Interesting topic.

I think I share your thought that it isn't simply a nice watch, car or house.
I acquaint Luxury with the uncompromising pursuit of happiness, which is defined differently for each of us.

I find that for me the luxury of time is the biggest thing I value in life.
The luxury of spending the morning walking with my wife, starting work late, baby sitting my grandchild whenever I am needed, or being able to fly to another state to visit my daugheter, those are luxuries.

I won't lie and say I don't appreciate the special qualities of a finely built vcar, soft leather or a smooth engine. Likewise I appreciate the beauty of a well stocked bank account. However of these things it's time freedom I value the most.

So even if I must work hard long hours, I try to choose when to work them and to arrange them around the things which matter in my life, for those are time I can never buy back.