But the fact is that I like to spend money elsewhere. I would love if it I could live a 'normal' life like my more wealthy siblings/friends, but we would rather have the money to buy the stuff we want and skimp out on other things (clothes, cars, entertainment).

So, I guess the short answer for me is that frugality isn't something I do because I can't spend money on those things, its because I value other things more. One could argue that we do it out of 'necessity,' but mostly we just do it because we don't want to be in debt.

With that said, there is nothing like saying: "That cool car we got? We got it for less than 5k." Or "That Nixon watch I have? $60 on Ebay and it was new."

So maybe it's a little bit of both. When I make more money, I will spend it on things that we want and plan for. There is no use in excessively saving money... but there is a balance to be made.