The _vast_ majority of interesting decisions are uncertain and have multidimensional risks and payouts that defy such calculation. Even something as trivial as “how much to pay for a residence” has massive variance in the monetary outcome _and_ unknown impact on quality of life, ease of social experiences, what work options there are, etc.
Sure, if you see a 3:1 chance to get paid even money, you should bet half your resources on it (that’s not your current net worth, actually—it’s the discounted value of your future cash flows, independent of this bet. For young folks, it’s likely a large multiple of your current net worth). But you will _never_ see such an opportunity.
The _vast_ majority of interesting decisions are uncertain and have multidimensional risks and payouts that defy such calculation. Even something as trivial as “how much to pay for a residence” has massive variance in the monetary outcome _and_ unknown impact on quality of life, ease of social experiences, what work options there are, etc.
Sure, if you see a 3:1 chance to get paid even money, you should bet half your resources on it (that’s not your current net worth, actually—it’s the discounted value of your future cash flows, independent of this bet. For young folks, it’s likely a large multiple of your current net worth). But you will _never_ see such an opportunity.