Allen Iverson earned $200M+ while playing in the NBA. Multiple times throughout his life he struggled to pay for basic expenses. Believe it or not… The Answer is not indulgence.

A lot of the successful people I’ve met who came from humble beginnings keep their sense of scrappiness. They avoid overspending. They live a good, healthy, sustainable life. Regardless of how successful you are, you should always live a life of modesty.

I also like what Morgan Housel has to say about this: “If it’s not sustainable, I’m not interested.”

Spending a lot of money on things you don’t need isn’t just unsustainable, it’s unhealthy. If you’re trying to fill a void through indulgence, it won’t work. If it did work, people still indulging today would’ve stopped a long time ago.

“Do not save what is left after spending, but spend what is left after saving.” — Warren Buffett

The same philosophy applies with startups. Regardless of how much you raise, you shouldn't overhire just because you can. You should operate like you're running on a shoestring budget.

I like how the Zapier CEO thinks about hiring. He only hires when it hurts. You should never just overspend or blow money for no reason. Be intentional with your capital.

“He who buys what he does not need steals from himself.” — Swedish Proverb

The general consensus across the greatest entrepreneurs is to be weary of over raising, hiring, and spending.

Maintaining scrappiness and constraints around resources influence ongoing creativity. Any hire or expense should have an ROI tied to it when you are forecasting. 

If you’re a scrappy founder, reach out today. I’d love to chat.