I chose to be broke for a year
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode features entrepreneur Shaan Puri, who sold his company to Amazon and Twitch for millions and co-hosts one of the most successful business podcasts in the world. Shaan gets interviewed by his former intern Walter about his unconventional path to success. The conversation covers his decision to quit a $120K job at 23 to become "strategically broke" while working on a sushi restaurant startup, his philosophy on reversing bad decisions quickly, and the counter-intuitive choices that ultimately led to his success. (01:58)
- Main themes: The discussion centers on strategic decision-making, the power of proximity and networks, choosing what to work on over working hard, and building a life around curiosity and authentic interests rather than external expectations.
Speakers
Shaan Puri
Shaan is an entrepreneur who sold his company Bevo to Amazon and Twitch for millions after six years of building it. He now co-hosts "My First Million," one of the most successful business podcasts with millions of listeners. Before his entrepreneurial success, he made the bold decision to quit a $120K job in his twenties to pursue a sushi restaurant startup with friends, living on $8,000 per year during what he called his "strategically broke" phase.
Walter
Walter is Shaan's former intern who worked for him when he was 18-20 years old while in college. He has since created his own podcast called "The Biography Podcast" where he interviews successful individuals about their life philosophies and paths to success. Walter represents the ambitious young professional seeking to learn from those who have already achieved success.
Key Takeaways
Make Great Reversals, Not Perfect Decisions
Shaan emphasizes that he doesn't make great initial decisions, but he excels at quickly reversing bad ones. (03:18) When he realized his $120K job was making him miserable after just a month and a half, he immediately quit to pursue his sushi restaurant idea. The key insight is that once you realize you've made the wrong choice, lingering in that decision only wastes more time and energy. Most people get trapped because they're afraid of looking stupid or facing uncertainty, but the real risk is staying stuck in something you know isn't right. This principle applies to relationships, jobs, projects, and life decisions - the ability to cut losses quickly and pivot is more valuable than trying to make perfect initial choices.
Proximity is Power - Get Near What You Want
One of the most transformative principles Shaan learned from Tony Robbins is that proximity is power. (13:40) When he wanted to do startups while living in Australia, he kept meeting impressive founders who had all moved to San Francisco. Rather than trying to build a startup remotely, he made the strategic decision to move to where the serious people were. This principle works like biological osmosis - you naturally become like the people you spend the most time with. If you hang out with people obsessed with fitness, you'll start working out. If you surround yourself with successful entrepreneurs, you'll develop entrepreneurial skills. The lesson is to actively choose your environment and peer group based on who you want to become, not just where you currently are.
Most People Aren't Serious - Be Part of the Few Who Are
Shaan shares a powerful story from a Tony Robbins event where 10,000 people played Simon Says, but only 50 actually believed they could win. (16:57) The five winners weren't really competing against 10,000 people - they were competing against 50, giving them a 1-in-10 chance rather than 1-in-10,000. This principle applies everywhere in life. Most people aren't truly serious about their goals. Mr. Beast tells aspiring YouTubers to make 100 videos, improving one thing each time, but nobody ever comes back having completed the challenge. The opportunity exists because most people won't do the simple, unglamorous work required. If you decide to be serious and actually do what others only talk about, you're already in the small percentage of people who might succeed.
Project Selection Matters More Than Hard Work
Shaan argues that hard work is overrated - it's maybe the fourth or fifth most important factor for success. (43:15) The most crucial factor is project selection - what you choose to work on matters far more than how hard you work on it. Working incredibly hard in the restaurant industry still limits your outcomes compared to working moderately hard in tech. Similarly, who you work with, timing, and luck all rank higher than pure effort. The key insight is that skills transfer between projects, but the project itself might fail. When his sushi restaurant failed, Shaan still retained the video editing, design, and business skills he'd developed. Smart project selection means choosing work where the process itself is rewarding, not just betting on future payoffs.
Listen to Your Inner Voice Over External Expectations
Shaan emphasizes the importance of making your own opinion of yourself matter more than anyone else's opinion of you. (28:22) He asks a crucial question: "Who's the most important voice in my life?" Most people unconsciously let parents, teachers, bosses, or society direct their decisions. But there's a little voice in your head that's actually directing your life's movie - deciding where to stand, what to say, what to do next. The goal is to strengthen that internal director and develop your own taste for what you admire and what you want to avoid. This requires noticing moments where external voices say one thing but your internal voice says another, then choosing to follow your inner guidance despite the discomfort.
Statistics & Facts
- Shaan quit a $120,000 per year job after just one and a half months to pursue a sushi restaurant startup, living on $8,000 per year split between three people. (02:20)
- At the Tony Robbins event with 10,000 people playing Simon Says, only about 50 people actually raised their hands when asked if they believed they could win, meaning the five winners were really only competing against 50 people, not 10,000. (17:08)
- Mr. Beast tells aspiring YouTubers to make 100 videos, improving one thing each time, but according to him, nobody has ever come back to him after completing this challenge. (21:01)
