For a little perspective, I'd have spent a weeks' salary on a bag in the 80s to 90s - from about age 25 to 33. I had about three or four expensive bags then.
I'm over 60 now, still working full time and and on a healthy salary - mortgage, school fees all paid. I wouldn’t spend a £1000 on a handbag now - about £300 is my limit, less on work bags as I work in the quasi public sector nowadays and it would be out of place. If I still worked in the City I might be tempted.
I no longer have my previously expensive handbags: a Gucci, a Mulberry (they really were cool in the 80s!), and a Cartier (a gift). They were all so heavily used for so many years that they couldn't have been sold on. On a cost per wear basis I suspect they were better value than the occasional bag I bought for far less and didn't like or the zip broke, etc.
Nowadays I am happy with cheaper bags, usually in the sale. I paid £150 before Christmas for a Ralph Lauren tote that doesn't look very different from the YSL one up thread.