The article's focus on viewing payments as a fraction of your net worth is related to the Kelly criterion [1], which suggests making only investments that incre

The article's focus on viewing payments as a fraction of your net worth is related to the Kelly criterion [1], which suggests making only investments that increase the expected logarithm of your net worth. For example, say you have the chance to bet on a single flip of a biased coin that comes up heads 51% of the time. If the coin comes up heads, you win $10,000; otherwise, you lose $10,000. According to the Kelly criterion, this bet only starts to make sense once your net worth is at least $250,000 [2]. [1] https://en.wikipedia.org/wiki/Kelly_criterion https://en.wikipedia.org/wiki/Kelly_criterion [2] https://www.wolframalpha.com/input/?i=solve+0.51*ln%5Bx+%2B+1e4%5D+%2B+0.49*ln%5Bx-1e4%5D+%3E+ln+x https://www.wolframalpha.com/input/?i=solve+0.51*ln%5Bx+%2B+...