Let's discuss: Financial Planning for Chanel/luxury bags?

[Shindess]

Normally I only read and never post however, this is a very interesting topic.

I think you can't compare each person's personal financial situation as everyone's is different. Prioirties will be different based on it as well as living location.

Here in the UK healthcare is always provided through the NHS. Dental healthcare can be done on a insurance/payment plan and pension pots must always be paid into through employment now.

Fortunately I was in the position to purchase my first bag in my teens when I begun working. All my education was funded through my employment, so I have never had any student loans. In fact my masters is being paid for by my company at the moment.

I purchased my home at 21 with a mortgage and yes I have funded luxury purchases with credit cards, often you get 0% interest cards here or bonuses for buying on CC with cash back or points. So if a price increase is around the corner and you have means to pay it back during this period - why not? You even get the added bonus.

I am 27, have no children and handbags give me joy. I wouldn't sacrifice a holiday or other daily expenditures for a bag. Providing each person is sensiable with their purchases, be it with CC (short term) it shouldn't really matter.

Sitting on 6 Chanel's now and 3 LV and debating if to buy a new flap/reissue before the next price increase. This will be a CC purchase with the means to pay back before the 0% purchase rate is up and saving on the next price hike.

What do you think?

 

[EdnaMode]

Just be responsible. This means different things for different people. If people choose to save for months for a bag, more power to them. I admire those people and I think they wholeheartedly deserve that bag.

 

[Superbe]

Agree with all of the above. Handbags are a treat to be made once you have a stable income and good amount of savings so spending a few thousand dollars won’t make a big difference to your bank account.

That being said, people get to that stage in life at different ages and I also don’t see a reason why not to treat yourself for a big occasion before that, especially if you’ve been lusting after a handbag for a long time and it would make you happy. Life is to be enjoyed after all so I wouldn’t judge if someone decides to invest in a classic bag which can be used for years before they get to that point in their lives...but it’s all in the balance and realising what should be the priorities

 

[EdnaMode]

Normally I only read and never post however, this is a very interesting topic.

I think you can't compare each person's personal financial situation as everyone's is different. Prioirties will be different based on it as well as living location.

Here in the UK healthcare is always provided through the NHS. Dental healthcare can be done on a insurance/payment plan and pension pots must always be paid into through employment now.

Fortunately I was in the position to purchase my first bag in my teens when I begun working. All my education was funded through my employment, so I have never had any student loans. In fact my masters is being paid for by my company at the moment.

I purchased my home at 21 with a mortgage and yes I have funded luxury purchases with credit cards, often you get 0% interest cards here or bonuses for buying on CC with cash back or points. So if a price increase is around the corner and you have means to pay it back during this period - why not? You even get the added bonus.

I am 27, have no children and handbags give me joy. I wouldn't sacrifice a holiday or other daily expenditures for a bag. Providing each person is sensiable with their purchases, be it with CC (short term) it shouldn't really matter.

Sitting on 6 Chanel's now and 3 LV and debating if to buy a new flap/reissue before the next price increase. This will be a CC purchase with the means to pay back before the 0% purchase rate is up and saving on the next price hike.

What do you think?

100% agree with you. You are responsible and that's all that matters. Not your age, occupation, retirement acct balance etc. Those are all nice to have but not prerequisites to buying a handbag. "handbag responsibly"

 

[EditorLifeCali]

This thread actually got me to start PF instead of just reading.

I’m really glad a couple of members pointed out everyone’s situation is going to vary a lot based on where they live. I’m in the US now, and lived abroad and everything differs a lot even the cost of bags. It does change outlook on how to spend and save completely.

So to me, it’s unfair to judge people when and how and where they purchase their bags. I don’t mind if people disagree with that statement, but as with everyone on here it’s really just my personal opinion.

There’s a lot of insight but I’m the same as @Shindess my company covered my education, and I could afford what I wanted earlier on.

I agree the most with @Superbe — just be responsible about your finances. There’s tons of advice out there on finance, but No two people are going to be in the exact same financial situation. When you or any young student or entry level starts out you will figure things out over time that best fit your lifestyle and finances.

 

[MyAwesomeFinds]

Another thing to keep in mind is that once you start spending a certain way, like buying luxury goods, chances are the habit will persist. It’s hard to go back. So I would really wait until you are financially secure and can comfortably afford luxury goods before making that leap.

So true. Once you buy a chanel, dior etc you're never going to be satisfied with a tory burch or kate spade again. I didn't buy my first premiere designer luxury bag until i was 37 turning 38 and had no more student debt plus had a nice retirement nest egg started.

 

[EdnaMode]

This thread actually got me to start PF instead of just reading.

I’m really glad a couple of members pointed out everyone’s situation is going to vary a lot based on where they live. I’m in the US now, and lived abroad and everything differs a lot even the cost of bags. It does change outlook on how to spend and save completely.

So to me, it’s unfair to judge people when and how and where they purchase their bags. I don’t mind if people disagree with that statement, but as with everyone on here it’s really just my personal opinion.

There’s a lot of insight but I’m the same as @Shindess my company covered my education, and I could afford what I wanted earlier on.

I agree the most with @Superbe — just be responsible about your finances. There’s tons of advice out there on finance, but No two people are going to be in the exact same financial situation. When you or any young student or entry level starts out you will figure things out over time that best fit your lifestyle and finances.

Amen.

 

[MHLee]

100% agree with you. You are responsible and that's all that matters. Not your age, occupation, retirement acct balance etc. Those are all nice to have but not prerequisites to buying a handbag. "handbag responsibly"

I love that "handbag responsibly," I texted that line to a couple people this morning...it is perfect!

 

[EdnaMode]

I love that "handbag responsibly," I texted that line to a couple people this morning...it is perfect!

 

[ilovemydog]

Normally I only read and never post however, this is a very interesting topic.

I think you can't compare each person's personal financial situation as everyone's is different. Prioirties will be different based on it as well as living location.

Here in the UK healthcare is always provided through the NHS. Dental healthcare can be done on a insurance/payment plan and pension pots must always be paid into through employment now.

Fortunately I was in the position to purchase my first bag in my teens when I begun working. All my education was funded through my employment, so I have never had any student loans. In fact my masters is being paid for by my company at the moment.

I purchased my home at 21 with a mortgage and yes I have funded luxury purchases with credit cards, often you get 0% interest cards here or bonuses for buying on CC with cash back or points. So if a price increase is around the corner and you have means to pay it back during this period - why not? You even get the added bonus.

I am 27, have no children and handbags give me joy. I wouldn't sacrifice a holiday or other daily expenditures for a bag. Providing each person is sensiable with their purchases, be it with CC (short term) it shouldn't really matter.

Sitting on 6 Chanel's now and 3 LV and debating if to buy a new flap/reissue before the next price increase. This will be a CC purchase with the means to pay back before the 0% purchase rate is up and saving on the next price hike.

What do you think?

Good point! It’s easy to make blanket statements about who should and shouldn’t buy luxury bags or to blindly judge based off of their age or where they purchase their bags from, but not everyone is American. Some people are fortunate enough to live n in countries with universal healthcare, “free” tuition, mandated pensions/retirement savings accounts, and student loan debt isn’t the norm everywhere (especially for undergrad).

The reality is most Americans cannot max out their 401K accounts because $19,000 (2019 contributions upped) is a big hit on their income. Maxing out a 401K also not make a lot of sense if they’re not receiving an employer match.

There’s so many different variables that go beyond age, retirement (what if you die tomorrow?), job etc.

The only thing I can stress is just never go into debt over luxury. The stress of debt is not worth it and certainly not a luxurious feeling

 

[vhuynh2]

Good point! It’s easy to make blanket statements about who should and shouldn’t buy luxury bags or to blindly judge based off of their age or where they purchase their bags from, but not everyone is American. Some people are fortunate enough to live n in countries with universal healthcare, “free” tuition, mandated pensions/retirement savings accounts, and student loan debt isn’t the norm everywhere (especially for undergrad).

The reality is most Americans cannot max out their 401K accounts because $19,000 (2019 contributions upped) is a big hit on their income. Maxing out a 401K also not make a lot of sense if they’re not receiving an employer match.

There’s so many different variables that go beyond age, retirement (what if you die tomorrow?), job etc.

The only thing I can stress is just never go into debt over luxury. The stress of debt is not worth it and certainly not a luxurious feeling

I’m curious why maxing out your 401K (if you can afford to) doesn’t make sense if your employer doesn’t match. Just trying to learn.

 

[ilovemydog]

I’m curious why maxing out your 401K (if you can afford to) doesn’t make sense if your employer doesn’t match. Just trying to learn.

Some people would rather throw their money away at an account where they can choose how aggressive/conservative they are and can choose their own investments. So they might prioritize maxing out their IRA/Roth/backdoor (previously 5500/6500 but now 6000/7000 for 2019), and then contribute to their 401K. Some 401K providers (like mine) do not have the best allocations and the fees can be high.

I don't necessarily care for Dave Ramsey, but he recommends contributing to your 401K up to employer match and then focusing on a roth ira should your household income permit. And the reality is for most Americans , 6K a year is a big enough hit on their income.

Having said that I'm in a position where I am very lucky to be able to nearly max out my 401K and max out my IRA, but not everyone can say that. I have coworkers in their 40s who are busting their butts and cutting corners because they didn't save enough while younger. People often forget that retirement is not based on age, it's based on your financial situation.

 

[vhuynh2]

Some people would rather throw their money away at an account where they can choose how aggressive/conservative they are and can choose their own investments. So they might prioritize maxing out their IRA/Roth/backdoor (previously 5500/6500 but now 6000/7000 for 2019), and then contribute to their 401K. Some 401K providers (like mine) do not have the best allocations and the fees can be high.

I don't necessarily care for Dave Ramsey, but he recommends contributing to your 401K up to employer match and then focusing on a roth ira should your household income permit. And the reality is for most Americans , 6K a year is a big enough hit on their income.

Having said that I'm in a position where I am very lucky to be able to nearly max out my 401K and max out my IRA, but not everyone can say that. I have coworkers in their 40s who are busting their butts and cutting corners because they didn't save enough while younger. People often forget that retirement is not based on age, it's based on your financial situation.

Thanks for clearing that up. We also max out IRA and 401K and have other investments but without employer match on the 401K so I was curious about your statement.

 

[Tuned83]

I have waved bye bye to a bag fund since having my first child. This is despite no loans, debts and decent savings. I am in my mid thirties and spent a fair bit in my 20s. Now I live precariously through everyone else on tpf and I am very content with what I do have.

 

[Coconuts40]

I don't think there is anything bad about saving to purchase a bag, if that makes you happy. Sometimes we have materialistic goals that can be perceived as silly, like saving for a 7K+ handbag, but I don't think setting a goal and treating yourself is a bad thing. This needs discipline, and I think it teaches discipline for delayed gratification instead of immediate gratification which our society has become so accustomed to.

Social media has played a big role in this. I will be the first to admit that forums, IG, etc have influenced my decision a few times to purchase things I would have never considered before. But this is changing because I realize my lifestyle is so simple that I don't need as much as I want. I also feel I would rather invest my money.

My story: I am in a position where I spent years paying my mortgage, investing, developing a retirement plan. Only now where I feel everything is in order do I use my discretionary funds to have fun. Do not get into debt for luxury items. It's just not worth it. These forums can make it seem like everyone is purchasing a bag like they purchase a cup of coffee. This is why I think theses discussions are so important so we can all realize what it takes to be able to afford these items. FYI, I am in my mid 40's.