In my opinion unnecessary splurging is wrong. But once in a while you can reward yourself for maintaining a frugal lifestyle and saving money. After all, you may have a better financial situation compared to may of us here! There's nothing wrong in going out for a dinner with your friends and sharing a bottle of wine or buying any exotic products once in a while. You should just remember two things – don't make splurging your habit and always maintain an emergency fund, come what may.
I'm not sure I completely agree with this. How do you distinguish between "unnecessary" and "necessary" splurging? By definition, isn't all "splurging" unnecessary?"
The way I see it, I always try to spend my money based on what I value and the way I prioritize. For instance, I spend a LOT of money each month on my electric bill. Some could see that as splurging. I grew up in a house that was rarely at a comfortable temperature in any season, so while I know I could be more frugal and turn off the AC, it is important to me to be comfortable in my own house. Yes, I could be more frugal with my energy costs, but this is an area in which I prefer to "splurge."
I think there is nothing wrong with splurging as long as the individual is taking care of the necessities (to include savings and retirement) and the splurging is done in a deliberate, thought-out manner.