I am in debt. I have a mortgage that I can afford for a house that's perfectly fine for two people and two dogs. I bought a four-cylinder truck and financed around $13,800...something reliable that's good on gas and can haul around my crap. I have a small amount of student loan debt. It's manageable.
I am an elementary school art teacher. I'm not rich, but I make a decent salary and live comfortably within my means. I get benefits, insurance, and retirement.
I can't spend frivolously, but I don't really need to...the materials I use aren't usually very expensive.