525. The Art of Spending Money (And Why Most of Us Get It Wrong) with Morgan Housel

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Sep 29, 2025

Morgan Housel, bestselling author known for his insights on financial behavior, returns to discuss his new book on spending money wisely. He emphasizes that while money can buy comfort and freedom, it cannot purchase love or meaning. Housel argues for prioritizing utility over status in purchases, urging listeners to consider what truly brings joy. He also digs into how children learn financial values through observation rather than lectures. Finally, he challenges listeners to rethink societal pressures on spending and align their expenditures with personal values.

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INSIGHT

Money Has Real Limits

Money can buy comfort and independence but cannot buy love, health, or meaning.
Recognizing what money cannot fix helps prioritize spending on what truly matters.

INSIGHT

The Tangibility Trap

We overvalue money because it's tangible and easy to measure compared with relationships or being a better parent.
That tangibility makes money an easy proxy for progress even when it shouldn't be.

INSIGHT

Comparison Gets Amplified Online

Social comparison has exploded with social media and intensifies feelings of falling behind.
Your comparison set is now curated and endless, making contentment harder to achieve.

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Morgan Housel is back on the show to talk about his newest book, The Art of Spending Money. You know him from The Psychology of Money and Same As Ever. This time, we dive into what happens after you’ve earned the money—how to actually use it well.

Morgan makes the case that money can buy comfort and independence, but not love, health, or meaning. Because it’s easy to measure, many of us fall into chasing money as a proxy for progress and end up stuck in comparison games. His antidote: spend for utility, not status. Think high-end Toyota over entry-level BMW—the value you feel, not the logo others see.

We also explore parenting and money. Kids pick up on our financial habits more than our lectures. Modeling empathy, consistency, and healthy values goes further than rules or restrictions. And we connect this back to The ONE Thing: clarity. When you’re clear on what really matters, you can spend money to buy back time, deepen relationships, and build freedom—like Morgan’s “reverse obituary” exercise that helps align spending with what you want your life to stand for.

Challenge of the Week:

Ask yourself (and your partner): What are we spending money on that doesn’t bring us joy—but we think we’re supposed to enjoy? Pick one and experiment with reducing or replacing it.

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To learn more, and for the complete show notes, visit: the1thing.com/pods.

We talk about:

How to swap status spending for utility spending
Why kids learn money values from what we model, not what we say
A simple “reverse obituary” exercise to align money with what matters

Links & Tools from This Episode:

Read The Art of Spending Money by Morgan Housel
Read The Psychology of Money by Morgan Housel
Read Same As Ever by Morgan Housel
Read Die With Zero by Bill Perkins
Read 30 Lessons for Living by Karl Pillemer
Free Resources
Want to be a guest or share feedback? Email podcast@the1thing.com or send us an audio note at Speakpipe.com/the1thing.

Produced by NOVA