Wealth Building from the Old Testament

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

Dr. Thomas Stanley (author of The Millionaire Next Door) offers us this wealth-building tip from the Old Testament (he quotes a small business owner who is a millionaire next door):

He often recalled a lesson he learned from the Old Testament: something about 7 bad years and 7 good years. . . .  Be sure to store your grain when grain is plentiful.  In other words, build wealth when demand for one's product is high.

The story he references here is the one told in Genesis 41. Pharaoh has two dreams, asks his magicians and wise men to interpret them, no one can, then one remembers Joseph has the gift of interpreting dreams. They pluck Joseph out of jail (he was there because he was accused falsely) and he tells them what the dreams mean as follows (Genesis 41:25-36, NIV):

Then Joseph said to Pharaoh, “The dreams of Pharaoh are one and the same. God has revealed to Pharaoh what he is about to do. The seven good cows are seven years, and the seven good heads of grain are seven years; it is one and the same dream. The seven lean, ugly cows that came up afterward are seven years, and so are the seven worthless heads of grain scorched by the east wind: They are seven years of famine.

“It is just as I said to Pharaoh: God has shown Pharaoh what he is about to do. Seven years of great abundance are coming throughout the land of Egypt, but seven years of famine will follow them. Then all the abundance in Egypt will be forgotten, and the famine will ravage the land. The abundance in the land will not be remembered, because the famine that follows it will be so severe. The reason the dream was given to Pharaoh in two forms is that the matter has been firmly decided by God, and God will do it soon.

 “And now let Pharaoh look for a discerning and wise man and put him in charge of the land of Egypt. Let Pharaoh appoint commissioners over the land to take a fifth of the harvest of Egypt during the seven years of abundance. They should collect all the food of these good years that are coming and store up the grain under the authority of Pharaoh, to be kept in the cities for food. This food should be held in reserve for the country, to be used during the seven years of famine that will come upon Egypt, so that the country may not be ruined by the famine.”

Anyone want to guess who the "discerning and wise man" is that Pharaoh puts in charge of the whole land? The story continues with Genesis 41:37-44 (NIV):

The plan seemed good to Pharaoh and to all his officials. So Pharaoh asked them, “Can we find anyone like this man, one in whom is the spirit of God?”

Then Pharaoh said to Joseph, “Since God has made all this known to you, there is no one so discerning and wise as you. You shall be in charge of my palace, and all my people are to submit to your orders. Only with respect to the throne will I be greater than you.”

So Pharaoh said to Joseph, “I hereby put you in charge of the whole land of Egypt.” Then Pharaoh took his signet ring from his finger and put it on Joseph’s finger. He dressed him in robes of fine linen and put a gold chain around his neck. He had him ride in a chariot as his second-in-command, and people shouted before him, “Make way!” Thus he put him in charge of the whole land of Egypt.

Then Pharaoh said to Joseph, “I am Pharaoh, but without your word no one will lift hand or foot in all Egypt.”

This is one of my favorite sections in the Bible. Joseph has gone from a shepherd who was thrown into a well and then sold as a slave by his brothers through a series of events that landed him in jail in Egypt. And in one day he goes from the lowest of the low to the highest of the high. It's a wonderful story of redemption.

As far as personal finances go, it's also a story emphasizing the reason we all need emergency funds and extra savings. Things aren't always going to be as bright as they are today (we've all learned that over the past few years, huh?) There are times extra expenses pop up, times when someone can't work, times when an illness strikes. That's why we need to save now -- for the seven years of famine.

Only let's hope that they last for just a bit. SEVEN YEARS seems pretty severe! ;-)

Comments

[Old Limey]

Sometimes hard times CAN last longer than 7 years.

There was the Roaring Twenties - an era of great economic growth and widespread prosperity.

and then ---

After the stock market crash in 1929, it took 27 years to reach pre-crash levels.
The Great Depression began in 1929 and ended in 1941 when America prepared to enter World War II.

This is why Saving and having a large Emergency Fund cannot be overemphasized.

[Matt]

Well put Old Limey, I feel we are in a time that has not been seen since the great depression. Let the spin doctors call it what they want to "the great recesssion" "GD2" or anything else.

These are bad times. Those who have stored will make it through but those who haven't will have problems.

[Old Limey]

Matt:
Here's another example:

The Gay Nineties from 1/1/1990 to 1/1/2000
S&P500 APR= +15.29%
Nasdaq Comp APR= +24.46%
Nasdaq 100 APR= +32.36%
Real Estate Market - Rising the whole time

Followed by the Lost Decade from 1/1/2000 to 1/1/2010
S&P500 APR= -2.72%
Nasdaq Comp APR= -5.67%
Nasdaq 100 APR= -6.66%
Real Estate Market - A rise followed by a very big fall.

One's age can make a big difference in what kind of a financial start or retirement you have.

[Georgia]

This is a good reason I must save now, even though I am retired. The last few months have shown me how I need my emergency fund. I save it so I can pay cash for another car, if this one goes kerplunk.

However, one long trip, 2 short ones, and car trouble. I went to TN from MO in October. To get to TN took me 3 days and $1200. I have been saying thank you prayers over and over. I am poor beside so many of you, but I am doing well for me. In fact, in my small area, I am well-to-do beside many of the people on low SS & pension, food bank, medicaid, etc. When we know how well off we look to another, it adds blessing on blessing.

I went to GlobalRichList.com and put in my annual salary. I was in the top 6.72% of the richest people on earth. One lady said it was easy for those in foreign countries to feel rich on little. But there they are starving. Here, there is no excuse to. The lady said she sometimes only earned $5k per year. I ran that through the site and she was in the top 14.++% of the richest people on earth. This makes it easy for me to remember and thank God for how well off I am.