Rabbi Shneur Zalman of Liadi, the founder of Chabad Chasidism, expected all members of his household to be sparing when it came to the way they spent money. "Since my household is supported by the public, and our Sages teach that the Torah looks askance at wasting Jewish money, it is only proper that we live frugally," he would explain.
One time, when one of his grandchildren came to him wearing an expensive belt, Rabbi Shneur Zalman questioned him, "Are you such a rich man that you should be wearing such an expensive belt?"
The grandson was silent so Rabbi Shneur Zalman continued interrogating him concerning money matters. "Tell me, how much money did you receive as a dowry?
"Two thousand rubles," answered the grandson.
"What are your plans for the money?" questioned Rabbi Shneur Zalman.
"I am planning on giving it to a successful merchant. In this way I will be able to earn something on it."
"Perhaps," countered Rabbi Shneur Zalman, "he will neither return you your capital nor any interest?"
"That is impossible," argued the grandson. "This merchant is very wealthy and reliable."
"What difference does it make if he is wealthy now?" argued Rabbi Shneur Zalman. "The wheel of fortune turns. He could become poor."
"What do you suggest I do with my money?" asked the grandson.
"My advice to you is to put the entire sum into this box," said Rabbi Shneur Zalman, pointing to a charity box.
The grandson was certain that the Rebbe was joking, though he didn't think his grandfather was one to joke about such things.
"I really mean what I said. I suggest that you give the entire sum to charity. In this way, the 'capital' and the 'interest' will remain intact. I am afraid that if you invest with some wealthy merchant, you might lose both."
The grandson heard what the Rebbe said and nevertheless, decided to invest his money with a merchant who was not only trustworthy and wealthy, but a scholar, too. Several months later, however, a fire destroyed everything the merchant owned and he was reduced to poverty.
Later, when the Rebbe asked his grandson how his investment had fared, the young man related the catastrophe which had befallen the merchant.
"Why didn't you listen to my advice and put the money in this charity box?" admonished the Rebbe. "Had you done that, then the capital and the interest would have remained intact. Why do my chasidim not trust the advice of their Rebbe? Let me tell you a story about the simple faith of the people of Volhynia."
"Once, in the midst of the bitter cold of winter, I was on my way home from visiting my Rebbe, the Maggid of Mezritch. I was nearly frostbitten by the time we reached a Jewish inn.
" 'How long have you been living here?' I asked the elderly innkeeper.
" 'For nearly fifty years,' he answered me.
" 'And are there other Jews nearby? Do you have a minyan to pray with, people with whom to celebrate the holidays?'
" 'Only on the High Holidays do I go to a nearby village to pray together with a congregation.'
" 'Why don't you live in that village so that you can be together with other Jews?' I asked.
" 'How would I make a living?' he questioned me.
" 'If G-d can find a livelihood for a hundred families, don't you think He can do the same for one more?" I asked him.
"I also mentioned to him that I am a disciple of the Maggid of Mezritch.
"He left the room immediately. Not more than one half hour later, I saw a few wagons parked in front of the inn, loaded with all kinds of household items and furniture. I saw the innkeeper near the wagons and asked him, `What is going on here?'
" 'I am moving to the other town, as you told me,' he answered simply.
"You see what strong faith that old man had in my Rebbe?" Rabbi Shneur Zalman challenged his grandson. "I only had to mention that I was a disciple of the Maggid of Mezritch and he dropped everything immediately, including his home and livelihood for fifty years. He was not even a chasid. And you heard from me twice that you should place the money in the charity box and yet you did not listen.
