Wanted to put in another vote for getting back into the painting - I find that if I have some 'other' kind of outlet, then I'm not as concerned with shopping. Don't get me wrong, I still like to come up with outfits and so on, but if I have something else going on, I don't feel like I am always wanting something 'new' on the clothes/fashion front, if you know what I mean.
I think everyone's a little different - as for me, I get very creative with cooking sometimes and I probably spend way too much money on gourmet foods, but the thing is - this other 'hobby'/fascination of mine is not nearly as expensive as clothes are, so even if I go a bit nuts and buy fancy food and ingredients, it's simply not nearly as "dangerous" as veering into expensive clothes can be. If I spend $10 on some Medjool dates or $35 on a fancy bottle of olive oil, it's not quite the same (guilt-wise) as pricier clothing can be.
I suggest shifting the 'high end' luxury shopping to a different area, one that isn't as expensive (ie. in my case, I'll buy expensive food, but this doesn't cause too much stress on the bank account), and I'd suggest still being way into fashion and clothes, but that the eye for higher-end items be shifted to a less-expensive pursuit. I suggest this because there is something very satisfying about being picky and particular about quality/style in at least one area of your life. It's just that when it comes to clothes/fashion/shoes - this can get a bit expensive.
I also really liked the suggestion to get some other YLF'ers in your area to take you shopping to some stores/places that you might not have considered before. That could be a *lot* of fun. Just for the record, The Rack is a great place, and it's partly because it's kind of hard to find things in there, so you end up not buying as much - because the good things aren't as easy to get to. You have to do a lot of looking, but it's still fun - and ultimately, I find that I end up buying less than I would normally. Thing is? I still get that shopping/looking fix, even if I don't buy a single thing or only end up with one or two items that I decide to purchase.
Meanwhile, I don't know anything about painting or watercolours - is this stuff expensive to buy? If not, then this might be the place to shift that 'high end, better quality' eye.
Shift that 'eye' for the good stuff to a less-expensive area of your life.
It'll all work out, I'm sure of it