Derek Hagen, CFA, CFP®, FBS®, CFT™
“Money is a tool. It will take you wherever you wish, but it will not replace you as the driver.”
-Naval Ravikant
Every purchase has a job. Better outcomes come from being clear about whe your hiring.
The Missing Question Behind Most Spending Decisions
Much of the conversation around spending gets framed as experiences versus stuff. But that framing misses a more useful question: What are you actually buying this for?
Every purchase is, in effect, a hire. You’re bringing something into your life to do a job. Sometimes that job is obvious. Sometimes it’s emotional, symbolic, or serving multiple purposes at once.
When clients struggle with spending decisions, it’s often not because they’re reckless, it’s because they’re unclear about the role they want their money to play.
Every Purchase is Hiring for a Job
Whether we say we’re buying something or hiring it, the underlying reality is the same: the thing we purchase is expected to perform a function.
- Sometimes the function is practical.
- Sometimes it’s emotional.
- Sometimes it pulls double duty.
Problems arise when spending happens without clarity; when money is spent “just to spend it,” or when the story we tell ourselves comes after the purchase.
The goal isn’t to eliminate spending. The goal is to understand the reason behind it.
Intentional spending doesn’t mean rigid spending. It means conscious spending.
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How to Match the Job to the Most Efficient Hire
Because humans are excellent justifiers, it’s not enough to say, “I need security,” or “I need transportation,” or even “I deserve this.”
A better question is: Is this an efficient hire for the job I need done?
In many categories, effectiveness increases quickly with cost, and then drops off. Paying more doesn’t always get you meaningfully better results.
This is where advisors can help clients move from vague justifications to clearer trade-offs.
Efficiency Isn’t the Same as Being Cheap
Efficiency isn’t the same thing as cheap.
Sometimes the lowest-cost option isn’t capable of doing the job well enough… or at all.
Quality matters. Durability matters. Cost-per-use matters. But higher price should be intentional, not automatic.
The goal is not to always buy the cheapest option, and it’s not to always buy the best.
The goal is to be clear about the level of quality required, and then get the best value at that level.
Ask Better Hiring Questions About Money
Most spending questions miss the mark.
It’s not just:
- “Do I need this?”
- “What am I getting for this?”
The more useful question is: Is this an efficient hire for the job I need done?
That shift moves the conversation:
- away from guilt
- away from impulse
- and toward alignment
For advisors, this framing offers clients a way to think about spending that respects both emotional needs and practical constraints, without moralizing either.
FAQ: Hiring Your Stuff Like a Boss
What does it mean to “hire” your purchases?
Hiring a purchase means being clear about the job you want it to do—practical, emotional, or symbolic—before spending money on it.
Why do people struggle with spending decisions?
Most spending struggles come from unclear expectations. When people don’t know what job they want a purchase to perform, regret and justification follow.
What is an “efficient hire”?
An efficient hire is a purchase that performs the needed job well without unnecessary cost. Paying more doesn’t always lead to better outcomes.
Is hiring efficiently the same as being cheap?
No. Efficiency is about matching quality to need. Sometimes the cheapest option won’t do the job, and sometimes higher price adds no real benefit.
How can advisors use this framework with clients?
Advisors can help clients shift from guilt-based spending questions to clarity-based ones, focusing on alignment rather than judgment.
Want to Learn More?
Money Quotient trains financial professionals in the True Wealth process and helps them implement the concepts into their practices. The first step is to learn about the Fundamentals of True Wealth Planning.
References and Influences
Ariely, Dan & Jeff Kreisler: Dollars and Sense
Clements, Jonathan: How to Think About Money
Dunn, Elizabeth & Michael Norton: Happy Money
Hagen, Derek: Your Money, Your Values, and Your Life
Housel, Morgan: The Psychology of Money
