The Story of Joseph

For those of you new to Free Money Finance, I post on The Bible and Money every 
Sunday. Here's why.

I've blogged a lot about spending less than you earn but lately have been talking a good 
deal about this concept's close cousin "save in times of plenty for times of want." In secular terms, this means "get an emergency fund." From a biblical standpoint, it means to take action on the wisdom of developing a surplus.

As I've addressed this issue on Sundays, several readers have commented about how the current economic times we're in reminds them of the story of Joseph. For those of you not familiar with this biblical story (found in Genesis 41), here are the highlights:

• Pharaoh (king of Egypt) has a dream -- none of the magicians and wise men of Egypt can interpret it.
• Pharaoh's chief cupbearer remembers a man from prison who could interpret dreams.
• Pharaoh send for this man (Joseph.)
• Joseph interprets the dream, saying that there will be seven years of plenty followed by seven years of famine.
• Joseph advises Pharaoh to appoint a wise man to store up in the years of plenty for the later seven years.
• Pharaoh notes that there's no one wiser than Joseph and makes him second in command.
• Joseph proceeds to devise a plan for storing a boatload of food up during the seven years of plenty.
• In the seven years of want, Joseph sells food to the citizens of Egypt and to neighbor countries, making Pharaoh massively wealthier than he was before.

FYI, if you want a rather comical version of this scenario -- though not biblically accurate 100% -- check out these two videos featuring a young Donny Osmond as Joseph here and here.

This story is a GREAT illustration of why you should save up in times of plenty -- because there WILL be less prosperous times, and you'll need your savings to help you manage. People who applied this wisdom over the past years aren't nearly having as tough a time these days as those people who spent all they had during the good times. And the key to it all? Spending less than you earn to create a surplus and using that surplus to create an emergency fund.

I know, I know. It's simple to say but not easy to implement. That said, if you want to have a solid financial foundation, it's vital you make the effort to create a surplus. Otherwise, you'll be left wanting when the years of famine arrive.

Comments

[The David]

Very applicable to today's times. The people that saved up money during the boom years are in a position to take advantage of the opportunities of a down market, making themselves more wealthy in the long run.

[Baker @ ManVsDebt]

It's always hear and study history to get a sense of how to deal with the present. I appreciate you taking Sundays to talk about The Bible and Money. We can learn a lot from these type of posts!

[gmsc]

This story is why I often say, "The last time any government made an intelligent economic decision, it was such a historic moment that they recorded it in the Bible!"

[Lee]

Saving money and cautious spending have never gone out of style with most people. Only the ones in the commercials who will only be happy after they purchase just get this one thing. Happiness and peace of mind come from within...always have and always will.

[Corporate Barbarian]

GMSC, that was a good one! I've mentioned that story to my sons whenever they received money for birthdays, communions, etc. We make sure that they put some money away instead of blowing it all on the newest video game or gadget. Thanks for the post.

[Shannon]

The problem for me is not necessarily developing a surplus but recognizing when there is surplus surplus (i.e., I am hoarding more than I need and not giving generously). Any suggestions for finding that line and not crossing it?

[Victoria]

Very basic, sound advice. Of course, I knew of the concept but did not practice it early on. Now I am drilling the information into my three children. Hopefully, they will be more secure financially in their middle age than I am. Thanks.