The balance can be achieved by controlling our lust and greed but at the same time fulfill our basic needs and necessities. Of course, what is basic for me may not be for someone else. Every individual is a judge of their needs and desires and what is considered "more than necessary". Bottom line, we have to regulate our material life and not imitate "renunciation". I learnt this the hard way but at least I am learning.
Srila Prabhupada in his purport explains this nicely. I was reading this purport just today and reminded my own material needs and wants and how it is also necessary for spiritual progress. At the end, if we dovetail our material desires in the service of Krishna, we can be much more happier and fulfilled versus absolute denial.
Please read the purport.
For spiritual advancement, one should be materially satisfied, for if one is not materially satisfied, his greed for material development will result in the frustration of his spiritual advancement. There are two things that nullify all good qualities. One is poverty. Daridra-doṣo guṇa-rāśi-nāśī. If one is poverty-stricken, all his good qualities become null and void. Similarly, if one becomes too greedy, his good qualifications are lost. Therefore the adjustment is that one should not be poverty-stricken, but one must try to be fully satisfied with the bare necessities of life and not be greedy. For a devotee to be satisfied with the bare necessities is therefore the best advice for spiritual advancement.
Purport by Srila Prabhupada SB - 7.15.21
In conclusion, to reiterate, one should dabble with material desires only to the degree to fulfill one's bare necessities, otherwise not.