I spend more on things I use a lot.
I pound on this laptop for several hours pretty much every day; I have no problem paying the "Apple tax" for a MacBook Pro; DW's ThinkPad was about a third of the Apple's cost and, based on the quality of the screen and cabinet, is worth just about that. I wouldn't be happy using that machine every day and I suspect I'll still be using this MacBook long after the ThinkPad is a memory. We drink a fair amount of coffee in this house; we spent a fair (but not market-topping) amount of money for our new coffeemaker (Bonavita) and the coffee ain't cheap either. But I drink only coffee or water or whiskey (occasionally), so I think the coffee is worth spending some money on. Besides, I fully expect this machine to last as long as the previous coffeemaker did; somewhere between ten and fifteen years.
Winter tires; we don't buy the cheap ones. We don't buy the most expensive ones (most of the time) either; we probably pay toward the higher end of the range because they're on our cars for five or six months of every year. Dishwasher? It's the most expensive appliance in this house (at least until we start replacing some of the older ones). But it's used every two or three days and I like that I just put dirty dishes in and they come out after a while clean and dry while using less water than I waste waiting for the tap to get hot.
On the other hand, I will cheerfully wear $10 jeans from Target or Fleet Farm or Goodwill. I'm as happy with a $10 bottle of wine as I am with an $80 bottle. If we're traveling, a hotel room that's clean and well-located means more to me than fancy sheets and doormen (or whatever non-gendered term exists for them now); I don't care much about the brand but I do care about the price. And I can put up with a lot for a couple of nights.
I prefer to buy stuff that can be fixed when it breaks. I value performance over appearance. Intuitive design is important. But probably the overriding consideration on how much I'll pay for something is how much I'll regret cheaping out on it as I use it often over the years.