I'm not rich enough that my life wouldn't be changed by lots of money, but I know startups pretty well. I invest around $10K once a year in a startup, usually

I'm not rich enough that my life wouldn't be changed by lots of money, but I know startups pretty well. I invest around $10K once a year in a startup, usually with a friend who I believe strongly in. One of them so far was a disaster, and oddly enough he was the highest profile of these investments. One was quite lucrative. Another is looking to be a great return, having recently raised at more than 10x. I don't think investing 5% of your income and/or capital in startups is a bad idea if you have reason to believe someone will be successful. The key is to consider the money lost once you invest it. Don't expect anything back.