The traditional "wisdom" when you earned more money was to buy a bigger house, because you could write off the mortgage interest on your taxes. My first house was a cozy 880 sq feet. I'd rather keep 2/3 of that mortgage money, after taxes.
I'm retired now (and have been since my 40s), living in a fully paid for home, driving a fully paid off car. We all prioritize our spending, and then have to live with the results of that spending.