I see the story as the rich man was to give up his possessions b/c he loved them more than God. Jesus did not want him to be poor, but to put his material possessions in the right perspective. Jesus says he came to give us life, and life abundantly. Jesus wants us to have nice things. Therefore, the story can be taken quite literally b/c Jesus was explaining to the rich man his own ways that will keep him from entering the Kingdom of God. It is a true story that can help us all.
Jesus even asked Peter, do you love me more than these? Go tend to my sheep. IOW, we are to love Jesus more than anything.