Since you have enough money to even ask the question about spending more money on something not entirely necessary, you are already past the two lowest levels of Maslow's Hierarchy of Needs.
So am I, and I buy a new bike about every 10 years. I'm really not buying a new bike for the Love and Belonging, as I don't even wear bike "kit" and don't do that many group rides, let alone race.
If I'm honest, the Esteem level does come into play - going from my 1996 steel Trek 520 to my 2017 carbon Trek Domane definitely hit the "self-esteem, strength and freedom" buttons even if I really don't think "respect" or "status" came into play.
For that one, I made a deal with myself: lose 20 pounds and spend on a bike that weighed 10 lbs less than the 520. I wanted to climb hills faster but I was also 40 lbs overweight! So, I felt I justified this "need" with "being the best I could be" with lowering overall bike/rider weight, not just bike weight!
Earlier buy new bike decisions were easy - replacing a 1978 Schwinn Continental with a 1992 Schwinn hybrid bike to pull my daughter in a trailer on rail trails, and buying the Trek 520 because I got into touring and wanted drop bars, rack braze-ons, etc. I could have done all those things on that 1978 Scwhinn, but not as well.
An anecdote:
My wife has a friend who would literally rather eat at a cheap restaurant that served horrible food than an average-priced restaurant that served above average meals. Her "self actualization" needs are actually all about being able to feel like she saved money, or at least spent less.
She and my wife would bike together, my wife riding my son's old monster Specialized Hard Rock mountain bike and her friend riding some old department store bike with crappy components that were constantly going out of adjustment, etc. For her birthday one year I bought my wife a decent (not high end, but not low end) Specialized aluminum frame bike with decent components, etc.
After a few rides together, including my wife's friend trying out my wife's new bike, the friend showed up with a new bike - the same one as my wife! She said "after I bought this bike I literally could not sleep last night, I felt so bad about spending $450 on a bicycle. " She called my wife the next day and said "I enjoyed our ride on our bikes so much, that night I slept like a baby..."
All this was really just a long way of repeating the earlier poster's advice to "figure out which makes you happier, and do that."
I'd add: if option A and option B seem about equal and you can't decide, just flip a coin and do whichever wins! But sometimes a bit more thinking about what your real "needs" are can put distance between the two options.