The first stanza tells the listener or reader not to "throw the bums a dime" because it is easy to loan too many peoples money and never be repaid, leaving the possibility of losing everything. The lines of the first stanza address someone as "you", suggesting they are speaking directly to the subject of the stanza. The lyrics of "Like a Rolling Stone," when close read as in the past you (the mystery individual the song is addressing) were rich and flashed your money around, spending and lending your money to people who never had any intent of paying you back. Dylan uses a similar idea in "A Man of Constant Sorrow," in lines 15 and 16, "If I had known how bad you'd treat me honey/ I never would have come." This line implies that he came a long way to see someone and help them, and was never thanked for his efforts, in the same way the subject of this stanza was never repaid for their charity. Line three goes on that people told you that if you weren't prudent with your money you'd lose everything, and you didn't take them seriously. You used to laugh at those who had less than you, but now you don't laugh at all. You don't act like a big shot anymore, because you're working hard just to be able to eat, and don't have the money to flash around.
The first stanza is teeming with literary devices. In the second line, there is an internal rhyme with the words "dime" and "prime", along with an example of metonymy with the word "bums". In line three there is an example of both internal rhyme