"I didn't have any idea what I was spending:" Nearly Burning Through a $13M Exit

Cash Mistakes

Ryan's biggest financial mistake was overinvesting in cash and underinvesting in the market. He admits that despite his knowledge of market dynamics, he kept most of his wealth in cash, fearing market downturns while planning to start a new company 1. This decision was influenced by his father's approach to money, who also kept large amounts of cash but lacked other investments 2.

The market's gone up a lot. I'd be worth twice as much now if I had just been in the market.

--- Ryan Begelman

Ryan's realization came too late, as he missed out on significant market gains and opportunities.

   

Spending Awareness

Ryan also struggled with a lack of awareness about his spending, which led to financial mismanagement. He tracked his net worth but had no idea about his monthly expenses, leading to unchecked spending on luxuries like Burning Man and property insurance 3. This lack of discipline resulted in peak spending of over $800,000 a year, which he later realized was unsustainable 4.

I didn't have any idea what I was spending. The only thing I tracked was my net worth.

--- Ryan Begelman

Ryan's journey towards financial discipline involved cutting down on unnecessary expenses and re-evaluating his lifestyle choices.

   

Spending Discipline

Ryan's spending habits took a significant turn as he began to respect money more. He cut his monthly spending from $67,000 to half, finding joy in the discipline of managing his finances better 5. He now views money as an entity that deserves respect, akin to personal energy.

I didn't really respect money. It's like I was just wasting all my prior work and luck.

--- Ryan Begelman

This shift in perspective allowed him to make more thoughtful financial decisions, ultimately leading to a more sustainable lifestyle.