Money Mistakes We All Make (and How to Fix Them) } Full Episode

It is so easy to buy things these days, anything and everything.

A lot of the things you buy, it literally takes one click because they've got your credit card on file, shoes, travel, food, whatever it is.

The process and the technology has almost completely removed any friction that used to exist when it came to our spending.

Some people are having a real challenge with that.

And so we're hearing about and seeing people talk about online this idea of friction maxing.

So we're going to talk about what that phrase means with Hanna Horvath.

She is a certified financial planner and she is the founder and creator of the Your Brain on Money newsletter.

She joins us today from New York City.

Hello there.

Hi, I'm so happy to be here.

Maxing.

There's looks maxing.

People are using the word maxing everywhere.

Talk about what this idea of friction maxing means.

Yeah.

So friction maxing is essentially this idea that we should be intentionally adding inconvenience back into our lives.

You know, choosing the harder way sometimes instead of always optimizing for the easiest possible thing.

And you can apply that to so many different areas of your life.

But I think it is so interesting to apply it to your money and also so effective to apply it for your money.

You know, like you said before, the financial system has spent the last decade making spending as frictionless as humanly possible.

through the products, like you just said, like one-click buying, tap to pay.

And a lot of times it's all designed to basically get you to spend your money without even having to think about it.

And then if you look on the inverse of that, when it comes to saving money, a lot of times it's a lot harder or it's a lot like more friction to save money or invest or those things.

And a lot of that is designed as in our current structure.

So friction maxing is all about making spending harder and making saving and investing easier.