"Quality of life" and therefore happiness seems to be defined very differently by the early retirement or financial independence people and regular spend-what-they-earn people.

I've been trying to show by example to my new roommates the concepts I live by since one clearly doesn't understand but I didn't get it when I was 20 either.

We were talking about what we'd do when (or if) we find a high paying job. Many know that I haven't actually looked for a job for several years. I've been freelancing for several years. I did poorly when the economy was bad and relatively well in the last and first year. (although compared to most people in the USA, I'm dirt poor in income)

The roommate that just doesn't get my perspective said he'd rent an apartment in an expensive neighborhood and get a nice car when he gets a high paying job.

I commented how I wouldn't do that because I'd just be spending all the extra money I'd be earning (I wouldn't get ahead). He gave me a shocked look and said that I'd be living a better quality of life.  Obviously to him, living alone (or with his partner) in an expensive apartment paying for an expensive car is a better quality of life.   Personally I don't see how quality of life improves by living somewhere expensive. Sure, it might be prettier or closer to work, but is that really a better quality of life?

I have nothing against those things, I just would rather have my future covered and live simply. I still spend too much on food, but very little on everything else. I replied that if you change (increase) your expenses and later lose your job, you'd have no way to keep paying for those things.
He paused and said that it would be better to buy a house. I can agree on that.

What do you think? How do you define quality of life and happiness? Are you happier living in someplace expensive than someplace that is inexpensive? What about long term happiness?  Would you still be happy if you lost that high income and had to move to a small cheap place or live with your family because you didn't have enough savings? Does paying for an expensive car really make you happier than taking public transportation or having an affordable car?