Purses, money and opportunity costs

[Emily1830]

When people look at me, some of them make judgments based on my designer clothes, shoes, and bags. However, they don't know about my past, the fact that I own my own home, have no debt, and have a nice sizable emergency fund.

I grew up poor and from an early age had to work various jobs, particularly in college (sometimes, I would have 2-3 jobs at a time to pay for food, living expenses, etc.). Rarely would a summer go by from high school until I became a mom that I wasn't working (I worked another job during the summer, even though I didn't have to). I didn't go on vacations until I met my husband. I lived very frugally until I became financially secure.

I always loved beautiful things and admired them from afar, and now that I can afford them, they bring a lot of pleasure to me. I also believe that if you invest in quality things, they will last longer. I still wear designer shoes that I bought 10 years ago.

My point is that now, I have earned my designer things with years and years of hard work. What you see isn't the whole story.

 

[Love Of My Life]

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).

Well said... We should be buying bags that we love & derive pleasure from.

That should be the priority & enjoy whatever bag you bag.. Cost is really

irrelevant..

 

[jailnurse93]

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.

YES YES and YES. And just because I will afford myself a few luxuries in life (my leather habit) doesn't mean that I don't where every cent of my money is and where every cent of it is spent. I know someone who doesn't even know how much their car costs. As far as they know, it costs $385/month for awhile....and they don't make much to begin with so it's not like they have money to burn.
I save where I can; I am a divorced homeowner so everything's on me and a home is always a money-suck, even though mine has been paid off since 96. I did take out a home equity loan for some work several years ago which just killed me because I HATE paying interest; it's like flushing money down the toilet. I'm fixing my hot water tank today. The lower element has burned out so I need to drain the tank and replace the element unless I can live with 10 min showers (NO), LOL. Gotta love the internet, I've saved a ton of money in home repairs. I haven't had a car payment for many, many years, I paid off my Jeep long ago but all that tells you is that I'll be car shopping in the near future, lol. I also have a classic car, 72 Chevelle, but I haven't been playing with that the past few summers so it's going up for sale this year. I have a decent cushion of savings, I could go buy some Birkins and Chanels if wanted but as a homeowner, I wouldn't. And also the fact that I don't think any leather bags out there are worth more $400-$500 in materials and labor. And even at that price, I want it on sale.

I'm 51 and I love Dooney, Coach, Linea Pelle, Roots, Frye, Liebeskind. I've worked since I was 14 years old. I remember the first nice bag that I bought. It was a thick, brown suede hobo, I have no idea who made it. I bought it at Kaufman's Dept. Store. I was 16 and I paided $50 and that was alot of money for me in 1978. I carried it and a leather marroon clutch all through college.
I put alot of thought and research into all of my purchases; not just my leather items but household goods also. That's all part of the "handbag thing" too---the searching and wanting. I haven't bought a bag since the end of summer 2013. I'm waiting until I really, really have that longing, that want, like I had for the Dooney Florentine Satchel, and like I had for black Coach Rory.....

As far as other tPF members and their purchases, some do buy more than me and spend alot more than me....Their financial situation is better than mine; they make more money/have less bills or are putting them or credit cards and not worrying about it. I run across someone every now and then who is hiding them from a husband; he doesn't know that he is buying them.... Some of the "premier" designer tPFer's definetely are in a much better financial situation than I am. I can see part of their homes in their reveals or in the bag showcase forum. But I've also seen homes in reveals in those forums that looked as ordinary as mine. Priorities and all....

 

[Vegas Long Legs]

It's true that some ladies are in serious debt too . Have a look at the money forum and you will see.]

In defense of them, they are working on their issues. Many of them are there for the support of others, to get off the hamster wheel of shopping & 'wanting' and keeping up with the Jones. To talk about money stuff, retirement, investing, etc.
I would bet that area is the most fiscally responsible in TPF. Because of their awareness, would guess they have more real assets & less debt than any of the designer bag threads.
The serious debt people are still shopping. It takes a lot to want to move past that.

 

[Mariapia]

It's true that some ladies are in serious debt too . Have a look at the money forum and you will see.]

In defense of them, they are working on their issues. Many of them are there for the support of others, to get off the hamster wheel of shopping & 'wanting' and keeping up with the Jones. To talk about money stuff, retirement, investing, etc.
I would bet that area is the most fiscally responsible in TPF. Because of their awareness, would guess they have more real assets & less debt than any of the designer bag threads.
The serious debt people are still shopping. It takes a lot to want to move past that.

I didn't judge those persons. I have one of them in my family. She is in a very tough situation, asked social services for help, didn't get any when they realized the couple's income is quite high.
For her, luxury items mean social status. Everything she buys has to be branded and have a logo. A pair of j brand jeans with their simple pockets and nothing to say what brand it is....doesn't interest her....It has to be DandG or Gaultier....etc.
I tried to talk her into saving money, it didn't work.....
Her last purchase is a Chanel skirt and jacket. I don't even know where she is going to wear them.....

 

[madeinnyc]

I work hard for the money I make so I feel if I want to buy an expensive bag, that's my right. My wife, on the other hand, makes a very good salary and couldn't care less about bags lol. Now that we're expecting, we are focusing much more on spoiling our little bebe but I still love my bags

 

[LVk8]

When I was in high school/college I used to carry funky former military bags that I bought at the Army Navy store. That was my budget back then & I loved those bags much! I also went to a northeastern liberal arts school where nobody knew anything about fashion so it wasn't on my radar screen at the time. I had to get up to speed really quickly in my first "grown up" job after college bc I was working in finance & had to be presentable to clients.

I remember my first designer handbag purchase like it was yesterday. At that same first "grown up" job I earned a really good bonus my first year and went to Neiman Marcus for a Marc Jacobs Stella. Even now (just about a decade later) it gets near-daily use since it's the perfect size for laptop/files. I had it cleaned/refurbished awhile back (broken interior zipper pull, etc) and it is in amazing shape.

Since my Marc Jacobs has held up so well over time, I've been very interested over the past couple years in investing into preloved bags and breathing new life into designer pieces that will hold up over the years and remain timeless. Some users here only buy new but there are also loads of threads dedicated to shopping, authenticating, upcycling & caring for bags that may have seen better days in the past.

That's 99% of the reason I joined the forum - I found a Louis Vuitton in a consignment shop that reminded me of a Marc Jacobs so when I was doing some homework to figure out "what is this bag, exactly?" and "is it real?" before deciding to buy it, I found this site and saw how helpful and supportive the other users are. And now I can't stop reading!

 

[MargaretofAnjou]

I don't drink coffee or smoke. I also like to cook so I rarely eat out, though I eat organic which is expensive! I'm a grad student, but I get a decent (by grad student standards) stipend. My car is paid off. I have various gadgets, but don't upgrade every time there's a new verision. I get discounts on software through my university. I don't play video games. I admit that half of my bags have been presents from my parents. They know fashion is one of my hobbies, so they don't mind Christmas and birthday gifts. However, this past summer, I worked an internship where I made quite a bit of money, and I rewarded myself too.

Additionally, I almost never pay for full price for a bag (exceptions to this are Dior and Givenchy). If you're patient and know where/when to look, you can get premium for 50-60% off, sometimes even more if you're lucky. I'm certainly not buying bags every month, maybe 2-3 times a year. I already have a savings account and have emergency money and whatnot, and I'm beginning retirement plans this year.

I'm graduating in the spring (finally!) and I'm lucky enough to have a pretty well paying job waiting for me next year. Until I get married, buy a house, and have children, I have some disposable income for things like bags and clothes. My other big hobbies are books and the arts (theater/opera, concerts, etc.), and I budget for all of them accordingly. The key is balance

I buy for quality and aesthetic. It's hard to enjoy cheaper bags once you've gone designer. That's not to say I'll buy a bag just because of the label. A lot of stuff is over-priced given the quality, so I'm picky.

 

[Ralli]

I bought my Celine trapeze for $2350 back in 2012 and I did it because I had the money to blow.

I didn't hurt my savings and I didn't have to go lean for any amount of time to afford it. When a sum I'm about to spend won't make a difference to my bottom line, then I'm pretty comfortable spending it. I believe that in addition to experiences and freedom money buys nice things. There should be a time and place to make big purchases that make you happy - and believe me, my Celine makes me thrilled every time I wear it out.

 

[Maice]

Very interesting thread. In response, I will reuse some text (with a few edits) I had previously included in one of my older threads. It's a bit long, so apologies in advance. Here goes:


"These "designer purchases" actually mean more to me than most - while I was raised a spoiled Daddy's princess, hubby and I decided to get married very young, and had our daughter young as well - so I was not going to get spoiled anymore at that point (apparently). This was not a popular decision with our families, and we had to prove ourselves to them by getting academic scholarships (and maintaining those) while we were in college, to make sure we did finish our college education. So, raising a baby and working hard to stay on top of our classes to maintain our scholarships to finish school, I did not have the luxury of buying (or even thinking of) designer purchases back then. After graduation, we worked our way up the corporate ladder - but I still did not have time to think about designer items since our money was now going to our daughter's preschool and school needs. A few years ago though, we both made it to executive positions in a highly respected multi-national technology firm, and with our new salaries, we finally had enough for me to think of even looking at designer bags! I always loved bags, but again, never had the time or luxury to even consider designer bags until a few years ago, when hubby and I became more highly-paid executives. So I am actually just rediscovering designer bags, and it means more to me than most because it shows me that we've made it through our time of proving ourselves. "


So, similar to a lot of the people here, buying/collecting handbags is a hobby for me, and on top of that, it has become a symbol of our "triumph" over the odds. It might seem super weird to some, but this is true to me. I can finally afford designer items after the struggles of past, when eating in a fast food joint was almost a luxury to us - two young parents with a small daughter.


As some others who responded put more eloquently, it is a different situation per person. That's mine.

 

[grietje]

I agree with all the perpectives here. Why and why not someone makes something a priority is a personal matter.

As for me, I have two mantras that come into play here:
1) I enable, but only responsibly. If it means less food, no clothes for the kids, being in debt, don't buy it.
2) I'd give up ALL my things up in a heartbeat if it meant keeping my family safe and happy.

 

[Arizabif]

Well, there is opportunity cost in *everything*, if you think about it. And after awhile, if you aren't willing to spend some of the money, it's sort of meaningless to keep acquiring it beyond what you need for basic survival. Aren't we entitled to a little bit of pleasure in this life?


I am one of the cheapest people around, but even I got tired of buying cheap bags at Target or Kohls, and having them look dirty and nasty within a few uses. I suppose one could say "What does it matter if it is dirty, it is performing it's function just fine." Absolutely true. I could carry all my stuff in the plastic grocery bag I got for free or shove my bank card and phone in my bra when I go out, if you want to really go there.


I don't really want to go there, though, and most people probably don't either. I want stuff that is going to last more than a short while. In the long run, it is a better use of my time and money to buy quality items. I don't want any more bags that will fall apart in 3 months. Same goes for my shoes, clothes, furniture, dishes, pots and pans (I am on a quest to find vintage Corning Ware and Pyrex because that stuff is nearly indestructible and I am on my FOURTH set of cheap stuff in the last 10 years. No more!)


That's why I have started buying expensive handbags. I don't want any more junky crap. Not saying that every designer item is automatically high-quality. A lot of them have cheaped out and getting by on their name while cutting quality to save a buck. But there are still enough excellent quality items out there, (not all of them are $$$, either), and those are the things I will pursue. I have stuff in my "collection" that includes a $2, no-name embroidered cotton make up bag I found at Goodwill (I sold off my expensive leather cases in favor of this $2 case), Fossil, Coach, Rebecca Minkoff, Gucci, Longchamp, and Louis Vuitton. The stuff I have has been cherry-picked because the construction, material, and details indicated it would last several years, if not a decade or more (the LV I have is about 20 years old, some of my Coach is over 10 years old, none of it looks dirty, junky, or nasty). I don't go into debt for any of it, and nearly all of it was purchased at thrift stores or on sale.

 

[lenarmc]

I read a book which I can't recall off of the top of my head that said to find out what you like, and that's what you should spend your discretionary cash on. The author and her family liked to travel so they had an older, inexpensive home and an old vehicle.

1. My boys-I have two sons, and I see them as extension of myself and my husband. Therefore, I like for them to look nice. While some may balk at the fact that I spend $150+ on a pair of shoes for them (my oldest wears a 12!!!), I think that it's ludicrous to spend $1000 on a pair of pumps. A pair from the thrift shop works fine for me as long as they don't look run over. They also both play football and basketball, and my oldest has a personal trainer because he's trying out for the USA Football Team.

2. Reading-I love to read so I own 2 Kindle Fires both with different books on them. I don't know if this is a splurge since Kindle books are significantly cheaper than paper books.

3. Handbags, sunglasses, and jeans-These are my personal splurges. I have curated handbags that I love and use over and over. I own over 30 sunglasses, most of which are designer that I have bought from consignment shops or TJ Maxx. Don't even get me started on jeans. Clothes, shoes, and jewelry doesn't interest me at all. Well, aside from my handbag necklace which I wear almost every single day. My only hobby is cross-stitching which is fairly inexpensive. It's my creative outlet.

We plan one big trip every couple of years, but we live in the DC metroplex which doesn't take any more than 2-4 hours to get anywhere like New York, Baltimore, Philadelphia, etc. We drive a 17 year old car that's paid for and live in a two bedroom apartment for now because we'll be leaving this area in 3 years. We could go for a 3 bedroom, but we'd rather have the money for something else.

Find what's important to you and save up for it. Go inexpensive on everything else.

 

[tinybutterfly]

I think you may be surprised how many on tPF don't binge on bags and then dispose of them on e_bay infinitum. Some people come on here to learn so that their next purchase is the best possible.

I came here by way of a Google search. I was looking for information on LV bags.

That was three years ago. I read a lot here before I even created an account and started posting. I don't post a lot.

I have very few bags compared to most people here. Even at that I may weed out a few bags and wallets that don't get much use. There is one vintage LV I'd like to get, one more cosmetic bag and I am done. I like a nice, well edited collection of purses I can use that fits my lifestyle and budget. I have mostly contemporary designers and a few premier pieces.

It can be a little overwhelming here at first, but there are so many interesting forums here, a lot of very nice people and it has become one of my favorite sites to read.

ETA-I forgot to say that I would rather pay more for several nicer handbags. I tried to be careful selecting styles that would work for me. I've made a few mistakes, but mostly I have bags that I can use for a long time for many different occasions. Now to get my wardrobe in order.

 

[abwd]

This is such an interesting question and a very honest one. It is a question I suspect we all ask OURSELVES at some point and I am not sure many of us even have a good answer.

I agree that it is a matter of priorities. I have loved bags since early high school and I remember my friends being appalled that I bought that $50 Liz Claiborne sophomore year!! **GASP** But I also worked three jobs every summer since I was fourteen and I bought all of my own school clothes every year.

As an adult, my handbag purchases are still a treat for me that I work hard for. And yes, I give up other things. I don't have a fancy car, my expenses are taken care of, I save, my kids are well taken care of and I do feel as if I have earned the right to splurge on myself a bit. I work 80 hours a week in a great job, but handbags are something just for me and I am okay with that.

As other people have said, some spend their money on golf, skiing, vacations, spas, technology etc. Everyone has a Kryptonite. Mine just happens to come in the form of leather and in a dust bag.

I think it is very important though to be aware of what you are spending and make sure your spending reflects your priorities. That being said, it is not productive trying to figure out "how" people can afford things. Investments and good stock picks, inheritance, bonuses etc. In the past ten years of my life my financial situation has changed dramatically. I could not have imagined being where I am now when I was twenty.

But again, thank you for such a thoughtful and honest question. It is always good to take a moment to stop and think about our motivations.