Book Written By: Morgan Housel
The Art of Spending Money: Simple Choices for a Richer Life
Listening to this audio book, I found something truly insightful in every chapter. I wish there were a few more chapters to fill out the thought-provoking concepts. This is the second book by Morgan Housel that I have reviewed and given a thumbs-up. His other book, The Philosophy of Money was an insightful study of behavioral finance.
The overarching theme of the book is to take control of your perceptions of money and focus on what brings you the most utility. By taking a careful look at what is personally important, you can dispel the many messages from society that drive the maximum consumption message.
A capstone quote from the author, “The best financial decision I ever made was figuring out what I don’t want. That clarity – and knowing you can live happily without – is more valuable than any amount of additional income.”
A concept that made me stop and think was the idea of “managing your own expectations.” A steady dose of indulgence leads to an expectant attitude and reduced marginal returns, whereas an unexpected treat leaves us feeling pleasantly satisfied. Housel argues, it is an asset to be able to manage your expectations downward. Here is an interesting concept to consider; someone expecting first class treatment in the front of the plane is likely to find something disappointing, whereas someone upgraded to the same seat will find the luxuries a treat. It can be a skill to continue to be pleasantly surprised by things others take for granted.
I found this book enjoyable and recommend it to anyone looking to improve the utility of their spending.
