Don’t gamble more than you can afford to lose

Lot’s of people will tell you this. The problem is that most people don’t know what they can afford to lose.

First, if any of these are true, you probably shouldn’t be gambling at all:

• You have any deprectiating consumer debt (e.g., credit card, auto, medical, etc.)
• You don’t have 3-6 months of emergency savings
• Your retirement savings and investments aren’t on track

If you must gamble, assume you’ll lose. Betting markets, casinos, and other bookmakers only exist because people lose more than they win.

And assuming you’ll lose, only lose an amount that could ruin your morning, but never your day.