His father was assistant cantor at the Church of Holmen and owner of the punch bar at the Royal Theatre on Kongens Nytorv.

He was initially not sent to school but had to assist in his father's punch bar, but later attended Det von Westenske Institut in Nørregade.

He had aspirations to become a merchant but was unable to find an apprenticeship and therefore trained as a surveyor before he was employed as a clerk in the head office at Classen's Frederiksværk.

He began his career in trade by receiving small commissions for bringing goods along on his journeys between Frederiksværk and Copenhagen.

When Puggaard acted as secretary for Eilert Tscherning's on his journey to Sweden in 1812, he used the opportunity to buy up English products that were unavailable in Denmark at the time.

Puggaard specialized in exporting grain from the countries around the Baltic Sea to England but also traded in timber, herring and wine.

Their homes in Copenhagen and Ordrup were frequented by many of the leading artists of the time, Bertel Thorvaldsen, C. W. Eckersberg, Wilhelm Marstrand and Thorvald Bindesbøll.

When their daughter Maria married Orla Lehmann their home also became a meeting place for the inner circle of the National Liberal movement.