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While I’m not in the position of my good friend Rand, who’s gone on the record saying that his life savings is $25,000, I was not previously wealthy I continue
by dotBen 15y ago
While I’m not in the position of my good friend Rand, who’s gone on the record saying that his life savings is $25,000, I was not previously wealthy
I continue to be of mixed minds as to whether having personal wealth (or not) leads to a greater or lesser level of risk tolerance - and itchiness to exit.
Sure it's easy for those with a high net-wealth to take bigger risks but we see all the time those with nothing (or even less with nothing, ie college debt) take just a big risks because they have nothing to lose.
I wonder if willingness to take risk is essentially a bi-polar bell graph, which leaves something like $25k in the bank in that sticky middle... not enough money to risk it all but too still much to be lost.
- daleharvey 15y agoI was really confused by the implication of this statement is someone who has $25k in life savings "poor" or "wealthy"? I agree with you that its a sticky middle, but the post seemed to imply one or the other.
- rewind 15y agoI think in Rand's case, it means "poor". He has tremendous value built up in his company, but nothing personally to show for it. He's still an unforseen string of bad luck or hospital stay from being completely broke (or worse). That's why some people mention it's okay for him to take some money off the table if he raises additional funding.