Playing With House Money

via American Thinker

Everyone’s familiar with the term “house money.” When you’re playing with house money, you’re gambling or spending money that’s not actually yours, so the perceived risk is lower than it would be if it were your money. Therefore, the care exercised in the use of those “house” funds is correspondingly low, sometimes to the point of being nonexistent.

Here’s a simple example: Let’s say you’ve just won the lottery. A $20 Quick Pick paid off with a $5000 winner. You’re understandably quite pleased and, feeling appropriately flush with your newfound wealth, you take a stroll through the high-priced mall downtown, with their fancy shops. Here, all manner of high-end expensive merchandise beckons — fragrances, designer handbags and shoes, 50-year-old bottles of Scotch, and world-famous menswear. You’d probably never even contemplate buying this sort of merchandise with your own money, but it’s not “your” money, is it? It’s house money. $4980 of it, to be exact. So you treat yourself to suits, perfume, jewelry, and a bottle of rare spirits. Nice haul. And all for “free.”

Read the full article here

Advertisements

About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
This entry was posted in Uncategorized. Bookmark the permalink.