I'm just your typical 18 year old university student and as far as I am concerned, a great pair of jeans and a good winter coat (I'm Scottish, these are year round items!! lol!) should be the only indulgence worth taking. I've got a few pairs of Seven jeans (fit fantastic!) and I think those are worth paying for, opposed to when I was happy enough with the odd pair from Topshop. The coats are pretty self explanitory because in this case it just proves that designer can and does equal quality.
I've only got three designer handbags. I have a vintage Chanel tote, a chanel 2.55 and a MJ patchwork stam. The latter two were bought half by me and half by my parents (I flat out refused to allow my parents to spend their money on some superficial object for me when they could spend it on themselves!); and the vintage by myself (sufice to say I didn't have money to go out for about a month after it!).
Everything else i own is either from Topshop, Urban Outfitters, Miss Selfridge, Zara etc. I don't see the need to spend £400 on a top I can get in a similar cut/style from topshop for £35. Especially when, since my taste is so fleeting, I will be bored of it within a year.
As far as I am concerned, looking "chic" has nothing to do with the budget you have or how many designer pieces sit in your wardrobe. It's about having a good enough eye to see which of the cheap shoes from the cheap shops will make you look cheap (as someone put it earlier!). Right this very second I am sitting in a pair of jeans, a Marks and Spencers white vest and a £16 caridgan I picked up on a whim today in New Look (!!!) and I think I look pretty good.