Hmm. Well I think we have a pretty good standard of living. It isn't often we look at something we'd really love to have/do and say "totally out of our price range". We'd probably like to get a slightly better car when the old banger fails than we will choose to afford, but I think that's about it. But that's choosing not to aford it, rather than we really really can't raise that sort of money.
I suppose we don't have hugely expensive tastes, don't do foreign holidays, don't have to have everything up to the minute new, every gadget around etc.
We've 3 dc (13, 10 and 6, no not babies) and income is a bit less than that, before income tax etc. is removed We also live in the south east, which is probably one of the most expensive places to live outside London.