On the authority of Abu al-’Abbas Sahl bin Sa’ad as-Sa’idee (may Allah be pleased with him) who said:
A man came to the Prophet (peace and blessings of Allah be upon him) and said, “O Messenger of Allah, direct me to an act which, if I do it, [will cause] Allah to love me and the people to love me.” So he (peace and blessings of Allah be upon him) said, “Renounce the world (i.e. give-up or control your worldly desires) and Allah will love you, and renounce what people possess (i.e. keep off people’s property) and people will love you.” A hasan hadith related by Ibn Majah and others with good chains of authorities.
Note, though, that the best way to practice Islam is by taking the middle road (i.e. moderation in all things). Islam does not teach us to totally abstain from the mundane things and give up our worldly desires. Humans were created by Allah (SWT) to be naturally inclined to these things and so total abandonment of the same would mean going beyond our nature. As such, the first ‘command’ in the hadith (i.e. renounce the world), only asks us to control our worldly desires and give up anything that a Muslim can probably do without or which could be harmful to his/her life and religion.