It's all about attitude. I don't consider myself to be anywhere near the lower end, but I am "skipping our lattes, nights on the town, cable television, cell phones*, cigarettes, alcohol, new cars". Thing is, I am not sacrificing at all by skipping those things. Not having them, and not having to pay for them, improves my quality of life.
I do spend money on what it calls "nice-to-have-but not-strictly-necessary expenses", but they're things I want and enjoy, not stuff society says I ought to have.
*Ok, I do have a pay-as-you-go cell phone now, but only because it's cheaper than a land line.