It’s Easy to Spend but Hard to Spend Well

Moneywise

Hampton

Business, Entrepreneurship, Investing

4.8 • 674 Ratings

🗓️ 9 July 2024

⏱️ 31 minutes

🔗️ Recording | iTunes | RSS

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Summary

Getting rich at any age is pretty cool. But being rich in your late teens and early 20s? Of course, that’s awesome, but it can be difficult to navigate wealth when you’re basically still a kid. That was the case for my buddy, Andrew Wilkinson. He invested in and sold a few tech companies early on and thought he was set for life. He bought whatever he wanted. But he had a serious wake-up call in 2008 when the stock market crashed and he almost lost everything. In this episode, Andrew shares a number of his wins and losses; from almost going bankrupt to crossing the nine-figure threshold. Being able to buy whatever you want, go wherever you want and do whatever you want is great. But so is spending your money on things that can make a difference for others. Andrew also tells us how wealth can have its downsides for families and friendships. This is Moneywise, a podcast where host Sam Parr is joined by high-net-worth guests to explore exclusive insights into personal finance and lifestyle tailored for other high-net-worth people, or those on their way. They'll get radically transparent about the numbers, revealing things like their burn rates, portfolios, and spending habits. Who is Sam Parr? Sam is a serial entrepreneur and the co-founder of The Hustle, which he sold to HubSpot in 2021. He's also the co-host of one of the world's top podcasts for entrepreneurs, My First Million. Known for his insightful business acumen and candid communication style, Sam Parr continues to be a prominent figure in the world of media and entrepreneurship. Sam's newest and biggest venture yet is Hampton, which he co-founded in 2022. This podcast was made for the Hampton community, a private, highly-vetted, peer membership community for founders and CEOs of fast-growing, tech-enabled startups. Chapters: Andrew’s Wealth Journey (03:28) First Taste of Liquidity (06:44) The 2008 Wake-Up Call (09:28) Crossing 9 Figures and Luxury Spending (14:38) The Downsides of Wealth (19:23) The Pros and Cons of Donating and Charity (23:34) Final Reflections (27:51) This podcast was produced in partnership with Lower Street and distributed by Morning Brew.

Transcript

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0:00.0	I remember going to the ATM and printing out the slip and seeing this huge number with a bunch of zeros on it and being like, oh my God, I'm done.
0:14.8	I can retire. I can do anything I want. I never have to worry about money again. And obviously, that's not what happened. That's my friend Andrew Wilkinson.
0:22.6	He became an entrepreneur when he was really young,
0:24.6	and before he was even out of his teens, he was making six figures.
0:28.6	It was just whatever was left over at the end of the month went to me.
0:31.6	And over time, that became $5,000, then $15,000, then $30,000, then $50,000, and the number just kept going up.
0:40.6	And it got to a point where, you know, I just couldn't spend it.
0:43.8	And I had to figure out what to do with it.
0:45.6	Andrew never planned to be super wealthy, and he didn't grow up that way either.
0:49.1	So throughout his 20s, he learned the hard way which things were worth spending time and money on and which things weren't.
0:55.0	I just found that my life turned into a series of questions from my assistant.
1:00.0	He also made a ton of major mistakes along the way that nearly brought him back to square one.
1:05.0	The day after the stock market crashed, they were like, we're totally unhappy.
1:09.0	We want all of our money back.
1:10.0	And the refund was going to basically empty my bank account down to about $500.
1:14.8	Andrew tells us about all of the crazy ways he spent his money,
1:18.0	from luxury items like cars and houses to investments and attempts at goodwill.
1:22.7	He'll tell us what he regrets, what he'd do differently,
1:24.7	and how he lives his life now after all the lessons he's learned through founding MetaLab and creating Tiny.
1:35.0	I'm Sam Parr, and this is Money Wise.
1:39.3	Just scroll through Instagram for 30 seconds and you're going to see a ton of stuff out there
1:42.6	and how to get rich, but none that really teach you how to handle life after you've already made a little bit of money.
	...

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