When people think about "living with less," visions of cramped living quarters and hipster couples espousing the virtues of straw-based plumbing may spring to mind. Condensing your belongings to fit into less than 250 square feet isn't for everyone; the financial freedom associated with tiny living, however, definitely has universal appeal.

Even if you don't have plans to downsize, there is wisdom in living with less stuff. According to recent statistics, the average household has more than $130,000 in debt, $15,000 of which is on credit cards. What's more, consumers are spending 9 percent of their household income on interest, to the tune of nearly $6,700 each year. It's obvious we can't afford the stuff we insist on accumulating.

[See: How to Live on $13,000 a Year.]

Still, escaping the siren song of the American dream is no small feat. "There are a lot of contributing factors to why and how we spend, from personality to life context and necessities," says Dave Herman, director of applied sciences for Payoff, a financial wellness company. Herman asserts that the more you buy, and the more you design your life around spending, the more you associate your lifestyle with the items you own. "The more your thoughts and behaviors are focused around the hedonic experience of the immediate gratification," he continues, "the less you'll focus on the long term, such a saving $100 dollars every time you get paid."

For some, reducing discretionary spending too severely can have the opposite effect, much like going on too-strict a diet can lead to overindulging. "The great challenge in living with less is how to do it without going into an emotional slump or cutting out all the good things in life," says Michael Minter, author of "I-Plan," and financial advisor and managing partner of Mintco Financial in Tampa, Florida.

Like most things, learning to live with less (and actually enjoying it) is all about balance. Plus, it can result in the following financial benefits.

[See: 10 Fun, Frugal Ways to Spend Your Free Time.]

1. Increased Financial Security

Financial solvency occurs when your assets exceed your liabilities. For those of us with consumer debt, our liabilities are exceeded (and assets depleted) every time we swipe our credit cards. By owning less, and further removing the desire to own more, consumers can make significant strides toward financial security and solvency.

"I routinely discuss with my clients the benefits of living with less 'stuff' because incorporating this strategy is integral to reaching your short- and long-term financial goals," says Jamin Armstead, owner and financial advisor for J. Dishon Financial LLC in Surprise, Arizona. Indeed, when you spend less money on stuff, you have more money to put toward debt and savings goals. More money also means less stress when unexpected events occur, like job loss, medical expenses or family emergencies.

"I stopped wasting money after having reduced income, and it has taught me well," says AJ Saleem, owner of startup tutoring company Suprex Learning in Houston, Texas. Saleem had little savings when he was laid off from his first job at an IT company, and that experience contributes to his current focus on living with less. "Now, I am not worried about losing money because I know I have a good cushion for the unknown."

2. Better Retirement Prospects

We all know we should be squirreling away funds for our future, but a recent survey by investment firm Franklin Templeton found that 41 percent of American adults are not yet saving for retirement. Unsurprisingly, 70 percent of those surveyed feel stressed when thinking about retirement savings.

"Buying less items is obviously going to increase discretionary money, leaving more to save and invest," Armstead says. And having more money available for retirement contributions will certainly help reduce the anxiety associated with saving for the future.

For some, spending less on things not only offers better retirement prospects but also the potential for early retirement. Chris Durheim, a minimalist and personal finance blogger at KeepThrifty.com, says living with less has inspired him and his wife to put extra payments toward their mortgage. "Now that we've got so much less stuff, we recognize how much extra square footage we have!" Once the mortgage is paid, Durheim and his wife plan to remodel and sell their existing home. "After we downsize, we'll be putting more toward retirement savings with a goal of financial independence," he says.

[See: 9 Scary Things Consumers Do With Their Money.]

3. Mindful Spending on What Matters Most

The freedom to spend money on what's most important is a big benefit to living with less. While specific priorities vary between individual consumers, experiences are increasingly valued over tangible goods. According to TheStreet.com, there was a 2.7 percent "annualized jump in consumer spending on services" during the first three months of 2016, "which includes discretionary spending like eating out and travel." This is compared to the 1.6 percent drop in consumer spending on durable goods.

Shifting your spending toward memorable experiences is arguably a better use of your dollars. "It is unlikely that we'll tell our grandchildren that really, that plasma TV or iPhone was the defining moment of our lives," Minter says. "When I ask older people about the things they are most proud about in life, I've never once heard anyone boast about something they purchased."

Stefanie Parks, founder of travel blog TheStaveDiaries.com, agrees. Three years ago, Parks and her husband had high-powered jobs in New York City and a hefty $3,000-per-month mortgage. "In light of our long hours, we often found ourselves splurging on unnecessary items as a means of finding happiness," she admits. The couple's true desire was to travel, so they eventually ditched their jobs, sold their belongings and embarked on a three-month trip around the world.

Now, Parks and her husband live in Bangkok where they teach English and vacation for months at a time. "We've learned that you can either buy high-priced material possessions which require you to work endless hours in order to afford them, or you can scale back your life and have far more time to enjoy its real pleasures."

Kendal Perez is a spokeswoman for CouponSherpa.com, a popular source for online, in-store and mobile coupons. She also blogs at Hassle-Free Savings and enjoys yoga, decluttering, craft brew and obsessing over her dogs.