Money dial

The concept of "money dials" is discussed prominently by Ramit Sethi on The Tim Ferriss Show. According to Ramit Sethi, money dials are categories of spending where individuals deeply enjoy allocating more funds. He identifies about ten money dials, such as travel, convenience, health and fitness, and relationships. The idea is to encourage people to spend significantly more on areas they love while reducing expenses in areas they care less about. This approach is proposed to lead to a more meaningful and personal definition of a "rich life" by magnifying the experiences individuals already cherish 1.

Sethi and Ferriss discuss the importance of spending extravagantly on things that bring joy and satisfaction, referring to these areas as "money dials." For example, if travel is someone's money dial, Sethi encourages thinking about what 10X-ing one's travel budget could look like and what it could enable them to experience 2.

This conceptual framework helps individuals to audit their financial habits and reorient them towards more fulfilling expenditure.