Money Lessons from the Parable of The Rich Fool

Image of a barn full of crops, representing the parable of the rich fool in Luke 12
In the biblical parable of the rich fool in the Luke 12, the landowner asks, "What shall I do, for I have nowhere to store my crops?" To avoid becoming a rich fool, we must ask how much is too much, and when we have enough.

There are plenty of Bible verses on money, but the parable of the rich fool jumps out because of its relevance to how we structure our personal finances in 21st Century America. The parallel of the rich landowner in Luke 12 to our modern philosophy of wealth accumulation serves as a stern warning about the dangers of excess.

The rich fool parable gave me a gut check when I was starting to seriously pursue financial independence and early retirement. I see myself so clearly in the story that I took on the identity of The Rich Fool and started a personal finance blog. It continues to guide me as I strive for a life defined by radical generosity instead of comfort and security.

Most of all, the rich fool illustrates the dangers of saving with no ceiling for a future that isn’t guaranteed. Unfortunately, that’s exactly how most people approach their finances today. Instead of giving generously out of a historically unprecedented abundance, we hoard our wealth. We operate with a scarcity mindset, planning for the “what ifs” and worst-case scenarios. Like rich fools, we build bigger barns.

Of course, our barns look much different. Instead of stockpiling grain, we build bigger retirement accounts, college funds and stock portfolios. The investment vehicles change, but the result is the same. We lay up treasure for ourselves without asking whether there’s a higher calling for our possessions.

Parable of The Rich Fool Summary

The parable of the rich fool appears in Luke 12:13-21, where Jesus dispels the false belief that more possessions makes us more secure. Using barns as an symbol of abundance, he challenges the need for building bigger storehouses when we already have enough. It’s an indictment of hoarding at the expense of generosity.

Jesus tells the parable of the rich fool in response to a question about a family inheritance dispute. Rather than acting as a judge between brothers, he addresses the root cause of the quarrel.

‘Take care, and be on your guard against all covetousness, for one’s life does not consist in the abundance of his possessions.’ (Luke 12:15)

After teaching this lesson, Jesus introduces the crowd to a rich man whose land produced a bumper crop. There’s just one problem: The landowner has nowhere to store his excess grain. His barns are already full.

The land of a rich man produced plentifully, and he thought to himself, ‘What shall I do, for I have nowhere to store my crops?’ And he said, ‘I will do this: I will tear down my barns and build larger ones.’ (Luke 12:17-18)

At this turning point, the rich man chooses to store up goods so he can “relax, eat, drink, be merry” for years. In that moment, God calls him a fool. The man dies that night, and no one will get to enjoy the things he has prepared for himself. It’s all been for nothing.

The parable ends with Jesus giving the crowd the takeaway. A rich man turns into a rich fool when he hoards excess wealth at the expense of generosity.

‘So is the one who lays up treasure for himself and is not rich toward God.’ (Luke 12:21)

Meaning of the Parable of The Rich Fool

Although the parable of the rich fool ends there, Jesus continues to teach the deeper meaning. In a section of Scripture that mirrors Matthew 6, he warns us not to be anxious about food or clothing. Instead of worrying about tomorrow, he tells his disciples to invest in eternal purposes and let God take care of their physical needs. Jesus ends the lesson with a call for his followers to sell their possessions and give to the needy.

Here’s the meaning of the parable of the rich fool: As we plan for the future, we must also leave room for generosity. If we focus on stronger security nets and don’t see the needs around us, we’re nothing but rich fools.

To prevent this, we have to first identify the “barns” in our lives. I define a financial barn as any savings or investment vehicle where wealth accumulates for use far into the future. It could be savings designated for a specific purpose, like a 401K retirement account, or funds being stockpiled but not earmarked, like a wealth-building account. Or maybe it’s a non-financial investment where extra money gets dumped, like a vacation home.

None of these things are inherently evil, and many of them could be wise investments. Just look at the rich fool in the Bible. He comes into the story as a rich man, but he leaves as the rich fool. He doesn’t get criticized for having full barns; he’s condemned for building bigger barns to store his excess.

The key, then, becomes building the right-sized barns.

Here's the meaning of the parable of the rich fool: As we plan for the future, we must also leave room for generosity. If we focus on security and don't see the needs around us, we're nothing but rich fools.Click To Tweet

Lessons from The Rich Fool in Luke 12

The obvious lesson from the parable of the rich fool comes from Jesus’ first words in the passage: Life isn’t all about an abundance of possessions. As I dig deeper, however, I see several other important financial truths. These additional insights continue to play a role in shaping my approach to personal finance.

Wealth brings more anxiety

When life becomes all about possessions, we’re never satisfied. We always want more, which robs us of experiencing the joy of what we already own. This leads to a constant state of anxiety about never having enough. We see this as the rich fool worries about where to store his excess, even as he makes plans for a lifetime of comfort. Greed and worry go hand in hand. To avoid this, we need to come up with a definition of rich that guides our financial decisions.

Riches stifle generosity

The endless pursuit of riches can lead to destruction and cause us to wander away from our faith. Because we are born with nothing and die with nothing, we should be content with food and clothing. When we’re blessed with more than that, it’s for the purpose of generosity and good works. There’s a negative correlation between the desire for riches, especially excess wealth, and capacity for generosity. There is a limit to how many possessions we should accumulate.

Money can disappear at any time

The foolishness of the parable really comes down to the rich man putting his faith in the uncertainty of wealth. Not only can money disappear at any time — whether it’s the result of a stock market crash, job loss or emergency — but it’s ultimately useless. Instead of living life in pursuit of fleeting riches, we should use the resources while we still have them to invest in things that last.

Faith requires financial dependence

Financial independence seems like a worthy personal finance goal. It even masquerades as responsible planning and good stewardship. For the Christian, however, it leads to independence not just from the need to work, but also from God. We have to leave room in our finances for dependency on God and test him in our giving. We must actually pursue financial dependence, not independence.

The default approach to personal finance in America today has become to save more and invest more, which puts us at risk of becoming rich fools.Click To Tweet

How Much Money Is Enough?

If there’s one big takeaway from the parable of the rich fool, it’s the warning against stockpiling possessions. But the line between responsible saving and hoarding gets fuzzy fast. So how do we know when we have enough? And how much is too much?

Most of us don’t even ask those questions. The default approach to personal finance has become to save more, which puts us at risk of becoming rich fools.

The answer lies in an approach to personal finance that makes expanding room for generosity, especially as wealth increases. It’s why I’m developing a philosophy of financial finish lines around the idea of “barns” and intentionally limiting my saving through increased giving. That’s the only way I can fight the temptation to build bigger barns.

The parable of the rich fool gives me pause every time I set aside more for the sake of more. It’s a healthy struggle that forces me to balance financial independence with generous giving. And it gives me a reality check whenever I start thinking life is all about an abundance of possessions.

Additional Reading for Rich Fools

If you’re new to this blog, here are some additional concepts to help you take the next step in your journey of generosity:

Ladder of generosity: All personal finance success begins with goals, and that applies to radical generosity as well. It’s a journey that starts with small steps, and it requires an intentional approach to budgeting that creates room for increasing levels of giving over time.

Personal spending limit: A “life-giving budget” should make room for basic needs and a joy-filled life, but limit empty consumerism and lifestyle inflation. By implementing an annual spending cap, you can direct extra income into higher saving and giving rates.

Financial finish lines: To apply the lessons of the rich fool’s story to our lives, we have to wrestle with the question of how much we really need for long-term security. Financial finish lines find a balance between saving and giving by ensuring you build the right-sized “barns” in areas like retirement, college funds and wealth-building accounts. 

Donor-advised funds: A donor-advised fund is a powerful personal finance tool that pushes the limits of generosity by setting up a “barn” for charitable giving. It introduces discipline for giving, empowers spontaneous giving, and acts as a guardrail against becoming a rich fool. 

Privilege hoarding: Generosity doesn’t end with charitable giving. Just like you can hoard wealth at the expense of generosity, you can also hoard privilege in a way that denies opportunities to the less fortunate. It’s time to use our power and privilege, not just our wealth, to fight for justice. 

The Rich Fool

I'm a journalist turned marketer navigating the intersection of money and faith, and trying to find the balance between financial independence and radical generosity. I'm a Christian, husband, father and marketing executive figuring out how to wisely manage excess riches I never expected to receive.

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14 Responses

  1. Thomas Roth says:

    Maybe you’d prefer to be the grasshopper who did NOT prepare for tomorrow while the ant worked and worked for some measure of safety against the uncertainty of the future.

  2. Moriah R. says:

    What is your name and can I use this article it to reference you in a paper?

  3. Vincent mwaba says:

    Fantastically explained!!!! Wow!!!

  4. Fantastic article, and a unique take in the FI-crazed personal finance blogosphere. I’ve had to challenge myself on this front before multiple times. Am I driven to pursue financial freedom (in the form of FI) because I don’t rely enough on my faith for the Lord to provide? He says worry not where your next meal shall come from. And we know it’s easier for a wealthy man to pass through the eye of a needle than it is to enter the gates of heaven.

    My own personal primary motivation in pursuing FI was to obtain the time freedom to be able to minister to my wife, my son, my extended family and my neighbors in a way that I wasn’t able to before. For me, financial freedom = time freedom. The money factor is only a means unto an end.

    Really enjoy the concept of your blog. Will be following with interest. Keep up the good work!

    • Thanks! I’m trying to find the right balance as well. I’m sort of operating on parallel tracks: saving aggressively and giving aggressively. The interesting thing is that my income has increased dramatically over the past 12 months as I have taken steps of faith in giving. I don’t think that’s a coincidence. I’m not a proponent of the prosperity gospel, but I do believe God entrusts more to those who are faithful with little. When he blesses us with more, I believe it’s for the purpose of generosity. It will be interesting to see whether radical generosity actually gets me to financial freedom faster through more blessing.

      I think there are legitimate reasons to pursue financial freedom, including the one you mention. Financial freedom could provide the ability to spend more time with my family, write more, go into ministry, serve more at my church, volunteer, etc. Those are great reasons for pursuing financial independence. I’m trying to guard against hoarding wealth solely for the purpose of taking it easy and living a comfortable life. That seems to go against the Christian calling.

      • Mr. Financial Freedom Project says:

        Your experience jives with mine. Staying faithful with tithing even when it seemed like it wasn’t in the budget is a big part of my personal testimony and resulted in my wife and I seeing God move in ways we wouldn’t have without. He’s always provided.

        I do not adhere to prosperity preaching either, though I have family members who do. Makes for interesting discussion at family get-togethers, as well as via the occasional email… 🙂

  5. Lisa says:

    The more I read parables, the less I understand. Sometimes I think it’s about balance and sometimes I think, well maybe I should sell everything.

    • It’s really interesting to look across stories about money in the Bible and examine the differences. The rich landowner gets called a fool for hoarding wealth, even though he started off rich. The rich young man can’t achieve eternal life until he sells ALL his possessions. The tax collector Zacchaeus get praised for giving away half his possessions. The rich religious rulers get criticized for giving large sums of money out of their abundance. I think parables about money are meant to be mirrors for self-examination about our hearts and motivations, rather than prescriptions for what to do with our wealth. If we’re not wrestling with how we use our money, then we’re probably not doing enough soul-searching.

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