016 - What to Spend Money On

Episode 016: What to Spend Money On – "Invest Better"

Synopsis

In Episode 016, Jared dismantles the generic financial advice of "spend less, save more." Arguing that savings alone is "weak sauce," Jared applies the Everything Is Investing (EII) framework to daily expenditures. He challenges the cultural assumption that experiences should always be prioritized over things, pointing out that while the best experiences are often free, the best things cost money and have an objective ROI.

Listeners will learn to view spending as a positive allocation of resources designed to buy back time, own their attention, and lower the friction of meaningful pursuits.

Detailed Sequential Outline

I. The $1,000 Hypothetical and the Motivations of Spending

(1:27) Enjoyment vs. Happiness: Jared asks how you would spend $1,000 for enjoyment, noting that while money doesn't create happiness, it can fund enjoyment through experiences, things, or time.
(3:17) The Generosity Trap: Giving money away can be the "most selfish thing you could do" if the true purchase is accolades or attention.
(4:37) The Influence of Others: Subconsciously, we spend based on what we think others expect or to avoid "watch snobs" and internet critics.
(8:54) Conspicuous Consumption: Spending is a signal of values and status; even the claim "I don't care about status" is often a status-seeking strategy.

II. Deconstructing "Spend Less, Save More"

(10:58) Rejecting Generic Advice: Jared dismisses the "avocado toast" and "latte factor" critiques as simplistic moralizing.
(12:28) Savings is "Weak Sauce": Money in a mattress or a stagnant bank account is useless; it must be invested to be powerful.
(13:22) Optimizing Spending: If spending gets you closer to your purpose, you might need to spend more, not less.
(15:49) The New Motto: "Invest Better": All spending should be viewed through the lens of a capital allocator or portfolio manager looking for an intentional outcome.

III. The Overrated: Where Money Fails to Move the Needle

(16:55) Experiences: Culturally assumed to be the "right" answer, but Jared argues the best experiences (family dinners, workouts, books) are free or low-cost.
(19:19) The Remembering Self: We rewrite bad experiences (like a terrible vacation) into "nostalgia," while things are objective and cannot be lied about.
(22:54) Education: ROI in education scales with time and energy, not necessarily dollar amount. A free online course can offer more knowledge than an expensive university if the personal investment of "macros" is higher.
(27:03) Relationships: Money is the "least impactful currency" here and can even act as "gasoline on a fire" for a broken relationship.

IV. The High-ROI Targets: What You Should Spend On

(30:02) Owning Your Attention: Pay to remove ads and for high-quality information sources. What we consume through our eyes and ears literally "becomes us."
(32:08) Buying Quality: Spend more on things where you spend significant time, specifically mattresses and shoes, as you spend roughly a third of your life in each.
(33:15) Lowering Friction: Invest in tools that make important tasks easier (e.g., a high-quality coffee setup, a home gym, or a better computer monitor).
(34:26) Removing Annoyances: High-value spending includes fixing squeaky doors, bad lighting, or spotty internet—items that provide recurring daily frustration.

V. Buying Back Time and the Discipline Requirement

(35:56) Money to Time Conversion: This is the most powerful use of money, but only if you have the discipline to invest the reclaimed time rather than waste it.
(38:13) Switching Costs: Pay to reduce transition times (living closer to work, better parking, seamless tools). Lost time is often hidden in the "switching" between breakfast, gym, and office.
(40:28) Offloading "Hate-to-Do" Tasks: If you are bad at it or really hate it (taxes, certain DIY projects), paying a professional increases the effectiveness of your own "reps."
(41:51) Seasonal Premiums: Buying back time is most valuable in high-demand seasons, such as having young children or a career transition.

Quotes to Remember

"I'm a different kind of financial advisor because I also take issue with 'spend less.' Everything is investing—even your daily spending."

"Savings is weak sauce... it needs to be invested to be powerful."

"The best experiences in life are usually the ones that can be had for free. But the best things in life cost money."

"Money doesn't move the needle in those areas that really do contribute to happiness. Why are we surprised when a decade down the road we make twice as much money but we’re half as happy?"

"If you buy back your time just to waste it, you didn’t make an investment. You just paid a premium to end up with the same result."