He was basically saying that one's perspective on what is "real money" tends to change over time, and that in the ordinary span of working years, one's spending habits tend to keep pace with (or exceed) pay increases.
Agreed. I now make more money than I ever did, but I also spend almost all of it. My annual spending for computers/electronics is now over $30K per year. Last year I spent about $15K on Lego toys. I'm such a spendthrift.