I'm happily unemployed for the moment and hubby recently landed a job that allows us to pay our bills, save, and buy what we want for the most part (he likes video games, I like bags). We don't use credit cards for anything except gas for our cars (they get paid off in full every month) and we have recently become debt free after paying off both of our cars last year.
Since I stick mostly to contemporary designers, my bags aren't crazy expensive to begin with, and on top of that I tend to buy pre-loved or deeply discounted bags at outlets or department stores, so my annual expenditure amounts to maybe $500, and that's a high estimate. I always pay in cash, and have never spent more than $200 on a single bag. I grew up in a paycheck-to-paycheck household and I still find it very difficult to buy what I would consider to be luxury/frivolous items and often feel guilty for it, but I'm getting better!