Voluntary Simplicity

M.P. Dunleavey

Originally published by The New York Times, June 16, 2007

Remember the fable about the ant and the grasshopper? The ant works hard all summer, socking away provisions for the winter; the grasshopper frolics away each day. The ant warns the grasshopper that he’s being hedonistic and short-sighted. The grasshopper ignores the ant, and continues on his merry way — only to perish when winter sets in.

It’s a rather stern lesson about financial prudence, but there is a reason this tale has survived through the ages — and still preoccupies many researchers who study the eccentricities of human economic behavior. Why do the grasshoppers of the world have such a hard time emulating the ants?

The rewards of the ant’s strategy are obvious: by working hard, planning ahead and saving your resources, you end up healthy, wealthy and warm. The pleasures of the grasshopper’s life are short-lived — and ultimately lead to great stress and suffering (if not a dire end).

Yet economic research has demonstrated that most people find it hard to resist the siren song of “seize the day and spend what you have now” — even though a lifestyle based on constant consumption doesn’t enhance anyone’s long-term store of happiness and often puts people on shaky financial ground.

This conundrum also bedevils those who work in the field of personal finance. Why do millions of Americans resist saving for their retirements? Why do so many carry thousands of dollars in credit card debt?

The standard advice for those caught on the treadmill of “getting and spending” could come straight from the mouth of the ant: material kicks don’t pay off in the end, so mend your ways, plan ahead and financial prudence eventually will be its own reward. But this sort of finger-wagging makes few converts in the grasshopper world.

A more compelling approach may be to focus more on what makes you happier — because investing in your own well-being and quality of life may turn out to be more prudent and more profitable than you thought.

Tim Kasser, an associate professor of psychology at Knox College in Galesburg, Ill., studied 200 people who embraced Voluntary Simplicity, a movement focused “less on materialistic values — like wanting money and possessions and status — and more on what we called intrinsic values or goals,” Professor Kasser said. The three main intrinsic values were being connected to family and friends, exploring one’s interests or skills and “making the world a better place,” he said.

He conducted the study in 2005 with Kirk Brown, an assistant professor of psychology at Virginia Commonwealth University in Richmond. The researchers compared the attitudes and behaviors of this group with a matched sample of 200 mainstream Americans.

Although the mainstream group’s income was much higher, an average of about $41,000 a year compared with $26,000 for those aiming to live more simply, “we found the people in the Voluntary Simplicity group were much happier and more satisfied with life,” Professor Kasser said.

THAT doesn’t mean frugal people are happier, said Professor Kasser, adding that research findings on this topic are mixed. But the study found that when people invested more in intrinsic values, like relationships and quality of life, and less in consumption, it seemed to increase their happiness. And, the study suggested, there may be a financial gain to doing so. Those in the simplicity group were far more likely than the control group to say that they were careful about their spending, Professor Kasser said.

Christopher K. Hsee, a professor of behavioral science at the University of Chicago Graduate School of Business, has observed a similar pattern. He points out that when people use their purchases as a semaphore of status, there is “no natural stopping point;” there will always be a bigger house, a fancier car, a more expensive watch to go after.

When it comes to more basic needs, like food or sleep or friendship, most people naturally reach a point of satisfaction. “Consequently, people who value these types of goods may be financially better off,” Professor Hsee said.

As someone who struggles against her own grasshopper nature, wishing she had the foresight and impulse control of the ant, I like the idea that there’s another path to fiscal prudence. Working hard and being practical are ideal skills to have in life, but if those aren’t your bag, investing in a happier way of life may offer the same financial dividend. Too bad the ant didn’t know about that.

M. P. Dunleavey is the author of “Money Can Buy Happiness” (Broadway Books, 2007).

By Ascribe Higher Education News Service

Originally published by Ascribe Higher Education News Service, December 6, 2001

A new trend in consumption may be contributing to declining retail sales, according to University of Arkansas researchers. Graduate student Helene Cherrier has been tracking this trend, called voluntary simplicity, along with marketing faculty Jeff Murray and Norma Mendoza of the Sam M. Walton College of Business.

The researchers presented their findings this week at the International Society for Quality-of-Life Studies Conference in Washington, D.C.

“The trend toward voluntary simplicity has been expanding for more than a decade,” explained Cherrier. “In 1988 voluntary simplifiers were the fastest growing market segment. In addition, recent world events have forced consumers to rethink their buying habits.”

Voluntary simplicity is a conscious choice made at an individual level. Because it is not associated with social movements such as environmentalism or feminism, it has gone largely unnoticed by marketers.

“It is important for marketers to realize that voluntary simplifiers are still consumers,” Cherrier said. “But they are more thoughtful about their purchases. They focus on what is important to them and they resist traditional forms of salesmanship.”

As a movement, voluntary simplicity has been around since the time of Plato. In the United States, it has emerged as a major trend several times. Religion was a key element during the early years of the nation, when groups like the Quakers opposed excessive consumption. During the Civil War, it emerged as a political issue and was promoted by Roosevelt as a public virtue before and during World War II.

Ironically, the trend toward voluntary simplicity has been greatly expanded through the Internet. Online communities and support groups have served to spread the trend among diverse people and cultures. Voluntary simplifiers range from senior citizens who sell their large family home and move into a smaller home in a retirement community to young, mobile professionals who don’t want to be “tied down” to their possessions.

The events of Sept. 11 have had a major impact on consumption and enhanced the trend toward voluntary simplicity. People have become more reflective and more focused on the things that really matter to them, both hallmarks of voluntary simplicity. And this trend is reflected in their purchasing during the holiday season.

Consumers continue to purchase, but they are focusing of different things than they have in past years. This presents both a challenge and an opportunity for retailers, who may need to rethink their marketing strategies.

“While value continues to be important, retailers should focus on the intangibles,” said Mendoza, assistant professor of marketing. “If they emphasize service with the human touch and help consumers find the meaning behind the product or the purchase occasion, they can capitalize on their relationship to the community and to their loyal customers.”

This is not a trend that is likely to disappear after the holiday season, according to Cherrier, because it is a predictable consumer response to difficult and uncertain times. Faced with political uncertainty, security issues, privacy concerns, the explosion of technology and many other complex issues, individuals are focusing on their core values, and their consumption patterns reflect that identity.

“Although we have become accustomed to trivializing it, all consumption is about identity construction,” said Murray, associate professor of marketing. “If you chop this part off in the study of consumer behavior, you may lose the most important part.”