I work from home, and most of what I need is within 10 minutes walk from where I live. If you think driving and parking is tough where you are, try living here in central Tokyo. But I do have a car, a nice BMW 750i, which spends most of its time nestled comfortably in the garage. I got a nice car because I hate driving in Tokyo. On those occasions I get stuck in traffic, at least I am comfortably stuck. Maintenance and repairs are few and far between, I drive so little that a tank of gas can last 6 or more months. I continue to own a car because it remains a ticket to freedom, once you get out of the cities, Japan is a beautiful place to see by car. I also have kids in school, and I find it easier to go to school events, go camping, and take them other places by car.
There are different options when it comes to determining what you can afford. You can adjust your spending to live within your means, or you can increase your means so as to be able to afford more. The latter option is not as hard as many people like to think.