Americans finding happiness in simpler living

Recession = cultural shift

Vilas Bhuchar, Aug 11, 10.

Many Americans, having had to cut down or reassess their spending habits with the country’s economic slowdown, are finding more happiness in simpler living - and the change may be permanent, according to the New York Times.

Tammy Strobel and her husband, Logan Smith, are one such couple. By moving to a smaller apartment and ridding themselves of their two cars, excess clothes, and even their television, the pair are able to live off Ms. Strobel’s yearly income of $24,000 and have even been able to pay off $30,000 in debt, notes the story, to which Tammy adds:

“The idea that you need to go bigger to be happy is false,” she says. “I really believe that the acquisition of material goods doesn’t bring about happiness.”

Research shows that people are finding more happiness spending their money on experiences rather than material objects:

According to retailers and analysts, consumers have gravitated more toward experiences than possessions over the last couple of years, opting to use their extra cash for nights at home with family, watching movies and playing games — or for “staycations” in the backyard. Many retailing professionals think this is not a fad, but rather “the new normal.”

Current research suggests that, unlike consumption of material goods, spending on leisure and services typically strengthens social bonds, which in turn helps amplify happiness. (Academics are already in broad agreement that there is a strong correlation between the quality of people’s relationships and their happiness; hence, anything that promotes stronger social bonds has a good chance of making us feel all warm and fuzzy.)

Furthermore, changes in American spending habits may be permanent, notes the story:

“I think many of these changes are permanent changes,” says Jennifer Black, president of the retailing research company Jennifer Black & Associates and a member of the Governor’s Council of Economic Advisors in Oregon. “I think people are realizing they don’t need what they had. They’re more interested in creating memories.”

The Agitator, who blogs about fundraising and advocacy strategies, excerpts this:

The main insights of this article are:
That a permanent downsizing of consumer appetites might be occurring; and,
That today’s consumers are far more interested in buying “experiences” than “things” or “possessions.”

(Photo credit: jovike)