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People think that their happiness is tied to their material possessions (house, car, money, status etc.). So we seek happiness by chasing these things in the outside world. BUT do we find everlasting happiness there? We do not. Then where should we look? Here is the answer given by Maharshi Ramana:
Sri Ramana Maharshi: If a man thinks that his happiness is due to external causes and his possessions, it is reasonable to conclude that his happiness must increase with the increase of possessions and diminish in proportion to their diminution. Therefore if he is devoid of possessions, his happiness should be nil.
What is the real experience of man? Does it conform to this view?
In deep sleep the man is devoid of possessions, including his own body. Instead of being unhappy he is quite happy. Everyone desires to sleep soundly. The conclusion is that happiness is inherent in man and is not due to external causes. One must realise his Self (soul) in order to open the store of unalloyed happiness.
Source: Talks with Sri Ramana Maharshi
Summary
No doubt a certain degree of material possessions are needed to meet the basic requirements of life, but they are not sufficient to bring everlasting satisfaction and happiness. That can be attained only by reaching our Self, our Soul. Therefore it is better to live simply and not go on amassing enormous amounts of clothes, shoes, houses, jewelry and other possessions. Instead our time would be much better spent in trying to reach our soul.