We all think about how to earn and save money. But how often do we think about how to spend it well? That’s the question Morgan Housel explores in his new book, “The Art of Spending Money.” I recently finished it, and it’s packed with insights that challenge the way we view money and happiness.
Here are a few lessons that stood out:
- Spending is personal. What feels meaningful to one person can seem wasteful to another. There’s no universal “right way” to spend, but there are wrong ways.
- Spending for Status is a losing game. Spending money to chase admiration or self-worth rarely ends well.
- Wealth takes time. As Morgan puts it, “The fastest way to get rich is to go slow.” Sustainable wealth comes from consistent, intentional actions, not chasing hot stocks or quick wins.
- Emotions drive decisions. Fear and greed often pull us off course. A solid plan helps keep us grounded and avoid short-term mistakes.
- True wealth = freedom. Money you don’t spend buys independence and flexibility, the ability to use your time your way.
- Experiment with joy. Spend on what genuinely brings happiness and fulfillment, and cut what doesn’t.
I started reading the book on a trip to Maine for my 30th birthday. At first, I felt anxious about the cost, but traveling with loved ones is one of the things that brings me the most joy. That clarity helps me save for what matters and skip what doesn’t.
What spending gives you the most fulfillment?
P.S. If you want to take control of your financial journey, do yourself a favor and read Morgan's books. You won't regret it.