Loaded question. A couple of questions to you, just because a person spends, does that make them a wealthy person? What is wealthy to you? Is it an income level? Materialistic status? Does debt = wealth?
Many people spend outside of their means. I mean many! We work hard, make a little bit of money to some and a lot of money to others. We spend a lot. My daughter is involved in every activity she can get into. Are we wealthy in my view? No, we are hard working and my husband likes to spend, I like to save.
So I get a new car every couple of years. To some this makes me look a bit spoiled/wealthy, whatever you want to call it. Currently, it is a Dodge. To some this makes me look average. To me, based on my upbringing and ways, it is spoiled. Remember, my husband is the spender. In any event, it is not a Mercedes. Could I get a Mercedes and keep it for a longer period of time as opposed to a new car every couple of years, no, it is not affordable. In the long term, the payment would be much higher and and not affordable. I would have to give something up and it is not worth it to me, for the sake of a brand. For some it is a must.
So you ask about the bragging, I take it that you know about the remodels because they are telling you about their tile choice and not complaining about the mess. Maybe a dream kitchen is necessary for them because they entertain in their home as opposed to going out.
Unless you get into their personal business, which I don't suggest, you will never know the situation. Maybe they had to save everything they had to do the remodel. Maybe they gave up their vacation last summer and decided to remodel. Maybe they are up to their eyeballs with debt.
Everyone is different as well as their needs and desires. In our family, we have what we need and rarely splurge on over the top things, but it depends on who you ask.