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Proverbs 21:20 meaning

Store your resources in a way that honors God and blesses others.

There is precious treasure and oil in the dwelling of the wise, But a foolish man swallows it up. (v.20) This proverb is traditionally attributed to King Solomon, who ruled Israel from approximately 970-931 BCE as its third king after his father, David. The imagery of “precious treasure and oil” suggests abundance, stability, and blessing. The term “dwelling of the wise” indicates a home where discernment dwells and resources, both spiritual and material, are handled responsibly. By contrast, the proverb presents a “foolish man” who cannot hold onto blessings, ultimately squandering what he has. The foolish person’s unrestrained appetite undermines any advantage he might receive, emphasizing the self-destructive path of uncontrolled impulses.

When this proverb speaks of “precious treasure and oil,” it underscores the importance of conservation, proper management, and godly stewardship. Plenty does not automatically translate to permanence, because a foolish perspective can easily dissipate valuable gifts. Elsewhere, Jesus emphasized the need to invest our treasures for eternal gain, rather than fritter them away in earthly pursuits that eventually lose their value (Matthew 6:19-20). Learning to steward blessings wisely requires adopting a perspective that values long-term outcomes and alignment with God’s ways.

The divergence between “the wise” and “the foolish man” amplifies the broader theme throughout Scripture that wisdom is not merely the acquisition of knowledge, but living in reverence of God and wielding understanding in practical, daily decisions (Proverbs 9:10). Far more than just restraint over earthly wealth, this proverb points to a heart condition that separates lasting provision from hasty consumption. Remaining steadfast, prudent, and alert to the voice of the Lord secures the enduring “oil” of blessings that foolishness would readily waste.

Proverbs 21:20