I've only been to Vegas two times in my life. I've never lost more than twenty dollars in Vegas. I've also never risked more than twenty dollars.
I've never been one to take risks where the other guy is guaranteed to win most of the time.
On the other hand, I've lost hundreds of thousands of dollars taking risks in business pursuits.
I have friends who have never taken a risk in business, but have gambled several thousand dollars away in Vegas, several times. Yet, they seem to be a lot happier about the money they've lost in Vegas than I've been about the money I've lost in business. I've asked myself why. I think I have an answer.
My friends who love Vegas stay in fine hotels and love to enjoy the entertainment that Vegas can offer. They also know exactly how much money they're willing to lose.
In my past business pursuits, I never factored in the amount of money I was willing to lose. I figured that I would win over the odds, and unlike Vegas, the percentages weren't fixed.
You may not be in business, but if you don't know how much you're willing to lose in your personal finances, you face the inevitable misery from the stress and burden that financial challenges offer.
In the first principle of SimpleEconomicsTM you must understand "where you are" financially. This can also mean discovering where you are not. You have to know how much you're willing to lose before you will make any positive changes to your personal finances.
Oh, about the title of this blog, "The Wayward Ho." This was the name of the motel (with an "M") I stayed in on my first visit to Vegas, and since I'm referencing Vegas, it was the first thing I thought about. Let's just say it wasn't a four star accommodation.
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