Why do you think Mercedes-Benz chose “Good or nothing” as their slogan? Can’t a Honda Civic get you from one place to another without premium sound or a 577 horsepower engine? That’s right. But Mercedes owners want more than practical transportation. They want i experience.
Here are a few examples of comfort from students:
“A high-quality, well-designed backpack. I spend a lot of time walking in public, so having a bag where everything is easily accessible when you’re in a tight spot is important. I just got a Peak Design backpack and I love it.”
“I spend $300 a pop on Allen Edmonds shoes (I have two pairs now). People get confused when I tell them I paid. It’s such a luxury purchase that most of my friends and family can’t imagine having an extra $300 to spend on something as ‘frivolous’ as shoes. However, everyone comments on how beautiful they are and what it does to my overall appearance.”
“He paid thousands for an Eames lounge chair. I have never regretted it, and it automatically improves my day every time I sit on it. It’s worth every penny.”
“I spent $700 on boots 7 years ago and at the time it was a crazy luxury. I almost gasped when I bought them, I felt carefree, anxious, and I LOVE them! … 7 years later I still have them and I still wear them and they are still hot!! I still get compliments.”
Money Dial #9: Social status
The situation in society may seem a little small—and sometimes it is! We remember back in high school when we were judged for the kind of clothes we wore.
But there may be good reasons to value social status.
For example, a Rolex watch or a Loro Piana sweater works like an item for 1/100 the cost, but it says something about who is wearing it.
Don’t laugh—many people scoff at the position. But, these things convey a subtle condition that can equip people with “status” because they say something about their income or their personal taste or style.
Airlines, hotels, credit cards, shopping malls, and others offer loyalty cards that can get you extra benefits—better rooms, higher returns, free travel, and so on. Having a senior position can cost thousands of dollars a year.
Here are a few more examples of what the Money Dial social scene looks like:
“I was scheduled to do a vanilla wash and wax on Sunday, and instead I asked them what their service level was. They told me that they often prepare cars for car shows or dealer rooms, everything from high end to classic cars, and they can do everything from mirror polishing to full paint jobs. I ended up paying them $1,000 for a full paint job and a bunch of other things. Basically, 3 guys applied stuff to my car for about 8 hours. I don’t know exactly what it was, but it looks bad and I feel bad.”
“Three months ago I signed up for a $159 monthly subscription to Rent the Runway, a designer clothing site that sends you 4 pieces at a time so you can keep them for as long as you want.
I spend less time making decisions about what to wear, I feel and look better wearing well-made clothes, and I’m not bored with my wardrobe. It sounds fancy but it’s so worth it.”
“I bought a $1,500 full sail construction suit made in the U.S. People say ‘You know how many suits I can buy for $1,500? Just buy a rack and switch.’ It’s hard to buy suits in my size. The first time I wore a fitted suit, my VP at the time said, ‘Dude, you look like a model.’ I keep getting comments like that. By buying the above, people think you are taking yourself seriously and they, in turn, take you seriously. This is more expensive than several other majors.”
“I pay $450/year for the Chase Sapphire Reserve card which gives me access to an airport lounge for comfort and relaxation and rental car status to take any vehicle out of the area (from Corvettes to SUVs and I only pay for the center).”
Money Dial #10: Self-Promotion
There are many ways that many people spend money self development:
- Take the online course (copywriting, interpersonal skills)
- Sign up for a personal class (public speaking, dance)
- Hire a trainer at the gym
I am a great student (I try to read two books a week). In fact, I came up with “Ramit’s Law of Book Buying”: If you think a book looks remotely attractive, buy it. Don’t waste five seconds discussing it.
If you get one idea from a book, it makes it worth the price. That idea can be the one that changes your life or simply challenges the beliefs you have always held. And those moments are important for your development.
Another good way to think about self-improvement is called “The Hotshot Rule.” From former Cinnabon president Kat Cole: Every year, Cole would go to a quiet place, think about the company’s situation, and ask himself, “Let’s say a hotshot takes my job today. What are two or three things that a hotshot would look at and say, ‘That’s not acceptable. ‘”?
I think that is a good rule not only for business but also for every area of life. If someone came in and looked at some aspect of my life—what food I eat, my relationships, my health—what would they say is unacceptable? Once you identify those areas, you can focus on making changes.
Here are some examples from students that self-promotion is their Money Dialer:
“Teaching about skiing. I do it every day we go. It has changed my skills, and with great skills you get the best experience (views, scenery, thrills, peace) in the mountains.”
“I spent $15k on a sales coach. It turned out to be the best money I ever made. My income has more than doubled in less than a year. He was promoted to a position, and then he was searched for an incredible job. After about 9 months, the job volunteered to start paying. The new company I joined is sending other managers to similar programs now. My only regret is that I didn’t do it sooner.”
“I like to spend money improving my electric guitar skills by taking lessons from really good people. I recently had the opportunity to study with the lead guitarist of an internationally touring heavy metal band from the Bay Area. I’ve been watching these guys for years and my skills have gone through the roof. “
What is your dial-up fee?
One thing you may have noticed is that a few of these Currency Dials overlap—some of the things we spend money on appear in two categories. For example, a Rolex can be both luxurious and provide social status. Or hiring a trainer can be for health/fitness and self-improvement.
That’s right!
If something you’re investing in comes in two categories, see if you can identify the first category it belongs to. If it’s not clear, look at other things you spend on. Are they on one of those two Money Dials?
Once you identify the #1 Money Dial, it flows into your life and affects everything about how you spend your money. It is your own strategy. And the ways you spend your money are strategies for implementing that strategy. You are now the CEO of your life.
My favorite part of Money Dials: Once you’ve seen yours and accepted it, you can zoom in to your liking by moving the dial up, as I did myself for convenience.
This may seem extreme to some, but to me, it makes no sense at all. Because I know my Money Dial and can focus on it, I actually free up time to invest in my company… again I can earn even more money because of it.
Ready to start splurging? You need to make sure your finances are in order first. Meet the lovers His money is getting out of control.