Long term versus short term purchases

  1. So, while trying to decide on whether or not my husband was insane when he bought that Jimmy Choo bag, I decided to start thinking like he does. He's a PhD from the Wharton school and is an economist, so... I trust his judgement, and THINKING how he does with money seems to work.

    Anyway, it all depends on the individual person to determine whether or not bags should be considered long term investments or not. A person would have to decide BEFOREHAND (and stick to it) how long they would use the bag and how often.

    If you KNOW you like to change bags a lot, and you know that you want to go with the trends, then it's probably best to buy only on sale and resell while the bag is still "hot", or buy knock-offs to save some $$$, or just ACCEPT the fact, that this hobby is costing you a lot of money and save for it. This hobby costs money, but you love it and it's fun... just always budget for it.

    For instance, if you decide to own one bag per season costing on average $500 a bag, that's 4 bags total for $2000. And if you know your habits and know you'll want a new bag each season EVEN if your old bag is still in great condition, that's $2000 a year, every year you are setting aside for owning a trendy bag for the season.

    However, if you know that if you got just TWO DREAM bags at $2000 each to last for say 5 years (more than that is hard to wrap my head around right now), and bought one for spring/summer and one for fall/winter. That's $4000 for two bags, but only $800 a year overall.

    So, in the long run, IF (big IF) you stick to the "goal" of not getting another new bag for 5 years, the two bags a year are MUCH, MUCH cheaper and you might love them even more. You would still need to save for them and not pay interest on the purchases to make it a true value though.

    Of course, the true trick to this is to know yourself... WOULD yuou stay away from purchasing other bags? I know for me, the answer is yes. I look at my past habits (besides baby bags) and I use bags until they die - 2 to 3 years and I curse the broken strap, or the stiff shape. For my good friend? NO WAY could she stick to only two bags for every day for FIVE YEARS!!!! She would be so depressed! :yes:

    I already have several bags that I know are here until they die and some will die sooner than others because of their design, but guess what, those are the cheapos too!I feel NO NEED to get a new backpack or beach bag every year. I'm HOPING I'll feel the same with a high quality evening bag and every day purse too!!!

    I'm just not very girly, girly... I never style my hair (have have long hair I pull back), I never wear lipstick (hate how it feels on my lips). Hate teh colors pink and purple. Hate girly clothes, etc. That said, I'm not butch and very feminine, but so not a fashionista! But... I like to shop! That's the pitfall for me!:girlsigh:
     
  2. I can identify.

    First I went through a whirlwind of buying just about anything that caught my eye. After awhile the bags piled up and I wasn't satisfied with them so many have been sold.

    Now, while I may spend more on a bag, I seem much happier with a higher quality bag and leave it at that.

    For me, 2-4 higher quality bags a year would work out fine.
     
  3. oops! double post!
     
  4. The numbers totally make sense, but I cannot IMAGINE going 5 years without buying a bag! My needs/wants/preferences could change too much in those years to buy really expensive bags to last that long.

    But I also expect my bags to last for years, so eventually I will just have too many bags:shrugs: But I think I'm ok with that prospect:smile:
     
  5. I agree! I believe I will collect some classics that will stay in style forever, but I don't like looking at the same purse for a year running. I just have to face the fact that I am hooked on purses now, and budget for it.
     
  6. ohhh gosh...when i saw the title of this post, my heart SANK! i am so bad at this and always buy short term, like a gorgeous, but way too trendy motorcycle style leather jacket two days ago.

    sigh



    this is why i'll never own a balenciaga city. :crybaby:
     
  7. Goodness, not trying to make anyone feel bad! And, I pulled 5 years out of my head. Really, if you buy two $2000 bags (and nothing more - and pay in cash/pay off credit card that month) instead of 4 $500 bags, you just need to use them exclusively for 2 years to get to the same "level - $2000 a year on bags - which are just examples, not "ideas of how to behave".
     
  8. My budget for bags is considerably smaller, I recently broke out the big bucks and spent all of $270 on a Cole Haan. But I find myself walking away from the $30 and $50 'bargain' bags that I know I will get bored of after a month, and look worn after a while, and walking towards the bags that are increasingly more expensive but that I know I will love looking at still in 4 or 5 years. The other problem I have is that I can't let go of the ones I don't use anymore, even the ones I hate! They are in a box gathering dust, because I can't imagine anyone wanting to pay money for them. But I can't put them in the trash either!
     
  9. Cute. My only suggestion to this theory is that you are not accounting for the time value of money. A dollar today is worth more than one tommorow because of the interest rate you could earn. So in theory, buying 4 bags yearly is the better deal.
     
  10. Unless you are doing some risky investments, interest on your dollar is pretty low, but true, sort of. Also, you have to take into account the time and money you put into selecting FOUR bags versus just two... Is there a difference or not? Hard to tell!
     
  11. yeah, i thought something like that too.
    i think an expensive staple bag that costs 2000$ but u use it almost every single day like say 200 days a year, it's like a 10$ a day!
    but a compromised bag that look like the bag u want but just because it only cost u 200$ and u ended up only wearing for 2 or 3 times in that year because it was just a compromise bag, it's like 100$ a day!
     
  12. Hmmm.... methinks this could be used as an "excuse" for me to get some H purses.... :tup:
     
  13. Yep, exactly right! I know a couple of times I really wanted a diaper bag, but I couldn't find it at the price I wanted, so I tried other things... Well, I didn't fall in love with that bag, so I ended up selling.

    Heck, even currently, I really wanted a specific style of the Rafe Kate bag in black leather, but no one was giving it up, none were available, so I ended up getting a different style Rafe Kate. I have used it TWO TIMES and NOW the style I want has appeared for sale, but no one wants to buy (on a diaperbag forum) my other style Rafe Kate.... even though I dropped the price $100 on an already super reduced price bag... I should have held out and NOT gotten the "compromise bag" because it's costing me a LOT more at this point!
     
  14. Berryblondeboys make a great point that it's important (necesary?) to know yourself and your spending habits when it comes to this lil hobby of ours! But Babyjolo, you know what I do with my old bags (even the ones that are higher end and I could probably get some $ for because they're still in almost new condition)? I give them away - it saves me the trouble of having to try to sell them and it makes me feel good to know the bag is getting a better home. I give them to my friends, relatives, housekeeper, Salvation Army, etc. One woman's junk is another woman's treasure! And in the end, I have more space in my closet for new purchases!! :tup:

     
  15. I'm the same way. I give some bags to my sister or Mom, and the rest to my teenage niece, who keeps those she wants, then sells the rest for spending money. Last year, my old bags paid for her school band trip to Disney World. :wtf: I could sell the bags myself, of course, but I have yet to buy a bag with an eye to reselling it. Call me old-fashioned, but I remember a world before eBay.

    I do hold to the true cost (TC) equals purchase price (PP) divided by times carried (C) philosophy. even though my sis and I recently did a comparison of our purchases over five years that proved she came out ahead money-wise buying cheaper bags, and more of them, than I did buying the high-end ones. I still think the principle applies on a per bag basis, because all of my bags outlasted hers by years. It's all about how one chooses to embrace their inner bag-ho.