There's nothing wrong with maxing it out, especially given that you're able to max out both your 401K and IRA. But for people who are unable to max out both and have to choose, it might make more sense for them to max out IRA/Roth IRA and then focus on 401K.
Let's discuss: Financial Planning for Chanel/luxury bags?
- Thread starter tenyongie
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Excellent points.
Unfortunately in the UK education is not free and I left home at 16. To survive, I found a job that would fund my training/education whilst being paid at a significantly lower rate.
I have been lucky to have these opportunities and this is not the norm, considering what could of been the outcome.
Thanks for starting this thread, I'm a Chanel lurker - would love one but the time hasn't yet come in terms of financial stability. There's so much great advice already but just want to share my own.
DH and I's joint income brings in a bit more than 12K monthly. So necessities are definitely met, we can go on vacations, put money into savings etc.
My views, which I impose on myself, is everyone in the family should have the same level of comfort. Our 3 kids should also have nice stuff, it doesn't need to be designer but definitely high quality. Clothing, food, house stuff should also be high quality. The bags shouldn't come at the cost of something else suffering. IMHO, having a nice bag is the fruit of having a stable life.
But that said, I totally get wanting a thing. Wanting to look nice, etc. DH and I might go to the outlets every now and then and try to scope out lower prices and make efforts like not buying coffee, getting nails done - although we just never really do this since there's free coffee at work and I like painting my own nails. Point being, we also don't feel the need to be at 'x' income to want certain material things, but there's definitely thought, planning and deliberation involved.
DH and I's joint income brings in a bit more than 12K monthly. So necessities are definitely met, we can go on vacations, put money into savings etc.
My views, which I impose on myself, is everyone in the family should have the same level of comfort. Our 3 kids should also have nice stuff, it doesn't need to be designer but definitely high quality. Clothing, food, house stuff should also be high quality. The bags shouldn't come at the cost of something else suffering. IMHO, having a nice bag is the fruit of having a stable life.
But that said, I totally get wanting a thing. Wanting to look nice, etc. DH and I might go to the outlets every now and then and try to scope out lower prices and make efforts like not buying coffee, getting nails done - although we just never really do this since there's free coffee at work and I like painting my own nails. Point being, we also don't feel the need to be at 'x' income to want certain material things, but there's definitely thought, planning and deliberation involved.
After researching Chanel's price increases over the last 10 years, I realized it was now or never. There is no way I will ever pay 7K for a handbag. So I puchased the styles I wanted and completed my handbag collection. I could have paid all cash but I am more comfortable being as liquid as possible. I am in my late 30s single with no kids. So why not. I purchased my house in my late 20s and I contribute to my savings and 401k account. I believe a person has to live a life one is comfortable with, whether that be personal or financial. You should plan for tomorrow (i.e. retirement), but always remember tomorrow is not promised.
Exactly! There has to be some indulgence along with responsibility as @GuyAmberFire stated, "tomorrow isn't promised."
This is so true! I used to hang out on a couple of different finance related forums and people could be extremely judgmental if you just so much as bought a t shirt from Old Navy because in their minds that $20 could’ve gone to your savings or retirement. And if they drove anything other than a used Toyota Corolla and didn’t wear shoes until you had holes in them they acted like you were destined to never retire. We all like to indulge, but difference income levels and situations permit for us to indulge in different ways. I’ve seen a couple of threads like this on the hermes forum and people are honest about how they save.
But if I die tomorrow I’d like for family and friends to remember that I was financially responsible but also managed to enjoy life. If handbags and travel are how I enjoy it so be it.
Some might disagree, but my personal rule is ask yourself if you have the cash straight away to buy that Chanel bag, if not then you don’t have sufficient liquidity to afford it, don’t get it, don’t get it on payment plan, save that fund for raining day or just for comfort.
This is a luxury forum and it definitely feels like designer bags are necessities, when in reality they are not, think about what you want to do or can do with the bag fund first whether it’s for family, education, holiday/experiences, retirement, house renovation etc etc, it’s not worth it to put a bag over your major goals in life.
This is a luxury forum and it definitely feels like designer bags are necessities, when in reality they are not, think about what you want to do or can do with the bag fund first whether it’s for family, education, holiday/experiences, retirement, house renovation etc etc, it’s not worth it to put a bag over your major goals in life.
I hope no one disagrees with this because it is very sound advice. And to add onto that, don’t pay with a credit card or charge card unless you have the money to pay the total balance off. Just because you can doesn’t mean you should
I don't understand the comment that buying a preloved bag possibly means one doesn't have the financial ability to purchase a Chanel. I haven't gone the preloved route, but would seriously consider it if the bag is in great condition and costs significantly less to buy than from the boutique. What is wrong with being prudent about one's spending?
Just adding my two cents - I have lusted after a classic flap since I was in high school, and once I started working I saved a bit every month. A few years later I had the opportunity to buy a house, and so that money went towards a down payment instead. Zero regrets. Same again last year when I gave a large amount of money to my sister as a wedding present.
Now that I am in my early 30s I earn a decent salary, however I do have other commitments that I prioritize- emergency fund, retirement account contributions, not to mention saving for other fun stuff like travel. I also send my retired parents some money each month.
As a result, my Chanel quest has been taking a really long time! I have been squirreling away a little money into my "Chanel Fund" for a while now and maybe by this summer I should have enough money set aside for me to finally take the plunge!
This is a bit rambly, but the point I'm trying to make is that for me, my journey towards a Chanel has been long and winding, with a few detours along the way, but as a result I have a strong safety net in case life throws me any curve balls, and tbh knowing how long I saved for this seems to make it all that sweeter!
Now that I am in my early 30s I earn a decent salary, however I do have other commitments that I prioritize- emergency fund, retirement account contributions, not to mention saving for other fun stuff like travel. I also send my retired parents some money each month.
As a result, my Chanel quest has been taking a really long time! I have been squirreling away a little money into my "Chanel Fund" for a while now and maybe by this summer I should have enough money set aside for me to finally take the plunge!
This is a bit rambly, but the point I'm trying to make is that for me, my journey towards a Chanel has been long and winding, with a few detours along the way, but as a result I have a strong safety net in case life throws me any curve balls, and tbh knowing how long I saved for this seems to make it all that sweeter!
@chanelbee23, what a sweet post, hope you get your dream handbag soon! Definitely knowing you’ve waited long for something and worked hard to afford buying it makes it a much more special treat!
What a wonderful thread! I agree on not going into debt to purchase a luxury item like a bag. For me, I made many nonessential luxury purchases in my early 20’s that I look back on now and see as missed opportunities. For example, at 23 I bought a luxury car and for that same amount my friend bought a condo. Fast forward a few years and I sell the car for significantly less than half of what I paid (don’t get me wrong - I loved the car and have all the memories), and my friend has her condo which has appreciated in value. It was a lesson for me about assets and liabilities and opened my eyes into the using my money to do more than just consume - which I admittedly did plenty of in my 20’s.
I admire your dedication to prioritizing necessities and am excited for you to finally get your dream bag! I am also curious, though, as to where you live based on your comment about using the bag fund as a downpayment on a home instead.
I do have a concern, though, since it sounds like you've been lusting after this bag for 15 years. Have you thought about the possibility of theft or loss? Just sounds like because it's been such a difficult and long endeavor that that would be heartbreaking. This is why I choose not to buy bags unless they are still less than the amount of 1 paycheck - and even then I limit my bag purchases to about 2-3x a year.
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I didn’t start my Chanel collection until I was in my 40s and could easily pay for them out of my earnings. Even now with my home paid off, I only buy designer things when I have extra money. Financial security feels better than having a purse collection.