Earning a Living - Earning a Life

Parshat Vayakheil-Pekudei 5767 - March 12, 2007
Essay #24
Breslov Research Institute © 2007

Hope your Purim was great and your forthcoming Pesach will be even better and greater. May you all be blessed with everything good in this world and the next!

This week's Torah reading describes the contributions the Jews made in order to erect the Sanctuary in the desert. Contributions of money, materials and time were solicited for this holy project. In the previous essay (#23), we presented Rebbe Nachman’s advice for how we can be credited with building a Sanctuary no matter what type of work we do. Our mindset is the key factor. If we focus our minds on spirituality, then even when we are fully engaged and involved in the mundane, all our efforts are considered sanctified!

As mentioned at the start of these essays, the idea for this series came from Reb Elchonon Krantz of Philadelphia. Along the way, Reb Elchonon has made quite a few suggestions as to which ideas should be discussed. At first, I thought it best to introduce Rebbe Nachman’s approach to livelihood. Having covered a good part of that ground, we will now begin to focus on some of Reb Elchonon’s suggestions in this and succeeding essays.

Question: What is the Torah’s view of gambling? Perhaps more to the point, is “investing” in a business similar to “gambling” with your money? In other words, what should be said about risk-based investing? Good questions.

Firstly, gambling is forbidden. The Talmud teaches that anyone whose source of income derives from gambling is invalidated from ever giving testimony as a witness (Sanhedrin 24b). However, the Talmud qualifies this by saying it applies only when the person has no other source of income. If his gambling provides a “side income” or an “occasional income,” his testimony is not invalidated. So, is gambling forbidden or not?

The following answer applies to both questions—the ethics of gambling and of taking a gamble when investing in a business:

Though charging interest is absolutely forbidden, there are times when a person lends money with interest as a partner in a business. Such a loan (which is always considered a risk-based transaction) is permissible (see Yoreh Deah 160-180; Kitzur Shulchan Arukh #65-66, for the forbidden and acceptable situations). The Talmud describes: “If the venture is closer to earning a profit than suffering a loss, the lender is considered wicked [he’s only looking for profit and will pull out the rug from underneath the borrower to save his skin]. If the venture is closer to suffering a loss than earning a profit, the lender is a pious man [for he’s willing to invest to help others profit, even if he loses his own money]. If the chances are about even [for the venture], then the lender is a regular guy” (Bava Metzia 70a).

In a nutshell, every business venture is a risk. Yet, generally speaking, we are encouraged to invest. Our Sages teach that a person who possesses 200 shekalim (about a year’s worth of expenses in those days) should not accept charity. If he has only 50 shekalim, but that amount is invested in a business, it is compared to having 200 shekalim (Pe’ah 8:9) and he is similarly prohibited from accepting charity.

So what kind of investment should we look for? Here’s where my Rosh Yeshivah’s advice comes in very handy. He used to say, “We find that we have five books of the Chumash (the Five Books of Moses). However, the Codes of Law comprise only four books: Orach Chaim, Yoreh Deah, Even HaEzer and Choshen Mishpat. Why is the Code of Law short one volume? Because the fifth book is common sense!” (Rabbi Eliyahu Chaim Rosen).

When looking into investments, we must choose the logical and solid ones, sort of what is commonly known as the “widows and orphans” funds. Ponzi schemes must be avoided at all costs, as well as other high-risk investments. Too often we hear of schemes where people lost their shirts—e.g., Enron.

Still, this is not a blanket warning. It applies to the average person who has about a year’s income in hand (for emergency use only, please God), so that anything above that can be invested. Being blessed with a large (or even a small) fortune, however, gives a person the right to “take a chance” and gamble with an attractive investment, even if it’s a long shot. It’s his money, it might do very well, so why not? This type of person is not putting himself at high risk because he still has wealth to fall back on.

So, investing in a business can be either a smart move or a gamble, depending on your resources, financial acumen and the opportunities that arise. To this Rebbe Nachman adds another thought: “Only a man who is trapped by his possessions borrows money to do business. A free man does not borrow. He engages in honest business using only his own money. It is written (Deuteronomy 6:5), ‘You shall love God with all your might (i.e., possessions).’ This is fulfilled by the man who does not borrow money for his business” (Rabbi Nachman’s Wisdom #289).

Rebbe Nachman cautioned his followers strongly to safeguard their money. He was very particular that his disciples take good care of their possessions. He was opposed to carelessness and would ridicule the hapless individual. He said, “A person takes time from Torah and prayer and struggles to earn some money to support his family. After he earns the money, he becomes a hapless schlemiel and does not take care of it at all?! Honest Jewish money must be guarded like the eyes in your head” (Rabbi Nachman’s Wisdom #281).

So there we have it. One must take care of his money. This makes it quite clear that any form of gambling is not condoned. A person may—and is even encouraged—to make a sound investment. If it doesn’t work out, then obviously it was God’s will. If you can afford to take a chance on a seemingly good venture, go right ahead. But if there are too many loose ends, then beware.

May HaShem help us so that all our intentions are focused on building a Sanctuary. May we always make the right choices. And may we all have the means to invest in profitable ventures. Amen.

Have a good week.