What does Proverbs 15:16 mean?

Solomon compares two situations: living without material wealth, but knowing and honoring God, versus being prosperous and suffering the consequences of a godless life. As is typical of the Old Testament, the term "fear" is used here to mean a form of holy reverence and obedience. It does not extend to terror or panic, but neither does it mean something entirely carefree. Honoring God begins with acknowledging His role as our Creator and Master (Proverbs 1:7; 8:13; 14:27). Regardless of earthly circumstances, a sincere relationship with God improves our perspective (Proverbs 15:13–14).

In contrast, wealth cannot guarantee happiness or peace. In fact, chasing money while ignoring God tends to produce anxiety and insecurity (Proverbs 10:9; 11:4). The Hebrew word mēhu'māh can be translated as "trouble," "turmoil," "confusion," or even "panic." Godless living, itself, brings risks and consequences (Proverbs 13:15). When success comes from faithful living, it is far more secure (Proverbs 10:29).

Knowing and honoring God enables the believer to endure hardship and pressure (Philippians 4:13), with a calmness in the soul, and to know God is working all things for the believer's good (Romans 8:28–30). God allows trials to enter the believer's life to prove the genuineness of his faith (1 Peter 1:6–7) and to help to conform him to the image of Christ (Romans 8:29). Paul tells Timothy that "godliness with contentment is great gain" (1 Timothy 6:6). Occupying one's life with the pursuit of wealth plunges people "into ruin and destruction" (1 Timothy 6:9–10).