I have observed that if you increase your needs, the new 'increased need state' becomes your new norm after a while. For example, if you didn't have car before but then you purchase it, use it regularly and then when you don't have it anymore — you'll miss your car, you'll feel like you can't live without it even though you managed to live without it before.
Do you agree with this observation? Would you agree that it's better to not increase your needs in first place?
Not everything needs to be treated equally, because in the example you gave, I've experienced this. I once owned my dream car, but economic factors forced me to sell it as a way to minimize excessive spending. I can still live comfortably, even though I often think about that car because it was my dream car. If someone's economy is unstable, selling some potentially wasteful items is actually much better, so they can balance their expenses and income.
Many people pursue a lifestyle and don't consider adjusting their income or expenses. In situations like this, it becomes increasingly difficult for people to plan for financial freedom, ultimately leading to much worse economic problems.