Bags & shoes vs. 401k/savings

vuittonGirl

vuittonGirl

O.G.
Feb 20, 2006
3,011
8
#1
So i'm a working girl and i was doing my bag budget yesterday and i started thinking. If i wanna buy 2 LVs and 2 pairs of Jimmy Choo per year (that's my limit,) it would cost me at least $3000. With $3000, i can put it in my 401k and the company will match 100% and it could go toward my retirement. I know it's too far in the future, but still. On the other hand, there's always that excuse "you only live once, life is too short, you are not young forever...etc" :oh: to buy the bags.
So what do you ladies think? Please feel free to give your opinions.
 
#2
I am big on saving... I think if you have to choose between putting money in your 401K or shoes, go for the 401K especially because your company matches your input... not only that, but imagine the compound interest that you'll get from that $3000. I'm only 21 but I do have a Roth IRA and I contribute the max each year.

There are so many options for handbags and shoes... definitely not just LV or Choos! There are always sales, too. I've gotten great deals on Jimmy Choos during sales. I also don't mind buying bags from Ebay.

I don't think of retirement as that far off in the future either. My Roth IRA is scheduled to be cashed out when I'm 55. Wahoo, somewhat early retirement! And if I don't need to touch that money because I have a decent 401K, I can pass it down to my grandkids.

I say definitely go for your 401K. I'll bet you can manage to slip in nice things anyway!
 
#3
I agree with Intlset 100%! Put that money in a 401K ASAP, especially if your company matches 100% (mine doesn't match at all, which sucks!). That $3,000 a year will grow and compound and will be a nice sum by the time you retire. Yeah it's a long time off, but ask anyone in their 40s, 50s and 60s, it happens sooner than you'd like!

If you don't want to put it all in right away put in whatever you feel comfortable with until you get up to the 10% max. Purses are fun and all, but saving money is even better.
 
#4
Of course saving money is better. But I also feel we need to live life too. So - put at least half of that in your 401K and get a bag as well!

I contribute 10% to my 401k. I feel good about that.
 
#5
always put your 401k first. a designer handbag is kinda ridiculous if you don't have a good lifestyle to carry around in it -

save, invest, spend, splurge...that's my motto!
 
#7
addicted said:
Of course saving money is better. But I also feel we need to live life too. So - put at least half of that in your 401K and get a bag as well!

I contribute 10% to my 401k. I feel good about that.
Click to expand...

Indeed, i agree.

I think we need to not only put down roots for our future, but we also need to live for today...as we just don't know how many tomorrows there are - and wouldn't life be just a touch boring if it was all work, save, work, save, work and save?

My partner gets a fabulous pension on retirement, but boy, does he pay for it now - £280 per month (How many bags could i buy a year on that?:lol: )

Live a little and save a little and then when you reach retirement, you'll still have a lovely fat nest egg to live off!

It's all about striking the right balance, for you.;)
 
#8
I don't have a 401K at work but I max out my Roth every year. Saving while you are young is so important. I got off to a late start, I wish I started saving for retirement right out of college. Don't throw away free money, put at least $2,000.00 in your 401K and take the match.
 
#10
That's the reason I haven't gotten my Koala yet...I'd much rather have some money stashed away in case of emergency...anything can happen.

Don't get me wrong...if I get some extra cash, I'd probably buy the wallet (and a bag, too) but the 4.75% ING was looking good to me.
 
#11
401K!!!! I've been contributing the max since I started working for my company, (they match up to a certain percentage) and now after 13 years have a pretty sizeable chunk of cash saved toward retirement. 401K contributions are also usually pre-tax, which reduces the amount of income you are taxed on. I personally think anyone who has this available to them (esp. with company matching) and does not take advantage of it is loco. This money is YOURS, unlike company pension plans which nowadays can vanish if companies to bankrupt.
 
#13
It sounds like the 401K is the better option. But, maybe you can compromise and get one bag or one pair of Choos (or one bag AND one pair of Choos!) a year instead of the 4 pieces so you don't feel deprived!
 
#14
I don't have either and won't until I get married and get my citizenship. I do have an ING savings account, which gives me more than 4% on my money in there. Until I'm definitely sure I'm here to stay (you never know what I may get deported for, I heard too many horror stories), I'll hold off the IRAs for now.
 
#15
Definitely opt for the 401K. If you start saving 10% of every dollar you earn when you are young, you will have a comfortable retirement. If you don't, you might very well be working into your seventies.
 
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