Birkenomics

  1. Ok, so this is a touchy subject, and maybe no one will respond, but here goes: the question is how much are you willing to finance your H purchases (a combo of Birkin and economics = Birkenomics)? What I mean is, if you see a bag you are dying to own are you willing to put it on a credit card knowing that you won't be able to pay the card off in full at the end of the month? On the one hand, paying by credit card is a recipe for paying way too much in interest rates etc. On the other, how often does a dream bag make itself available?

    I haven't done this yet, but if a perfect Birkin appeared I'd have to because at the moment while I have savings (real savings not just 401(k)) most of it is currently invested and so there's not enough liquid cash available. I earn a good 6 figure income, hubby earns a good living, we have no children to support etc. so there's not a lot of risking in putting a purchase on a card knowing it would take a few months to pay in full, but I'm not crazy about the idea. Yet I'm also not crazy about passing up a great Birkin. (This hasn't happened-- no great Birkin has made itself known (:crybaby:) -- but a girl has to think ahead, right?) :shrugs:

    So tPFers- what would you do?

    TV
     
  2. TV, I'm not much help, as my credit card would get me a Kelly (around $10,000 AUD) and not a Birkin....the joint AMEX between DH & I would have to pay for the Birkin (and DH's PA always makes sure this card is paid in full), but I couldn't whack a Birkin on there without running it past him first, and neither would I (just the way DH & I are - I can charge to my hearts' content on my card, but NOT on the unlimited AMEX!!!....dammit!).

    Having said that (and by reading this, you prob. already know the answer) I WOULD put a Birkin on the CC, whether I could pay the amount in full or not!!



    Naughty...........:lol:
     
  3. Unless I put MY CC in CREDIT.....but the chances of this happening are laughable!!!!!!!!!!!!!!!!
     
  4. i don't keep that much extra cash around -- doesn't earn enough. so it's a question of whether it makes more sense to pay a couple months' interest or liquidate investments. and there's also a need to consider whether the money pulled out of investments will be replaced over those couple months if you elect not to finance on a credit card. i tend not to, so even if i would technically be better off pulling money out of a money market account at the broker -- in actuality i may be better off leaving it there and just charging.
     
  5. You've strated a hot topic, hon...there are 9 people reading this thread!!
     
  6. i would put in on cc... if it's what i want at the price i am willing to pay, then so be it...
     
  7. Yes I would...but then again...I fall in love with bags a lot and haven't been the most responsible about getting them! Of course, that's the OLD shoes319...the new one...well she can't anymore because I'm now responsible and have a son going to college next year so my buying days are done on the big things anyway! Boo hoo!!! Maybe one day ds will buy me one though!!!
     
  8. I'd have to consult DH. I have a set budget for my personal expenses every year--which I try not to exceed :graucho: , but if an H bag came along that was the end all and be all, and it was still reasonable (i.e., not an exotic), and I had exceeded my budget-- I personally would do it in a heartbeat provided there were no other extenuating circumstances (family member in economic trouble, lack of savings, etc.) DH doesn't like to touch investments or savings, but if it was something he knew was a one-shot deal, he'd probably make an exception.

    If it really set us back economically, then I guess I'd try and be a big girl about it. I'd have mega-guilt otherwise and wouldn't enjoy carrying the bag.
     
  9. TV,
    You have started a very sensitive topic and I am not sure if you are prepared for the the answers; good, bad & ugly. I hope you will also not find some of my comments preachy. And please forgive me, if you do.

    I used to work as a management consultant in the financial services industry before I became a stay-at-home mum. The single one message I want to say is that, please do not be lured into credit card spending, if the intent or ability is not by the next payment date. The consumer behaviour for rolling over credit spirals, and anyone who starts it will find that they can no longer stop. The typical case is where a person has a few credit cards and use them to get cash advances to pay for a huge purchase, and when the bills come, she pays just the minimum payment to get by. She will be slave to her credit card bills for a very very long time, and chances are, she will charge some more to it even before the outstanding amount is cleared. And every month when she receives her pay, she gets all nervous because ALL her salary has been mentally ear-marked to pay bills. 100% no savings.

    The first time someone does it, she will find great satisfaction in acquiring that coveted item sooner than later, but this feeling of euphoria will not last long when the next credit card bill comes. And then that feeling turns sour, when every month, you have mind your spending more so than ever, to try pay off that bill. Don't forget that with the interest chargeable on your outstanding bill, all future spendings on the card are also charged with interest, and the interest charged compounds itself.

    I hate to say this but the trends of credit card bankruptcies have escalated, and this is all over the world. Consumerism is the biggest culprit. The interest rates in the US and Europe are much lower. Over here, it is 24% p.a. The effective rate, after outstanding amounts are compounded is much much more.

    If you must buy on credit, it is much cheaper, and safer to apply for a bank overdraft, and use it to pay for your coveted H bag.

    Sorry, to be so preachy. There is no nicer way of saying this other than the truth. Shoot me.
     
  10. Great comments and look forward to more!

    Orchids- I'm struggling with the DH thing because I have my own credit cards (I was 46 when I got married) and pay for them out of my own $$ (DH and I contribute to our joint account to pay our joint expenses, and contribute a fixed amount to savings, but the rest is mine to do with as I please). We're still getting our feet wet, so to speak, because we've been married such a relatively short time- actually two years ago exactly this Sunday :heart: :love: :yahoo:. Since we married I started a new job and I get a bonus every March which is based on a formula so I will know on December 31 exactly how much I'll receive in March. It's estimated to be a goodly amount (about the cost of 4-6 non-exotic Birkins- in Birkinomics everything is measured in Birkin buying power) and I expect a decent tax refund this year also because of the job change which caused me to overwithhold. So I could comfortably just tell myself no problem, I'll pay for it in just a few months without touching savings, and on that basis don't even need to discuss it with DH, but something feels funny about spending $7-10k and not telling one's spouse even if it wouldn't really impact him financially. He'd never stop me but I think he'd think I'd lost my mind to spend that much on a bag. Then again, he'd think $49.99 was too much to spend on a bag. :upsidedown:

    Decisions, decisions!

    TV
     
  11. mrssparkles- I don't think you sound preachy at all- I think you sound peachy for saying it like it is! I welcome this input!
     
  12. Thanks for posting this, as I have been thinking about it a bit lately... I have been thinking of starting to save for a birkin, but when I decide I'm actually going to actively buy one (which I haven't yet done) and the perfect one then comes up, I would absolutely put it on credit. The way I figure it is even if it takes me a few months to pay it off, the perfect birkin is so damned hard to come by (depending what you want) that it may be years before it happens again. I definitely want 35mm & chevre, and I'm 90% sure on the colour (chocolate). After I have said, "Right this is it - I am going to buy a birkin" and this baby came up I would do whatever it takes to get it! :graucho: I can honestly say though that if the exact thing was always available on the shelf (like just about any other brand of bag!) I would definitely wait til I've saved the $$ & not put it on credit.
     

  13. TV---Happy Anniversary!!! :flowers: :yahoo: it's a good thing you're wrestling with. Not to get into marriage/relationship gray areas here, (yikes....can feel myself treading into hot water), but it's not a bad idea to discuss large purchases with one's spouse....if anything, just to ease our conscience and to avoid hiding stuff in the closet! :nuts: If I had continued in my career, I think I'd attempt (probably very weakly if I'm being honest here) to run it by DH. Now if DH doesn't care, then that's great, and we're lucky to have partners that are flexible in that area. I've just seen way too many married couples fight over money, but it seems like you and DH have a set plan that works for you.