Losing Money

By Dick McCullough

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Green Bay Packers had not lost a game all year. San Francisco 49ers had not won. Game was in progress. Packers were leading. Dad turns to me and says, "Want bet on the game?"

"Take whoever you want."

"Packers? What odds?" I stare at him through squinty eyes, trying to figure his angle.

"Two to one."

I'm suspicious. He's not to be trusted.

"No."

"OK. Even up."

This is too good to refuse. Easy money.

"Deal. 25 cents."

Of course, the 49ers battle back. It's getting close. I'm starting to worry, starting to whine.

So Dad says, "Want to switch teams? " He looks at me and smiles, the picture of serenity.

This increases my anguish. He's willing for me to change the bet at any time. He is seemingly confident of winning no matter which way I bet.

"No."

49ers drive the field. With just seconds remaining they kick a field goal to win the game.

I am distraught. I am also 25 cents poorer.

Back then, 25 cents was two comic books and five sour apple bubble gum balls. An afternoon of ecstasy. My loss was real. I never seriously gambled again.

A few years ago, I had a friend who was a wealthy car dealer. He had a huge house in the hills, several fancy cars. He was rich. At that particular time, the car business was suffering. He told me that he was losing $80,000 a month. Then he went into the garage, pulled out several Elk steaks from a recent hunting trip and handed them to me.

I was stunned. $80,000.

Each month.

Even if I tried, I couldn't lose that much money. I wasn't capable. I didn't make that much in an entire year.

That's when it hit me. How much money you are capable of losing is as much an indication of how rich you are as how much money you can make.

It takes money to lose money.

When my dad was first starting his family, he didn't have much money. None, actually. He worked hard and long, saved every penny. He was a car mechanic, worked in a garage. He would buy old clunkers, fix them up on his own time and sell them. Made a little extra that way.

His brother had been paralyzed in a car accident a few years earlier.

I own and run a small consulting business. Last year was disastrous. Through a combination of unfortunate events, including simple stupidity on my part, the company lost $300,000. For some people around here, that's not much money. For a business as small as mine, though, it's quite a bit. We might have to refinance our house. Maybe move to a cheaper neighborhood. Make some adjustments.

But our house has a ridiculous amount of equity in it. I could retire just on the equity in that stupid building alone. If you are rich enough to lose a lot of money, you've got options others don't have.

Whatever happens, we won't go hungry. We won't be homeless. Our kids won't be forced to skip college. I can still buy comic books and sour apple bubble gum. We will still have Christmas dinner and presents under the tree.

I don't need to worry.

I lost $300,000. I must be rich.

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