If you’ve been part of the HerMoney community for a while, chances are you’ve heard us recommend The Psychology of Money more than once, or a dozen times. It’s the personal finance book that everyone in our private HerMoney Facebook group seems to have on their nightstand, and with good reason; author Morgan Housel has helped millions of people rethink their financial lives.
Now, he’s back with a new book: “The Art of Spending Money.” And on this week’s episode of the HerMoney Podcast, Morgan joins Jean Chatzky to talk about something that doesn’t get enough attention: how to actually spend the money we’ve worked so hard to save, and how to enjoy it.
There’s No Right Way To Spend, And That’s the Point
Jean Chatzky: Before we get into the new book, Morgan, you’ve had a huge amount of success with the last one, The Psychology of Money. It makes the case that growing money is a science, but in the new one, you make the case that spending money is an art. Why the distinction?
Morgan Housel: I called this book The Art of Spending Money. I did not call it the Science of Spending Money because I don’t think that exists. Art means that it is often contradictory. It is different from person to person.
It is a soft, mushy topic. I don’t tell you how to spend your money in this book because I don’t know you. And so this is a book that looks at the psychology of envy, of greed, of jealousy, of contentment, of happiness. And then you can hopefully use those lessons, that broad understanding of what’s happening inside your head, to put it into context within your own life.
Spend on What Matters (It’s Usually Not Stuff)
Jean Chatzky: You make the point that when we spend money in ways that do manage to make us happy, it usually happens in indirect ways. Can you talk about what that means?
Morgan Housel: Yeah. I had this realization a couple of years ago. I went to Hawaii with my family. I was building a sand castle with my two young kids on the beach. And I remember thinking, this is a 10 out of 10. This is peak life right here.
But then it hit me that if we had stayed home and I was building Legos on the living room floor with them, that’s a 9 out of 10. That’s nearly as good. What was making me happy was the uninterrupted time with my kids, not the sunshine, not the beach. Even though those are lovely, it was the quality time that mattered. Spending money is often just a door that can open up to lead you to something that will bring you true quality happiness in life.
The Simple Formula For a Rich Life
Jean Chatzky: Let’s talk about people who are in retirement or heading toward retirement. They’ve saved, well, they’ve done the hard part. They have trouble, according to some recent research, spending. What’d you find out about this?
Morgan Housel: When you cannot spend even a very reasonable amount of money, then the money isn’t in control of your personality. It’s telling you how to live. And at the highest level, I want to use money as a tool to live a better life. I want to use money as a tool to improve my life.
Many people will chase retirement for decades, only to wake up two weeks later, and the feeling they have is some version of boredom. For many people, the truth is that what they want to do in life is what is useful, productive, and adds value to the world.
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MORE ON HERMONEY:
- The FIRE Movement In 2025: JL Collins On Why The Simple Path Still Works
- The Gen X Guide To Retirement Planning
- How to Stop Spending Money When You’re Bored
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