I’ve posted Entry #58 to my weekly Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s called Happy Days Are Almost Here Again!
Juicy Excerpt: Say that you know a fellow who earns $60,000 a year, spending $50,000 and saving $10,000. His financial circumstances are essentially fine.
Now your friend develops a gambling habit. For three years running, he runs up losses of $50,000 per years playing blackjack in Atlantic City. He continues to perform well at his job. And he continues to spend less than his annual income on food and transportation and shelter and all that sort of thing. But at the end of the three years, he is $150,000 in debt. Only one thing has changed in this fellow’s financial life — in the old days he was not incurring $50,000 in debt each year and now he is. But now this fellow’s financial situation is not fine but an outright disaster.