No not at all. Enjoy what you have. One day you may feel like you want something more expensive if not then be happy and make some music.
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Some people can play the bass and the bass can play some people! No!
Is it necessary for you? Doesn't sound like it. Could it be necessary to someone else. Very likely.I'm asking this because I wanted to know if there are any reasons to spend more than what I already have on a bass. (Currently own a Yamaha TRBX 505, was around £550 at the time). What I wanted to get out of it was a modern bass sound which is used widely throughout most types of music (I always see bassists using a Fender P or a J bass on stage), I need a bass which can be gig or even studio worthy. I don't really have the equipment at the moment to push my bass to the limits so I'm not sure whether it's good enough but I'm currently saving for some better gear (I am well aware that things like the quality in amps, are equally or even more important than the instrument itself.) Is there any reason to buy a more expensive bass or am I perfectly fine with what I already have. I am generally looking for a bass which can provide a very professional, solid sound which can be used in genres such as indie rock. This could include anyone from 'The Smiths' to 'King Krule'.
So ultimately, the question is. Am I missing out, and do I need to spend more to get a better or a specific bass in order to fulfil the sounds I'm going after? Or am I perfectly fine with the bass I currently have, provided I have the suitable amps and other gear.
TL;DR : I want to know whether I need to spend more for an instrument provided I already have a very good quality amplifier. Bass I currently own is a Yamaha TRBX505, am I missing out or should I be able to gig or even go to a studio with the bass. I am mainly looking for a sound which would sound good in a professionally recorded song as well as be a very good gigging bass.
(I've been playing for over two years now, but I still have little knowledge on what type of basses or qualities, or even if I need to upgrade my bass. Hence why I am asking here)

And the people who buy them.Of course they are. To the companies that make them.
Excellent topic. This hasn't been argued in at least a week.
You don't want, or can't afford an expensive bass? Don't buy one; problem solved! Quit passing judgment on those that DO want/need one.
Not uppity. It's fun to drive a Ferrari. Or so I'm told. I also think it's fun to flog an old VW just as hard as you can. The most expensive and the cheapest all have their place.Okay - this is slightly uppity - but, as I've said before, it's not about what you use - but about who you are.
Expensive basses are not a necessity of life, but they make it a lot more enjoyable. I love paying my nice basses and get a thrill everytime I strap one on.
There are lots of analogies we could use here - but do you wear the cheapest clothes or drive the cheapest car? I'm not well-heeled, but I don't.
I'm not extravagant and I make certain that I get my money's worth out of whatever I buy.
Get something that makes playing more enjoyable and that you really enjoy. Life is too short to do otherwise.
Sir Paul McCartney purchased his Hofner because it was cheap. I heard he did OK with it.