How often do you feel like you have too much stuff in your life? Do you feel like you often get swamped by it all – both literally and figuratively? What if we’ve got it all wrong – that living a simple life and saving money actually makes us happier?
Here’s the thing – studies have shown that owning fewer things actually makes you happier. This may (or may not) be a surprise to you, but my own experience suggests that this is true. There is a temptation to fill your life with things that clutter it up. After all, the economies of rich countries have been built on capitalism and consumption, and it seems completely natural to fill your life with stuff if that’s what everyone else is doing.
Why owning less makes you happier
- First, (as mentioned above), studies have shown that having less stuff in your life actually makes you happier.
- Second, owning less stuff means you’ll save money – money to save and invest, and which you can use to build long-term wealth with. Building wealth gives you so many options with how to manage your career and your time.
- Third, you’ll be less stressed over the fewer things you do own, and you’ll have more time to do other things. Like spending time with other people and enjoying experiences. You’ll probably find that you actually enjoy doing these things far more than you expected.
- Fourth, you’ll have more money to spend on those people and experiences.
So, it seems that owning less stuff is actually a win-win situation.
Why society pushes us to buy more
The obvious reason is that’s what society wants. We’ve built the largest economies in the world on consumerism. This is a tried and tested method – in 2024, the world spent $1 trillion USD on advertising. With decades to perfect their craft, businesses have engineered extremely precise and targeted advertisements for specific audiences and even individuals. They target our need for convenience, our emotional needs, our needs to express identity and our need to have a social status.
This advertising has worked fantastically well, to the point where you spend money when you don’t need too. Such as loaning a new car every four years, or buying a new phone every two – just because there is a new model out.
For me, getting outside in nature – often in the form of a long hike with a big sky, is one of life’s simple pleasures.
The hidden costs of buying stuff
When you buy something, the cost of ownership rarely stops at just the purchase price. There are hidden costs. Take, for example, a new mobile phone – there’s insurance to consider, the cost of maintenance, and perhaps even the more expensive data plan you want to go with it.
These may be small costs, but bigger purchases – cars especially – have much larger hidden expenses. When you want to buy a new SUV (for example), there’s always more to consider. The higher relative cost vs a small car will mean larger finance payments, higher fuel costs, higher maintenance costs, more expensive insurance and road tax. The real cost of ownership is far higher than the purchase price.
Real life example – a £20,000 car in the UK
As a very rough estimate:
- Insurance might cost £500 per year.
- Road tax in the UK depends on CO2 emissions (g/km), but might cost ~£200 per year.
- Fuel costs vary depending on mileage, but at current prices (£5.20/UK gallon), and assuming 40mpg, you might expect to spend £1300 per year if you drive 10,000 miles per year.
- Maintenance, including servicing and MOTs at ~ £500-800 per year.
- Average car depreciation in the UK is £1250 per year.
- It’s much worse if you buy the car with finance. If you borrowed £17,000 (with a £3,000 deposit) at an interest rate of 7% (competitive on the current market), you’d be paying back an extra £2500 over the original loan value. For a 4-year finance plan, this is £625 per year.
So, if you bought the car on finance, the true cost of ownership is ~£4500(!) per year in the UK. You can see now why cars are known as the biggest wealth killer for the middle class. Perhaps you should consider not driving at all. For short, intra-town journeys, cycling is around 10x cheaper than driving – and gives you a great workout in the process!
Buying more stuff won’t make you happier
“The tendency to return to a stable level of happiness after a positive or negative event.”
Hedonic adaptation suggests that buying more things does not make you happier. You might have a brief period of elation following the purchase, but happiness quickly returns to the base state (the same can be said for negative events). Think back to the last time you bought something big – a new phone or computer, or even a new car. For how long did you REALLY feel happy following the purchase? Can you remember feeling happier at all?
I can certainly attest to the fact that buying new things rarely makes me happy in the long-term. It has taken me decades of trial-and-error to realise this, but these days I value experiences and time far more than material things.
I now increasingly ask myself if that something I want will REALLY make me happy. And if I think it will, I sleep on it – I don’t buy it straight away. I might wait a week, a month, even 6 months if it’s some fancy gadget like a new phone. And after all that time, if I still want it, only then is it time to buy!
Owning a lot of stuff can even lead to greater unhappiness. You may find your life too cluttered to focus on the real things that matter to you. At the very least, you’ll have more things to keep track of, and will need more space to store it all.
Minimalism saves money and helps the planet
Buying less stuff, being less of a consumer and more of a minimalist, is much better for the planet’s resources. Fewer raw materials are dug out of the ground, fewer pollutants released into the environment and less oil is used.
Of course, your finances will also be much healthier if you own less. You’ll be spending less money each month, leaving with you with more to spend intentionally. Now that you have spare cash, you’ll probably find yourself more motivated to learn how to invest. Over time, these spending and saving habits will compound, leaving you in a much better financial position. There’ll be a double benefit – you’ll reduce spending, while also maximising your ability to generate a passive income through investing.
Final thoughts: simplify, save and be happier
Living a simple life enables you to be more streamlined and focus on the things that really matter to you. Is it buying a new phone or using that money to spend a long weekend away with your family? Living a simple life and saving money isn’t just about frugality (although your wallet will certainly thank you) – it’s about focussing on what truly matters.
FAQ
Living a simple life means intentionally focusing on what truly matters and removing unnecessary distractions, possessions, and expenses. It’s not about deprivation, but about clarity. By simplifying your lifestyle, you spend less on things that don’t add value, freeing up time, energy, and money for what genuinely improves your life.
Living simply reduces spending by cutting out impulsive purchases and unnecessary upgrades. When you stop chasing status or convenience for its own sake, your expenses naturally fall. This creates a gap between what you earn and what you spend, allowing you to save and invest more without feeling like you’re sacrificing your quality of life.
No. Frugality often focuses purely on spending less, often at the expense of enjoyment. Living simply is more intentional – it’s about spending on what matters and cutting out what doesn’t. You may still spend freely on things you value, but you eliminate wasteful spending that doesn’t contribute to your happiness or wellbeing.
Yes, significantly. A simpler life reduces decision fatigue, financial stress, and the constant pressure to consume more. With fewer distractions and obligations, you gain more control over your time and attention. This often leads to improved focus, better relationships, and a greater sense of contentment in day-to-day life.
Start by reviewing your spending and identifying what adds real value to your life. Reduce subscriptions, avoid impulse purchases, and declutter your home. Focus on low-cost, high-value activities like exercise, reading, and time outdoors. Over time, these small changes compound into a simpler, more intentional, and financially secure lifestyle.
What’s one thing you could declutter this week to save money and stress? Share in the comments below!
Want to find out more? You might be interested in the following posts:
- 14 ways to live an easier life
- Why you should appreciate the simple things in life
- Simple Ways to save money
- Is cycling cheaper than driving in the UK?
- Investing in the stock market and building wealth
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