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How to get better at spending money

Bestselling author Morgan Housel on the psychology of splashing your cash

“People are often bad at knowing how to spend their money,” wrote the American columnist David Brooks after going on safari in Africa.

He and his family stayed in seven different locations on the trip — some were modern and luxurious, while others were camps, sometimes lacking running water. When they got home, the family realised they had enjoyed their time in the cheaper camps more than in the luxury resorts.

At the cheaper ones they could socialise with the other guests, or play football with the staff. The expensive ones were sterile and isolating. If you stay here, the hotels seemed to promise, you will hardly notice the difference between midtown Manhattan and the Serengeti.

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