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136. The Art of Spending Money: Morgan Housel Book Review
Nov 9, 2025

We are discussing Morgan Housel’s new book, The Art of Spending Money, and exploring the psychological and practical challenges of how we spend money to maximize happiness and utility. We dive into the core concepts of the book, contrasting the typical financial focus on accumulation with the crucial art of mindful spending. We discuss how our individual life experiences deeply influence our money stories, leading to the insight that “all behavior makes sense with enough information.” The discussion includes a debate on whether spending is driven by genuine utility or simply the desire to impress others, and the powerful role of managing expectations as a key to increasing contentment and wealth. 

Liz and Andrew join this week’s podcast as we talk about:

– A review and discussion of Morgan Housel’s book, The Art of Spending Money

– The argument that spending is the most crucial financial decision is often confused with wealth accumulation

– The psychological insight that all behavior makes sense based on unique life experiences

– The challenge of spending to impress others versus spending for personal utility

– The power of managing expectations as a direct path to contentment and greater wealth

– The concept of the hedonic treadmill and finding joy through occasional treats rather than perpetual luxury

– Prioritizing “eulogy virtues” (people, memories, relationships) over resume virtues (material success)

– The idea that “personal finance is more personal than it is financial.”

– The importance of finding a middle ground between extreme frugality and overspending.

 

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