A recent article posted at TheAtlantic.com laments the findings of interviews and surveys that show that an increasing number of Americans, particularly young Americans, are more concerned with hanging on to what they have than moving up in the world, and are also more interested in becoming debt-free.
Clearly this is a reflection of the stagnating economy that we’ve been dealing with for many years now. Young people in particular are overloaded with debt, especially student loan debt, which keeps them tethered to whatever job they might have and limits their ability to buy a car or house.
One thing missing from the article, however, is that many of these young people saw their parents overloaded with stuff, and the debt that comes from buying more stuff than you can afford. They grew up watching their parents buy houses with three-car garages when they only had two cars, just so there was more room to store their stuff. They watched them clean around all their stuff and lose spare rooms to all their stuff. And of course in extreme cases they saw them hoarding stuff.
The real theme I see in this article is that people want freedom. They want to be free of debt, and they don’t want to become loaded down with stuff they have to pay for, for years to come.
They also want affordable housing, but not necessarily impressive housing. Note the survey reference to owning a nice home. In recent years, “nice” meant “bigger and more impressive than your friends’ homes.” Given the survey and interview responses, perhaps “nice” can go back to meaning “affordable and comfortable.”
The sad tone of the article could use a little optimism. The fact is that downsizing your lifestyle can be freeing. Moving to a smaller place means you spend less time caring for your home and more time doing things you’d rather be doing. Moving to a more affordable place means improving your financial bottom line, and maybe even helping you become debt-free.
Yes, it can be painful to go through a downsizing of the American Dream. It sure hurt when my family was forced to go through it. But it only hurts for a little while because the freedom you gain feels so good. Eight years on from our involuntary downsizing, we are thriving, enjoying debt-free life in a small, nice home.