Purses, money and opportunity costs

[beggarbaby]

I just concentrate on living within my means. What other people's situations are is none of my business and I'll likely to be wrong anyway if I guess. I think people underestimate what you can afford by saving on everyday things like drinks or eating out. By the end of the year I have enough for a two week trip just by not eating out too much and not buying coffees or drinks. Like others said, it all just depends on where you want to park your money. Most of us can't have it all so we have to prioritize.

Personally we spend on necessities first, make sure to stay out of debt and live fairly cheaply. That enables me to buy some stuff that I want and travel a couple of times a year. You have to find your personal preference for a balance between saving for the future and still living it up a little in the present. I've seen people who really want to spend money they don't have and also people who are so obsessed with saving that they have no pleasures in life.

I will say that it helps immensely not to have student loan debt. That becomes such a significant percentage of your monthly expenses for such a long time if you don't go into a high paying field. A lot of upper middle class people have had help on this front from family, who pay for the education. I'd guess that the amount of premier designer bags bought by affluent women probably still out weighs the number bought by those who are living outside their means. There are millions of people who make at least mid 6 figures. I'm guessing the luxury industry is like any other where 20% of the clientele account for 80% of business.

 

[jellyv]

I think TPF can be a little overwhelming for a new member, so I certainly understanding raising this question. The shortest answer is that this is essentially a hobby site for enthusiasts. Enthusiasts of any kind spend money one way rather than another-it's a given.

Will you see potential overspending (by some standard) here? Yes, you will. Will you see collectors who know how to balance their spending overall? Yes. And all other possibilities. It's like any other online gathering, in terms of the common sense and degree of authenticity you might encounter.

If I were asked for advice about spending time here, I'd say: remember who you are. In fact, check out the amusing thread here on whether you buy for your real lifestyle or your imaginary one: worth pondering.

 

[closedaccount.3837238]

You'll see a lot of beautiful reveals and amazing bag collections on thepurseforum - but never judge a member by their bags. You'll find on tpf some members are financially secure, established and wealthy, and some members just love bags and work very hard on saving for them. There are a few who go into debt buying their bags, and while I don’t agree with doing that, we need to respect each other’s financial decisions and priorities.

Where you are on the financial spectrum will depend on what is expensive and what you value. $167 is a lot for you, and 10 years ago it was a lot for me too! But age, savings, occupation and lifestyle really do influence on how you spend your money. And then on top of it you still need to take into consideration individual values - someone making 90K might still find that a Prada bag worth 2K to not be of value, but would happily spend 10K on a vacation. Everyone's situation and values is slightly different.

I save for my bags, and I do not sacrifice anything in my life for them. I buy bags which are in a comfortable price range for me. However, if we were to compare expenditures you’ll find I don’t buy makeup, jewelry, go on holidays and my work wardrobe consists of scrubs. From that perspective you’ll see I have more disposable income just from having different interests and priorities on how I spend my income.

At the end of the day I can minimize what I buy to “just being a bag” but I can also say that the bags I buy are beautiful, luxurious, and classy. Most members try and keep a balanced view and agree we don’t “need” the designer bags we buy, but we do want them and its okay to buy them.

tpf is one of the very few places where women and men can break social taboos and talk about money, designers, and indulgences without being negatively judged or appearing like we are putting those in different financial brackets down. It's also a place to share in the joy and excitement of a new bag and seeing some great arm candy (lol).

 

[nascar fan]

You'll see a lot of beautiful reveals and amazing bag collections on thepurseforum - but never judge a member by their bags. You'll find on tpf some members are financially secure, established and wealthy, and some members just love bags and work very hard on saving for them. There are a few who go into debt buying their bags, and while I don’t agree with doing that, we need to respect each other’s financial decisions and priorities.

Where you are on the financial spectrum will depend on what is expensive and what you value. $167 is a lot for you, and 10 years ago it was a lot for me too! But age, savings, occupation and lifestyle really do influence on how you spend your money. And then on top of it you still need to take into consideration individual values - someone making 90K might still find that a Prada bag worth 2K to not be of value, but would happily spend 10K on a vacation. Everyone's situation and values is slightly different.

I save for my bags, and I do not sacrifice anything in my life for them. I buy bags which are in a comfortable price range for me. However, if we were to compare expenditures you’ll find I don’t buy makeup, jewelry, go on holidays and my work wardrobe consists of scrubs. From that perspective you’ll see I have more disposable income just from having different interests and priorities on how I spend my income.

At the end of the day I can minimize what I buy to “just being a bag” but I can also say that the bags I buy are beautiful, luxurious, and classy. Most members try and keep a balanced view and agree we don’t “need” the designer bags we buy, but we do want them and its okay to buy them.

tpf is one of the very few places where women and men can break social taboos and talk about money, designers, and indulgences without being negatively judged or appearing like we are putting those in different financial brackets down. It's also a place to share in the joy and excitement of a new bag and seeing some great arm candy (lol).

Very well said, Starbunny!

 

[wineluvr]

I really like this question! My income is probably average but I am quite careful with my money, so I make sure that mortgage, car, food, etc is taken care of first and foremost. In this way, I don't really feel that I am sacrificing anything to buy a bag if I want to buy it. I travel often, I have no debt (other than my mortgage) and I do save as well.

The older I get, the more comfortable I am with spending more on "wants" instead of "needs" though (and expensive bags are definitely not a "need"). It wasn't until a few years ago that I started to spend larger amounts of money on bags and it averages out to about one per year. The first premier designer bag I purchased was to celebrate a career milestone in my life. And it might sound a little silly, but carrying that bag made me feel different. I knew what I achieved in order to buy that bag, and so I felt accomplished whenever I carried it. And that kind of feeling is addicting!

 

[platinum_babie]

You'll see a lot of beautiful reveals and amazing bag collections on thepurseforum - but never judge a member by their bags. You'll find on tpf some members are financially secure, established and wealthy, and some members just love bags and work very hard on saving for them. There are a few who go into debt buying their bags, and while I don’t agree with doing that, we need to respect each other’s financial decisions and priorities.

Where you are on the financial spectrum will depend on what is expensive and what you value. $167 is a lot for you, and 10 years ago it was a lot for me too! But age, savings, occupation and lifestyle really do influence on how you spend your money. And then on top of it you still need to take into consideration individual values - someone making 90K might still find that a Prada bag worth 2K to not be of value, but would happily spend 10K on a vacation. Everyone's situation and values is slightly different.

I save for my bags, and I do not sacrifice anything in my life for them. I buy bags which are in a comfortable price range for me. However, if we were to compare expenditures you’ll find I don’t buy makeup, jewelry, go on holidays and my work wardrobe consists of scrubs. From that perspective you’ll see I have more disposable income just from having different interests and priorities on how I spend my income.

At the end of the day I can minimize what I buy to “just being a bag” but I can also say that the bags I buy are beautiful, luxurious, and classy. Most members try and keep a balanced view and agree we don’t “need” the designer bags we buy, but we do want them and its okay to buy them.

tpf is one of the very few places where women and men can break social taboos and talk about money, designers, and indulgences without being negatively judged or appearing like we are putting those in different financial brackets down. It's also a place to share in the joy and excitement of a new bag and seeing some great arm candy (lol).

I agree with Nascar Fan: perfectly said Starbunny!!

And then I see people who have bought multiple high-end purses in a short time and think wow. How do you afford it and what are you not doing to be able to spend that kind of money on purses?

To answer the first question on how do people afford it, IMHO I think it's an income level question.
According to Suisse Credit, in 2013 there are at east 1.8 million millionaires in the world (that's accounted for!), but you don't need to have at least a million dollars to afford nice bags. If your household income is above 100k annually, you can easily afford a couple of bags a year without having to "sacrifice" anything (i.e., you can still live the exact same lifestyle with or without bags). Some people just have money sitting around.

The follow-up question is what are you NOT doing...well, there are people who buy expensive gadgets as soon as they come out, there are people who go out to eat everyday, people who drop a couple hundred of dollars every weekend at the club, people who are chain smokers and drinkers in countries with really heavy sin tax...everyone's got their vice right? In this forum, it's clearly handbags, sometimes in place of other habits of consumption, sometimes not

It's really about how you budget. For example, some people think they need at least 1 million dollar before they can retire so they will need to put in a ton of money in their retirement fund, some people are okay with just three months worth of salary and live in a country that helps them with old age pension - so really lifestyle and your values make a huge difference on what you "can" afford and what you "cannot" afford. I quote can and cannot because this is really subject to interpretation. There's a thread that asks you how do you afford your bags, and you can get some insight into people's mentality and income level there too.

 

[chicinthecity777]

For many of the women on the forum, this is a hobby. Some guys belong to a golf club and pay thousands of dollars a year for a membership. I have a friend who takes international trips 2-3 times a year...one trip to Europe was 3.5 weeks long and over $16k. Some people spend hundreds of dollars on tattoos and body art. There are always other options for that money such as investing, donating the money to charity etc. but a hobby is a hobby, something that people do for fun. They aren't necessities but they bring us joy and as long as you aren't living beyond your means w/ a shopping habit, why does it matter?

THIS!!! Why do people spend on anything other than the necessary food, clothing and shelter?

 

[CoachCruiser]

Why do you choose to spend significant amounts of money on a single purse rather than on something else? What is it that makes that purse worth spending $2000 on rather than saving that money or putting it in retirement or paying down debt or using it for something else? What kinds of things are you sacrificing to be able to buy that purse?

$2000, even $500, is a lot of money in my world and to spend it on a purse is just something I can't fathom right now. I just bought a Coach bag for $167 and that was a lot for me. Usually I don't spend more than about $60 on a purse. And then I see people who have bought multiple high-end purses in a short time and think wow. How do you afford it and what are you not doing to be able to spend that kind of money on purses?

Not judging at all, but this is completely new to me and I'm trying to understand. Thanks.

Thank you for being so respectful with the way you worded your question. I understand how it can seem overwhelming here on tpf!

I agree with so many who have responded to your inquiry.

I used to go into debt with bags, but no more. I learned my lesson quickly. I'm now on a great budget and I now sell bags I no longer use or adore in order to fund new ones. Thankfully, I've reached a point in my collection where I feel content with what I have. (There will always be "one more bag" I'd love to have, but for now....I'm trying to enjoy this phase of happiness/satisfaction!)

As far as "sacrifices," I agree with others -- I don't actually see them as sacrifices, but choices as to what to spend my money on. Like many, I don't spend money on expensive clothes, or spas, or restaurants or even vacations (though I'd like to start saving and traveling more). And I don't "miss" those things because I really haven't been interested in those options (up until the traveling bit, just recently).

People spend their money on so many things; I don't see why I should judge others for buying a motorcycle or a boat or a designer dress or a whoppingly expensive handbag any differently. You live once, and if you have the means to do it, then I think, "why the hell not?"

Priorities come first: rent/mortgage, bills, food/groceries, car, school loans, kids if you have them, of course, savings, etc etc....and after that, it's all fair game to me!

 

[indiaink]

This thread is really evolving into like so many before it - in particular this one:

http://forum.purseblog.com/handbags-and-purses/how-do-you-afford-your-bags-how-many-2993.html

 

[ladysarah]

. Some people come on here to learn so that their next purchase is the best possible.

That's a good point, PT - often overlooked during buying frenzies. There is so much good information here, I learned so much from some of the ladies here. It is crucial though not to be too impressionable and be able to sift facts and make good judgments.

 

[papertiger]

That's a good point, PT - often overlooked during buying frenzies. There is so much good information here, I learned so much from some of the ladies here. It is crucial though not to be too impressionable and be able to sift facts and make good judgments.

I too have learned so much from tPF, you included, your thoughtful threads and insightful comments. It is a powerhouse of information.

We have a lot to be thankful for on tPF, although we should be careful not to think that some tPF behaviour, such as 285 Chanel unused Classic Flaps or whatever is the norm. Those kind of collectors are not the majority of tPFers, they are still the extreme here. Personally, I don't mind if they are really living 'fantasy' lifestyle or it's all in their heads since it does not affect me and my choices. I know I already have too much. I choose not to be cynical but nor join in with the madness. There are some lovely tPFers that obviously spend a vast fortune on lots and lots of incredible things, I love to look, but I think I'm mad enough buying a scarf when I went in a store for a dress (yes, today ) it's just about as much madness as I can deal with

 

[ladysarah]

285 Chanel unused Classic Flaps or whatever is the norm

:lolots:

 

[haruhii]

You'll see a lot of beautiful reveals and amazing bag collections on thepurseforum - but never judge a member by their bags. You'll find on tpf some members are financially secure, established and wealthy, and some members just love bags and work very hard on saving for them. There are a few who go into debt buying their bags, and while I don’t agree with doing that, we need to respect each other’s financial decisions and priorities.

Where you are on the financial spectrum will depend on what is expensive and what you value. $167 is a lot for you, and 10 years ago it was a lot for me too! But age, savings, occupation and lifestyle really do influence on how you spend your money. And then on top of it you still need to take into consideration individual values - someone making 90K might still find that a Prada bag worth 2K to not be of value, but would happily spend 10K on a vacation. Everyone's situation and values is slightly different.

I save for my bags, and I do not sacrifice anything in my life for them. I buy bags which are in a comfortable price range for me. However, if we were to compare expenditures you’ll find I don’t buy makeup, jewelry, go on holidays and my work wardrobe consists of scrubs. From that perspective you’ll see I have more disposable income just from having different interests and priorities on how I spend my income.

At the end of the day I can minimize what I buy to “just being a bag” but I can also say that the bags I buy are beautiful, luxurious, and classy. Most members try and keep a balanced view and agree we don’t “need” the designer bags we buy, but we do want them and its okay to buy them.

tpf is one of the very few places where women and men can break social taboos and talk about money, designers, and indulgences without being negatively judged or appearing like we are putting those in different financial brackets down. It's also a place to share in the joy and excitement of a new bag and seeing some great arm candy (lol).

Great post! I agree completely. When I was in school I used mostly no name bags and had a few nicer ones from Coach. Now that I'm working and making a decent wage, I like to buy myself nicer things here and there but I still have a budget that I stick to. People choose to spend their money in different ways and I don't think there is a right or wrong as long as they aren't going into debt over luxuries. Just my 2 cents.

 

[tiggycat]

Like others have said, it's all about where you are in your life. I never had a bag that cost over $50 (and only had one at a time until it wore out) until I was over 50.

Even now my entire collection of bags and SLGs is only worth about $3,000 retail (and I bought most of them on sale so I didn't actually pay that much).

I don't deprive myself of anything to pay for bags (I don't smoke or buy coffees, which some people pay $10 or more a day for, and that's not a sacrifice because I wouldn't buy those things anyway). I have a Kindle and mostly stick to the free books and that saves a lot of money as well.

Please keep in mind that those with the huge collections or that buy a new designer bag every month are rare, this is a worldwide forum and they are a very tiny percentage of the real world. Most people have to save up for a designer bag if they want one, or they have one bag that they wanted for a long time before they got it and will never buy another of that value.

 

[ladysarah]

Good point about the smoking! I don't think I know anyone who smokes anymore, as it's so unfashionable and people are much more health conscious. Imagine though how much money is wasted on that...a fortune!