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The Art of Spending Money: How to Get Rich and STAY Rich | Morgan Housel

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Tech News, News, Technology

4.81.1K Ratings

🗓️ 6 October 2025

⏱️ 83 minutes

🧾️ Download transcript

Summary

How do you spend money in ways that actually make life better? Morgan Housel, author of the new book The Art of Spending Money, explores status vs. satisfaction, the hedonic treadmill, and why money’s best use is buying independence. We also cover quiet compounding, a practical 15-stage path to financial freedom, when to spend vs. save, helping kids without spoiling them, and small experiments that raise the utility of every dollar. ------ 📣SPOTIFY PREMIUM RSS FEED | USE CODE: SPOTIFY24  https://bankless.cc/spotify-premium ------ BANKLESS SPONSOR TOOLS: 🪙FRAXNET | MINT, REDEEM, EARN  https://bankless.cc/fraxnet 🦄UNISWAP | SWAP ON UNICHAIN https://bankless.cc/unichain 🛞MANTLE | MODULAR L2 NETWORK https://bankless.cc/Mantle 🌳KGEN | REQUEST A DEMO  https://bankless.cc/KGEN-podcast 🐂BULLISH | U.S. EXCHANGE LAUNCH  https://bankless.cc/bullish 💠BIT DIGITAL ($BTBT) | ETH TREASURY  https://bankless.cc/bit-digital We’re being compensated by Bit Digital (NASDAQ BTBT) for this segment promoting their company and BTBT. The compensation is paid in cash as a one time payment. You can find additional information about Bit Digital and BTBT on their Investor page at https://bit-digital.com/investors ------ TIMESTAMPS 0:00 Intro 2:29 Who’s The Book For? 5:49 There’s No Universal Formula 12:59 What People Want 19:36 Money as a Curse 22:03 Taking a Step Off 26:59 Holding vs Spending 30:26 Identity Traps 33:50 Secret to Contentment 37:32 External vs Internal Benchmarks 40:41 Making an Impact 42:37 Social Debt 50:51 Quiet Compounding 55:10 Financial Freedom 1:02:20 Money & Parenting 1:09:48 Balancing Saving & Spending 1:14:44 Small Purchases 1:16:59 Trying New Things 1:19:29 Morgan’s Financial Decisions 1:21:37 Closing & Disclaimers ------ RESOURCES Morgan Housel https://x.com/morganhousel?lang=en  The Art of Spending Money https://www.amazon.com/Art-Spending-Money-Simple-Choices/dp/0593716620  ------ Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures⁠

Transcript

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0:00.0

dopamine doesn't care how much you have.

0:01.6

All it wants is more, more, more. What would feel better? Your net worth is $100,000 during a bull market or your net worth is a million dollars, but it's going to be a million dollars for the next decade. Yeah. What feels better? The bull market feels so much better. The growth is what feels good. And so because of that, no matter what your net worth is, the right amount

0:22.1

that you think is going to satiate you is always 2x. A lot of people think getting rich is the key to

0:31.8

solving their problems. Are they right? I think they can be right. They can be right. So the answer is not no, but it's not a resounding yes either. I think it is very easy for everybody to assume that if you wake up in the morning and you're like, oh, I'm not satisfied with my life. I have this hole that needs to be filled. It's very easy to assume that that hole needs to be filled with more money.

0:54.9

Why? Why is that the assumption? I think one of the big reasons why that is so easy to make

0:59.8

that assumption is this. Money is so quantifiable. And so you can measure your progress and I can

1:06.3

measure myself relative to you very easily, very, very easily. I give the example of this. If I said I wanted to be a better husband, I'd like to be a 10% better husband, great goal, very noble goal. I would love to be a 10% better. What the hell does that even mean? How do I measure that? How do I try to progress? There's no husband points. If I were to say, like, who is a better father? Me or you or somebody,

1:28.0

who knows? But if I said, I want to increase my net worth by 10%, I can track that.

1:33.2

If I said, I want to have a higher net worth than you, I can track that, down to the penny,

1:37.6

a purely objective. So I think because it is so easy to quantify, it's easy to overestimate

1:42.9

the importance. And again, if you wake up with a

1:44.7

hole in your life, the knee-jerk assumption is very commonly that a hole needs to be filled

1:50.2

with money. Now, again, I think that can be true sometimes. I think everybody can use money to live

1:55.5

a better, happier, more fulfilling life. But I think we overestimate the extent of what it can do. And so there is a long

2:02.3

list of things that money can do to give yourself a better life. There is an even longer list of

2:07.0

things that it cannot do for you. And so many times in life, that hole that you have in the morning

2:11.4

might be what needs to be filled in there is a different career, better relationships, better

2:17.2

health, those kind of things.

2:18.8

And by the way, you can use money to help those things. But it's not a direct one for one.

2:24.3

You know, if only I had more money, that whole would be filled and everything would be great.

2:28.6

That's rarely the case. Got it. So you're saying basically money should not be the default.

2:32.5

I want to get into the case that you're making. So the book is called the art of spending money. And this is after Morgan, you've written books on investing basically, the psychology of money, same as ever. These were books on how to earn, how to save, how to invest, particularly how to work your mental and your brain software to be oriented towards those things.

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