Optimal Finance Daily - Financial Independence and Money Advice 3348: [Part 2] Spend Less - Live More by Leif of Physician On Fire on Intentional Spending and Lifestyle Design
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Nov 10, 2025 Leif explores the surprising link between mindful spending and happiness, challenging the idea that a high income equals greater joy. He highlights research showing that spending less can enhance freedom and satisfaction. Through personal anecdotes, he illustrates the minimalist lifestyle benefits and shares budget tools like YNAB. By prioritizing intentional living, listeners can discover personal growth and a renewed appreciation for what they already have, proving that less can indeed mean more.
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Income Raises Satisfaction But Not Happiness
- High income raises life evaluation but not emotional well-being beyond a point.
- Kahneman and Deaton found happiness plateaus around $75K (2010), inflation-adjusted nearer $100K now.
Spending Trades Off Future Freedom
- Net worth and spending diverge: spending more reduces saving and future happiness.
- A dollar spent is a dollar not saved or invested, which lowers long-term options and wellbeing.
Happiness Follows A Preload-Output Curve
- Spending follows a diminishing-returns curve similar to cardiac preload and output.
- Low spending raises happiness up to a point, then overspending causes stress and decreasing wellbeing.
