On the following day, Abraham was obedient and took and circumcised every male, in his household. This was done literally. However, if we take a step back and look at this short entry, we can see a model of how Israel and all believers are in the covenant. Take a look at who is included. Everyone, family and foreigner, Jew and Gentile.
We also see that when God commands, we are to be obedient, immediately, not when we feel like it.
For future knowledge, note that Ishmael's name means, "God Listens" or "God Hears". I can't help but think that this is a reminder that even though Abraham and Sarah disobeyed God, concerning Hagar, Ishmael's mother, God still listens to true believers and fulfills his promises.
God Listens. The Father of Many will save everyone one born in his household and those who are bought with his money. The word for money is keceph, which means silver. Is this a hint towards the 30 pieces of silver, that Y'shua was bought with, in the betrayal transaction between Judas Iscariot and the High Priest Caiaphas.
Finally, Abraham was 99 and Ishmael was 13, which confirms that Abraham was 86 years old, when Ishmael was born, just as Genesis 16 says. Also, many Jews and historians will tell you that the tradition of Bar and Bat Mitzvah came from the middle ages. It was, in fact, here that the tradition began. This reflects the fact that in 9AD, we are told that in the Talmud, that the priest walked through the streets of Jerusalem, lamenting the lost of the power of the death penalty, taken away by the Roman Empire. This is the final sign of the Messiah coming. They cried out, "Woe unto us, for the scepter has departed from Judah and the Messiah has not come."
Little did they know that, in the town of Nazareth, a little 13 year old boy was being Bar Mizvah and becoming a son of the covenant. That little boy was Y'shua Ben Joseph, Jesus of Nazareth.