Collins defines luxury goods as “things which are not necessary, but which give you pleasure or make your life more comfortable.”
I have my eyes on buying some luxury items like watches, shoes and bags.
I can probably save for it but how will it affect my finances in the long run? At what point can I say that I can already afford it?
Quennie attended a financial seminar and the speaker had a criteria when it comes to buying luxury goods.
If you can afford 10 times of that luxury item, then it means you can afford to buy that item.
That’s a difficult criteria yet a very sound advice.
Buy that 20,000 limited edition shoes if you have 200,000.
Buy that 100,000 smartphone if you have 1,000,000.
Buy that 400,000 designer bag if you have 4,000,000.
Buy that 800,000 luxury watch if you have 8,000,000.
It is only when you have 10 times the money can you truly say that you can afford luxury.
This criteria can discourage others from buying luxury goods and consider buying a cheaper and more practical alternative. There is nothing wrong with that.
Or the criteria can encourage others to work harder and find ways to reach their financial goals.
Today, as I list the luxury items I would love to buy someday, I’m starting to think that maybe Quennie didn’t really heard this criteria from a seminar. She probably just made it up herself. Hehehe…
But it is a very good financial advice that we follow.
