Spending Requires Practice

Shaan Puri shares his perspective on spending money as a learned skill, drawing from his personal experience with his father and how he implemented this learning at his company. He believes that many people know how to make money but struggle with spending it effectively.

• Money Spending is a Skill

  • Like other skills, it needs to be practiced
  • Many people are good at making money but poor at spending it
  • Even wealthy people can struggle with spending decisions

• Personal Experience with Father

  • Father came to country with $9.91, made millions
  • Never learned how to spend money comfortably
  • Would talk himself out of small purchases (like $3 coffee)
  • Would walk long distances for free items despite having means

• Solution: "Treat Yourself Budget"

  • Implemented bonus program at his company (Bebo)
  • Started at $1,000/month base
  • Bonus pool grew with company growth
  • Rules:
    • Must spend on something interesting
    • Can't use for regular expenses (rent, groceries, debt)
    • Must share story of purchase with team
  • Purpose: Practice intentional spending in meaningful ways

• Example of Good Spending

  • Personal story of hiring stylist when becoming CEO
  • Used Craigslist to find personal stylist
  • Had stylist remove old clothes
  • Purchased new wardrobe to match new role
  • Marked new chapter in life through intentional spending

The core message is that spending money effectively is a skill that needs to be developed through practice and intention, just like any other capability.