I think that many people have far more than what they actually need. People find it fun to spend money on unneeded luxuries. Now of course this is not always bad. The world would be a vary sad and miserable place if nobody had a few entertainments that they enjoy. Small differences for big prices like a 42 inch TV for $2300, or a 48 inch TV for $3000, just are not worth it for the extra 6 inches, when you could sit a foot closer and have the same result, and save $700.
But just because we can live off of a little garden and a small stream, does not mean we should. I personally think it would be fun to live without some of the many luxuries that we have, but many people are not as equipped as I am.
Things like theatre, TVs, bowling, and sports can be very good for you. But some things like 25 million dollar houses with 3 swimming pools and 4 tennis courts might be a little overdoing it. Purchasing an exercise machine that you see in a magazine, buy it, use it a total of 4 times, then stuff it in your basement and never see it again, is a waste of money. But things like going to a movie every now and then with some friends can, give you many memories and good times.
If you use it, and it gives you some personal gain in a way that makes the money worth it is not unnecessary. If you go to the theatre and have a good time, you have gained something. Happiness!
I do think that things like eating out and going to movies should not be a regular weekly thing. Firstly, it makes the experience far less enjoyable when you dilute it with many more, and it can rack up quite the bill.
Another major thing people spend on that is very unnecessary are nick-nacks. My Great-grandma would fill her house with little things she finds here and there. She was a complete hoarder. She didn’t need 15 different sets of china that she saw at the used-store, bought, used, looked at, and put on a shelf. After a long time of collecting things that you see, even if they only cost a few bucks, it can really add up.
Nick-nacks, are also like alcohol or drugs. A little bit is fine, but after a lot it can start to make an effect. In this case the effect is harm. Especially with things like that, it is easy to get addicted, and not realize how much you are spending.
So it ends up boiling down to this. Ask yourself: Is this unnecessary for you? Is it harmful to you? And is it worth the money for what it brings?