The $100 Feeling: Discover What Makes You Financially Happy

Hi Reader,

Welcome to The Money Series, and if you are new here, thank you for signing up. Personal Finance can feel ambiguous and overwhelming, but I am here to help simplify the journey.

If I handed you a $100 note today, and I told you to spend it on anything you want - no payback required, what would you do?

What are the first 1–3 things that come to mind?

Relax!😂 I’m not writing about saving, investing, or trimming your expenses today😉

Today, we’re diving into something a little more personal — and a lot more fun.

You probably know someone who will happily spend $100 on a good meal but hesitates to buy a $25 shirt. Or someone who doesn’t blink at getting a luxury bag for a significant amount of money, but will become very frugal when it comes to shopping for groceries?

It’s not random, it’s psychology.

Each of us has that thing (or a few things) we love spending on. Things that bring us disproportionate joy. Personal Finance author Ramit Sethi calls these Money Dials - the area(s) of life you are willing to spend extravagantly on, that feels deeply satisfying. It could be vacation trips, eating out, wrist watches, personal development, shopping, or fitness. Ramit calls them Money Dials because they can be turned up or down just like a volume dial.

What’s Your Money Dial?

To figure this out, ask yourself:

• What do I love spending money on?

• What purchases make me feel energized or fulfilled?

• What do I always want more of?

According Ramit’s research, there are 10 most common money dials (with real-life examples):

This list is not exhaustive and may not include your specific money priorities, but it’s a good starting point in my opinion. The key is to be intentional, specific, and detailed about your money dials.

Turning Up the Dial

The fun part is that you don’t have to spend less across the board to be financially responsible. You just have to spend more on what you love and less on what you don’t.

If travel is your jam, maybe you cut back on shopping and instead book a trip you’ve been dreaming about. If convenience saves your sanity, maybe you hire a cleaner and skip the DIY.

Turning up the dial doesn’t just mean increasing the frequency or spending (don’t just think linear increase). Sometimes, it means upgrading the experience, especially in terms of quality.

If you want to increase your spending and your #1 money dial is eating out, for instance, it does not necessarily mean eating out more frequently. It can mean eating at a high-end restaurant instead of fast-food, and it can also mean bringing your loved ones to your favourite restaurant.

If traveling is what lights up your soul, turning it up might mean traveling more frequently (quantity) or flying first class and staying in 5-star hotels when you travel (quality). If you prefer to give to charity, it may imply that you will send more kids to school, or include food allowance for the intended number of kids.

If shopping is your thing, maybe more shirts and shoes, or switching from Zara to Louis Vuitton? If you have a knack for self-improvement, maybe buy more books or take more high-end courses, or pay for an executive MBA.

You can also think of this in terms of the things you won’t do if you can. It can mean outsourcing laundry and house cleaning, not flying economy class, not driving yourself, skipping queues by having artisans and professionals on subscriptions, etc.

Your Money Dial, Your Way

You may have a more than one money dial and your money dial can (and should) change over time as your personal and financial circumstances change. It might shift from luxury to family when you have kids. Or from convenience to self-improvement when you're building a new career.

And no matter your income, there’s a version of your money dial you can live out now while planning and saving for the bigger version you want later.

The goal? To be as clear about your values-driven spending as you are about your investments or savings. To cut down on things that do not make you happy and create more room for the things that do. Because enjoying your money well is part of financial wellness too.

Always remember, life isn’t just about saving, investments, retirement, pensions, and other related stuff, it’s about balancing your preparation for the future while enjoying your money as well.

Reflect on This:

• If I opened your bank statements right now, can I easily guess what your top money dial is?

Reply to this email with your #1 money dial!

Till next week, I am rooting for you, money-ly!

Dee

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Disclaimer: This does not constitute financial advice. Please conduct your research or consult your financial advisor for important financial advice.