“The Art of Spending Money”: Just a Remix?

When Morgan Housel’s third book, The Art of Spending Money, was published last year, it brought a buzz to the personal finance community.

I’ll be honest: While I enjoyed his first book, The Psychology of Money, I didn’t excite me enough to rush out and grab a copy.

Moreover, after serving as the household CFO for over twenty years and doing a credible job of it, I didn’t think I would gain many new insights.

However, a 25% discount at Popular Bookstore during the last school holiday, coupled with the thought that it might provide a useful foundation for my teenage daughter, prompted me to pick it up.

See, I was already practicing The Art of Spending Money with the very purchase of this book (you know….mindful spending).

Did this investment pay off?

Morgan Housel remains a master storyteller, but if The Psychology of Money was a 5-star revelation, this is at most a 3-star for me.

For the seniors (I mean seasoned), it occasionally feels like a remix of familiar tunes. However, credit to Housel, he frames these ideas in a way that can reach different readers, especially those just starting out.

That said, here are two key points that stood out and resonated with me.

Saving is a Strategic Purchase of Time

Most people frame saving as “delayed gratification”— the painful act of saying “no” to a treat today for a potentially better outcome tomorrow.

We’ve all seen the famous “Marshmallow Test” video. It’s based on a famous Stanford longitudinal study which suggested that children who could exercise restraint would do better in life.

I am all for discipline, but taken to the extreme, delay for the sake of delaying can become unhealthy. Some experiences and purchases aren’t meant to be postponed. They have an expiration date.

This is why I find Housel’s framing so refreshing: “Saving is just another form of spending – you are buying future time.”

It’s not about holding back or depriving yourself; it’s about deciding which time you want to purchase — the present moment or the future.

You might argue it’s the same thing, but the neurolinguistic shift is profound.

When saving is no longer viewed as a “sacrifice” but as a strategic acquisition of freedom, it evokes a sense of positive feeling that will empower you to stick to your game plan.

Wide Funnel, Tight Filter: Finding What Suits You

Housel introduces a concept in the book that applies as much to reading as it does to spending: The Wide Funnel, Tight Filter.

The idea is simple: most of us don’t actually know what makes us happy. We think we know, but we are often just mimicking what society or social media tells us to want.

To find out what truly brings you joy, Housel suggests you start with a Wide Funnel — be willing to try a variety of experiences, small luxuries, and different lifestyles.

But here is the catch: you must then apply a Tight Filter.

Once you realise that a certain “luxury” — whether it’s a flashy gadget or a lifestyle habit — doesn’t actually move your happiness needle or make you feel more fulfilled, you cut it ruthlessly.

Conversely, once you find the few things that do bring you genuine joy, you’ll automatically be willing to spend on them.

You aren’t controlled by money anymore; you control the use of it.

Invested in Nearly 250 Companies

While Housel applies this to spending, it is exactly how you can build a personalised portfolio that works for you.

Over the last two decades, I have put money into nearly 250 different companies.

It’s not a statistic I’m particularly proud of. In many cases, especially the earlier years, I didn’t do sufficient due diligence and cast a net that was far too wide.

However, that “Wide Funnel” phase was necessary to shape the investor I am today. By testing various industries, business models, and management styles, I learnt what resonated with my temperament and what I wasn’t interested in.

For example, I just shared recently that I don’t enjoy investing in conglomerates. Or my adaptation of the timeless advice by “Timing” the Market for Time in the Market to fit my psyche.

These days I still dip my toes into new companies, but the filter is much tighter.

Among the 30 companies I have in my portfolio, only about 10 to 20% enter or exit the portfolio annually. On the other hand, the median holding period of my top 15 positions is more than six years.

Just like spending, once you know what fits you, you stop chasing every “hot tip” or flashy growth stock. You settle into a core group of companies that you understand and trust.

You aren’t just holding stocks; you are holding a portfolio that is a reflection of your own clarity.

Final Thoughts: A 3-Star Supplement

At the end of the day, The Art of Spending Money is a good read, especially if you can snag it at a 25% discount. It’s a useful foundation for the next generation, like my daughter, to understand that money is a tool for autonomy.

But for the veterans, it might feel a bit like a refresher course.

My favourite is still Housel’s original masterpiece The Psychology of Money. You can read my full series of reviews on that 5-star masterpiece here:

• The Psychology of Money I: Luck and Risk
• The Psychology of Money II: Enough and Compounding
• The Psychology of Money III: Staying Wealthy and Tail Drives Everything
• The Psychology of Money IV: Freedom and Reasonable > Rational