Scott breaks down the best and worst purchases he’s ever made, and why he prefers spending money on experiences rather than things. He also shares how his childhood still impacts the way he thinks about spending. Scott and Ed then discuss how to navigate spending in common situations such as dinners with friends, weddings, and the holidays. Ed asks for advice about how to prepare for the cost of having children. And Scott also explains why it's important to make sure your spending lags behind your income. Listen to more from Prof G Markets here. Learn more about your ad choices. Visit podcastchoices.com/adchoices
What are the best and worst purchases Scott has made?
I love that, too.
Yeah, no, we're not big. We're not big gifters.
Okay.
Because I will say, by the way, you get presents for us at the end of the holidays. I don't know if you know what you're getting us, but we have received Christmas gifts from you. And I would assume that that's sort of part of, you know, you build that into the budget. Okay. Over the holidays, I need to put aside this amount of money to get my employees some gifts and to get these people gifts.
Like, I feel like it's an important part of the income statement, if you will.
But it's strategic and it's selfish. So employee gifts. And it's the following. First off, I don't buy anything. I don't know what's going to be in that fucking bag. MJ, who has much better taste than me. She does a great job. She'll say, I'm going to spend $500 or $1,000 on employee gifts per person. I'm like, fine.
And she'll figure out the latest cool thing and she'll do a great job and merchandise it. And I just give her my credit card number. And the reason it's strategic is that if I spend $1,000 on a gift or gifts for employees, it's worth more than $1,000. Right.
If I gave them $1,000 in compensation, one, they'd have to pay 30%, 34% taxes on it, whereas if I give you $1,000 with whatever, AirPods and a scarf or something, it's pre-tax income, and also it's more meaningful. And the psychological benefit is greater than if I'd just given you $1,000 cash. My first business partner would always be like, he was totally gruff.
He'd be like, just give them cash. And I'm like, no, they like gifts. The kids like gifts. You know, for me, the holidays, I don't, I can't stand the holidays. They were not an enjoyable time for me growing up. So I literally loathe them. it's so personal though. You might find, I mean, so for example, I think gifts are more important for women, cocaine, jewelry, cocaine and jewelry.
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