This is very true. When I started work in my 20s, I was making big bucks. I went out and bought the BMW, Mercedes, etc. I spent. Then I started wondering why I wasn't getting ahead. I sold my BMW at a 70% loss (much worse than any stock I've ever owned), downsized to one Mercedes that I had bought for a family of 3. We moved close to the train and I take the train to work or I bike for exercise. My "happiness" did not go down as I owned less stuff, but it actually went up! I was less stressed (no more long commutes, dealing with horrible drivers), I saved so much time taking the public transit (train), I could do work on the train, read, etc. Heck, I pay so much in taxes, I make as well make use of all the services. It's like having a chauffeur drive me to work every day but even better as I don't have to look out the window at idiots trying to butt into my lane. We took our extra money, and invest, and in our 30s, we generate about 50K of dividend income, enough to quit my job.