I think most of you old timers know I like my guitars like I like my cars and trucks. Cheap and easy to maintain.
Ideally, I get to keep some pretty reasonably priced examples. BUT, I also splurged a few times. When times have gotten tight, the more expensive guitars, drums, basses, amps sometimes wind up on the for sale chopping block.
Funny and sad thing is I truly bet that if I had not sold my 1979 Black LP STD way back in 1991 for like $425, I might have never bought and sold the over 20 guitars and basses that have passed through my hands over the years. I might have truly only owned that LP and maybe a Strat and a 335. In some ways, my current variety of guitars has come about from my longing to have my very first guitar back again.
Having said all that, I am most comfortable at my income level, to spend 0-$300 on a guitar. Once I get up past $350, I am splurging on items I could be spending my cash on " better" things such as dental work, building a garage, tools and equipment, Tires, and all manner of necessities.
In addition, I still don't regret having spent between $350 and $750 to get my main guitars and the hard cases they either came with or needed to buy separately.
If and only if a realllllllly unique or rare guitar comes along, I will and have been known to be weak and spend $700-$2k US on one.
In my case, it is not a brand thing either. I would easily buy a cheap or expensive Ibanez, LTD, Godin etc, if the $$$$ had enough reasons to part with them for the acquisition. For example, as I searched for an ES 175, ES 135 type, guitar, I might have bought an Ibby, Yammy, Gretsch, etc over a Gib $3k-$6k equivialent. Almost got an IBBY for $1300 ish, but found my ES 135 cheaper. So I went for the 135.