There is probably an area where you don’t mind spending money to get what you consider to be “Luxury”. It might be a nice car, good wine, nice vacations or a big TV. You spend that money because that is something that makes you feel good. You enjoy driving, drinking, traveling or watching it. It doesn’t matter the price of the luxury. If you are poor, a “luxurious” car is different than if you are middle-class, but you can still have your version of “luxury”. The key is to getting joy from that luxury element and appreciate it.
You have a problem when you start not getting luxury because they make you feel good, but because you want all the luxuries in the world, or because you want a better car than your neighbors. It’s a combination of extreme consumerism and keeping up with the Joneses where the object or service itself is not what you are after – You are after owning the object and the associated process of acquisition. You don’t own what you have. What you have owns you. You lose track of what makes you happy, and under the illusion that having is what drives you, you build huge credit card debts and lose yourself.