Risk of Ruin

"You can be risk loving and yet completely averse to ruin." - Nassim Taleb

To get around this, I think of my own money as barbelled. I take risks with one portion and am terrified with the other.

Risk brings reward, but risk of ruin should be avoided. Don't play with money you can't lose.

To get around this, I think of my own money as barbelled. I take risks with one portion and am terrified with the other. Don't bet in aggressive strategies what you can't afford to lose.

Example: paying off a mortgage. Less optimal gains, but it reduces your risk of ruin.