Obviously, this doesn't need to mean spending 5k on the biggest TV, and doesn't mean outstretching yourself on a huge mortgage for a McMansion. But, if you save a little less and tactically spend on things that will make you happier I think that is definitely worth it. This isn't a huge defense of "stuff," but I think it's also okay to lose some wealth to gain happiness. I personally like spending money on travel/experiences. There was a lifehacker article about that yielding increased happiness.
Link: http://lifehacker.com/5608980/spend-on-experiences-instead-o...