The 1% Approach to Spending — For Your Version of Wealth

This is the transcript of The Refreshing Leadership Podcast episode: The 1% Approach to Spending - For Your Version of Wealth, published on 23rd February 2026.

We spoke in January about getting our financial house in order, but what's it all for? What are we actually meant to spend our money on?

Today I want to introduce a concept, and full credit to Ramit Sethi for this - it's his concept and he's done phenomenal work in this space. It's called Money Dials.

In simple terms, money dials are the areas of your life where you are happy - or even excited - to spend more. They're the things where you're okay spending more extravagantly, without resentment. And crucially, once you know what your money dials are, you can turn them up unapologetically and cut back mercilessly on the areas that don't matter to you.

When I first came across this idea, I wasn't convinced I had any money dials. I thought, I don't like to overspend. But I realised very quickly that I absolutely do.

My biggest money dial is convenience.

Once I saw that, a lot of my expenditure suddenly made sense. And other people's expenditure that had previously puzzled me started to make sense too, because I could see it through the lens of their money dials.

Why money dials matter

One of the most powerful things about this framework is that it helps us understand how other people value money and choose to spend - and it helps make sense of that. It's a little bit like a personality test at work. Until you do those tests, certain quirks in your colleagues can really bother you. But once you realise that you sit at opposite ends of a spectrum in a particular dimension, you can appreciate where they're coming from, relate to them better, and work with them more effectively. So this is also really great to understand inside relationships.

Ramit Sethi has a great line: show me how somebody spends their money and I'll show you what they truly love. He has said, through thousands of conversations, that he can spot people's money dials in 10 minutes just by looking at their spending.

The 10 money dials

Ramit Sethi has identified 10 common money dials, and I want to share them here as a starter set. You may well want to add your own once you've heard these. I'm also going to offer a coaching twist that might be really helpful, so stick with me.

The first is convenience - spending money to save time and reduce friction. Whether that's delivery services, extra help at home, or pre-prepped food, it's about setting your life up in a way that isn't inconvenient. Underneath this dial is often a deep value for time and mental space. Ramit Sethi mentions this is his top dial, and it's one I strongly relate to personally.

The second is travel. People with this money dial will plan trips obsessively, know all the hacks, and get genuine joy from the experience. Travel is a huge part of their identity.

Third is health and fitness - investing in your body and your energy. This might mean spending on personal trainers, nutrition, specialist gyms, retreats, or coaching. This is personally very high on my list. It's actually helpful to see it named as a money dial, because otherwise the amount I spend on gym, PT, and supplements - compared to the scruffy clothes I actually wear to the gym - says it all.

Experiences is another money dial. People who love novelty and memory-making might be going to concerts, having unique meal experiences, or seeking once-in-a-lifetime moments. This overlaps with travel, and that overlap is actually where things get really interesting - which I'll come back to.

Freedom is another one - not having to worry about money, having choice, being able to say no. This often shows up around work: being able to choose your hours, fund time off, buy flexibility. This is a really important money dial for me. Having choice and the ability to say no is incredibly important to me, and I don't take that for granted.

Number six is relationships - spending money to stay close to the people who matter. Whether that's choosing to live near family, giving meaningful gifts, or going on shared holidays, it can be really deeply intentional spending.

Generosity is number seven - giving joyfully. That could be spontaneous gifts, funding experiences for others, or charitable giving.

Number eight is luxury or quality, and this one needs a little nuance. For some people it's brand and design; for others it's more about craftsmanship, longevity, and function.

Number nine is social status, which is a slightly uncomfortable one, but a useful one. This is status signalling - it could show up in clothes, loyalty tiers in memberships, or where and how we show up. You don't have to love this dial - it's certainly not one of mine - but pretending it doesn't exist doesn't make it go away. It's useful to recognise that it might show up in others.

And the final one is self-improvement - or as I'd prefer to call it, levelling up. It's a love of learning, coaching, books, and tools. Think of it more as capacity building, investing in your future self. That is something I can absolutely get behind.

The coaching twist: combining your money dials

You might feel that quite a lot of these appeal to you, or not very many at all. In my case, I have a few - ranging from relationships to convenience, to fitness, to self-improvement.

And here is my coaching twist: combining the money dials. This is where you get to the elite level. The money dials that combine several of your top ones are going to be your real spend - the places that give you the most payoff.

For example, we made sure we lived within walking distance of an amazing fitness facility. That was convenience and fitness rolled into one. Likewise, relationships and experiences can go hand in hand if they're both important to you, or freedom and self-development.

Thinking about where you can really dial up and get the most out of your personal money dials is going to give you the biggest bang for your buck.

One thing worth noting though: money dials are not the same as values. Values and how you spend your time are different. You might deeply value nature, beauty, or slowness - and none of those might show up in the list I've just shared. That doesn't mean they matter more or less. This is just the money lens. In the workplace or in leadership programmes, we often talk about values and strengths - I think money dials are additional. They help us understand the real language of money for ourselves and those around us, and that makes them an underutilised concept.

How to use this

After this episode, take a minute to identify your top three. Notice where you spend a bit more freely and where you spend a bit more resentfully. Ask yourself: where can I dial up with a bit of confidence? And on the flip side, where can I cut back without loss?

On the cutting back piece - whilst this isn't exactly cutting back - I am militant about returning things that don't feel right. Here's a silly example. My son was obsessed with getting a table tennis robot for Christmas - one that just shoots out balls in different ways so he'd have somebody to play with when the rest of us were too tired. There was a lot of excitement on Christmas Day. We got it all set up, and initially he used it a lot. A week later I noticed he wasn't really using it - it required a bit of setup because he needed a net and so on.

I said to him: look, we're still within the return window. If it's not quite as exciting as you thought, this is your opportunity to return it. Initially he resisted, I think because he felt he was supposed to love it and want to keep it. But I said there's no harm in returning it - if you realise it was a mistake in six months, we can buy it again. And actually he was delighted. He returned it, and he now has a budget for Ami pens and Beyblades instead. I was really willing to make that U-turn with him. Because as a declutterer, you never ever get your money back - the only time you do is when you buy something and return it within the return window in the right condition. So I'm ruthless on that.

Have a think about where you naturally sit with your money dials, how you can dial things up, and have some fun with this. I also think it's a really nice exercise to do with your partner - sharing which money dials you have in common, which ones you don't, and whether that sometimes causes tension. That can open up a really useful conversation about money and relationships.

Getting in tune with our money dials, I think, is an amazing way to build the rich life that Ramit Sethi talks about. I would love to hear what your money dials are - drop me a note at info@mayagudka.com.

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To find out more about Ramit Sethi, please visit his website here.

About Maya

Maya Gudka is an executive coach specialising in C-suite career progression and leadership development. She works with senior leaders in major organisations on strategic career planning, executive presence, and building sustainable influence. Maya hosts The Refreshing Leadership Podcast, which ranks in the top 2% of podcasts globally and has nearly 300 episodes exploring the challenges faced by ambitious professionals.