when you are closest to the Soul of the World."

Santiago learns that the Soul of the World is the essence of life itself: everything on earth, living and nonliving, have a divine connection and are part of God. Santiago falls in love with an Arabian girl named Fatima, who tells him that they can only be married after he finishes his journey. He later learns that love cannot stand in the way of his personal destiny; if their love is true, Fatima will wait for him. Santiago meets the Alchemist, who helps him cross the rest of the desert and also teaches him about the Soul of the World. As they journey through a territory of tribes at war, the alchemist helps Santiago become a simoom, a type of dusty wind in the Sahara. Santiago then reaches the pyramids, where he learns that he must return to his home.

The Alchemist is a fable. A fable has a meaning; it is a cautionary tale. The main character is Santiago which means "saint" in Spanish. He is a shepherd man. He has a dream over and over. It bothers him so much that he seeks help from a gypsy. She tells him, that yes it is important. He must go to the Egyptian pyramids to find a treasure. Ok. He he decides to go but first he meets an old man who tells him you should be looking around and listening. Pay attention to omens the old man says, who is really a king. The king says "the principle of favorability, beginner's luck. Because life wants you to achieve your destiny."Santiago starts his long journey leaving his sheep behind.

This is the story or fable: one must leave behind what they know, what is familiar, to find what is needed to live.

Look at the myth of Odysseus. Look at Homer's The Odyssey and James Joyce's Ulysses. They are all the same story, perhaps the only story there is about how to live.