It’s Easy to Spend but Hard to Spend Well

70 snips

Jul 9, 2024

In this conversation, Andrew Wilkinson, an entrepreneur who achieved early wealth through tech ventures, shares his rollercoaster journey with finances. He reflects on the challenges of managing wealth as a young adult, revealing painful lessons learned after the 2008 crash. Andrew discusses the burdens of excess and how true happiness often lies beyond materialism. He also dives into the complexities of philanthropy and the nuanced relationships that wealth can create within families, emphasizing that financial freedom requires thoughtful spending.

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ANECDOTE

Early Success and Shareholder Happiness

Andrew Wilkinson experienced early entrepreneurial success, making six figures as a teen.
He initially paid himself well, prioritizing shareholder happiness from the start.

INSIGHT

Prioritizing Personal Pay

Andrew Wilkinson emphasizes the importance of paying yourself well as a business owner.
He believes prioritizing personal financial well-being alongside customer and employee satisfaction is crucial.

ANECDOTE

Diversification and Losses

Wilkinson diversified his investments into SaaS companies and copied Warren Buffett's strategy of acquiring and growing small tech companies.
Despite early success, he admits to pouring $10 million into businesses that ultimately failed.

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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.