I think it's a matter of spending to your priorities. Shiny furniture and cars are just not that important to me, so I don't worry about paying extra for them. As long as they work I'm fine with them. (Still using my graduate student furniture AND car, actually). Another one I don't care about is shiny top-of-the-line cooking utensils (pots, pans, kitchen-aid mixers, etc.). It always horrifies my guests that my kitchen-ware consists of 3 plates, $1 wal-mart silverware, and that I do most of my cooking with a single, very battered fry pan. My grandmother just sent me money at Christmas because she was horrified by the report she heard from my aunt about the state of my kitchen. I also do a lot of my clothes shopping at thrift stores, and spend the weekends in ragged old jeans that are very old and about to fall apart.
However.
Vacations are important to me, I definitely pay for those. Several flights a year to visit family and/or go on fancy-pants cruises (as in, European river cruises, Caribbean and Mediterranean cruises, etc.). We travel fairly efficiently--the cheap rooms on the cruise ship, no extras (like wine) on board, etc., but I definitely am willing to pay the money to go! I consider that money well spent, too. :-)
When I'm out with my friends, costs are not something I worry about--eating out, drinking, etc. It doesn't happen very often that I go out at all, but when I do I don't stress about it. (Granted, my friends are fairly cheap, so even "going out" is <$50, but still. )
Having a house (instead of living in an apartment) is important to me--I hate sharing walls with strangers. So far I have a 100% success rate of buying a house in new cities that I move into (2 for 2!). I don't even much care that I'll only be in cities for a year or so. I mitigate that by buying starter homes in nice yuppie neighborhoods which are easy to rent/sell, and have never lived in a high COL city (usually the mortgage is cheaper than renting) but the fact remains that I'm buying them because I want to live in them, not primarily because they're intended to be rental properties.
I also pay for a gym membership, because I like going to gym classes with other people and teachers... and sitting in the hot tub. :-) In fact, I picked the gym I picked BECAUSE it has a hot tub. Oftentimes I go to the gym only to sit in the hot tub--if I've had a rough day at work, for example. Ahhh, bliss.
I also enjoy the act of driving. In addition to driving to work (gasp!), every few months I get the yen to go out on a several-hours drive and see the sights. Sometimes just to get out of the city and see the leaves change in the fall. Very un-mustachian, I know. :-) I love it.
The point is to live a life that you enjoy. If you genuinely enjoy things, pay for them. It's just paying for the "status"--something that other people think you should have that you don't care about--that doesn't make sense. For me, the #1 thing that I value is time, so most of my money goes to my retirement savings. However, I have a mental balance of what things I value and where they fall in importance on my mental scale. Top of my list is my family/friends, travel/experiences, and time. I balance my priorities and spending according. For me, it just so happens that retirement (time) happens to be right up there in the top 3.
I have a friend that's done the same mental estimation and came to the conclusion that she likes her job, doesn't really want to retire early, and therefore places a higher priority on "things"--buying a new kitchen, new furniture, new cars, paying for childcare, etc. That's her choice--and it's a good one for her! As long as it's a conscious choice and you're not going into debt, more power to you!