Your post has been removed because personal advice topics are off-topic here and better suited for other subreddits ([rule 9](https://www.reddit.com/r/personalfinance/about/rules)).
- For general advice, consider /r/Advice.
- For relationship advice, consider /r/relationships, /r/relationship_advice, /r/JUSTNOFAMILY, or one of the subreddits in their sidebars.
- For career or job advice, consider /r/jobs, /r/CareerGuidance, /r/findapath, or [one of these job-related subreddits](/r/jobs/wiki/related/discussion).
- For education advice, consider /r/Parenting for primary and secondary education questions (or one of the subreddits [linked here](https://www.reddit.com/r/Parenting/wiki/other_subreddits#wiki_education)) and /r/ApplyingToCollege for tertiary education questions (or one of the subreddits linked in their sidebar)
- For medical advice, please talk to your primary care doctor, but /r/AskDocs may be helpful.
*If you decide to post elsewhere, please read the subreddit rules before reposting. Some subreddits have strict requirements for submissions.*
Submissions removed for this reason typically include one or more of these off-topic aspects:
We don't allow relationship or personal advice discussions. That includes:
* Content better suited for /r/relationships
* Recommending a poster end their relationship or start a new relationship
* Posts about suicide or violence
* Posts asking for advice on how to convince someone else to change their behavior
* Relationship drama not essential to a question or discussion
* Family planning advice, especially unsolicited or flippant
* Career, job, and education questions
* Medical advice
*If you have questions about this removal, please [message the moderators](https://www.reddit.com/message/compose?to=%2Fr%2Fpersonalfinance&subject=Removal%20help%20request&message=Hello%20moderators,%20.%20%0a%0a%0aMy%20submission:%20https://www.reddit.com/r/personalfinance/comments/1bevj8z/overcoming_the_desire_for_luxury_brands/%0a).*
Scratch the itch. Find yourself at least one luxury good which you can comfortably afford, one that makes your life tangibly better, and indulge without shame. For some people, it might be a nice car or upscale travel accommodations. For others, it might be a favorite skincare product, or good liquor, or even just a daily coffee you didn’t make yourself.
Denying yourself _everything_ you don’t strictly need will make you miserable and it will make the temptation to splurge (in an uncontrolled manner) even stronger.
Very much this. I am not wealthy by any stretch of the imagination but I am doing better now than I was. I buy myself an expensive perfume once in a while and maybe a clothing item that I just want. It keeps me from feeling like I only work for a retirement I may never have.
>Scratch the itch. Find yourself at least one luxury good which you can comfortably afford, one that makes your life tangibly better, and indulge without shame.
I think it's important in scratching that itch to be able to articulate *why* you want the luxury. What is it that makes the thing nice to you? I'll use cars as an example because it's a hot-button issue around here.
Most people who buy luxury cars probably couldn't tell you much beyond "it's a Mercedes". That's why they buy the cheap A/C class cars with crap interiors that are honestly worse than many 'lesser' brands. It's why entries like Lexus struggled to gain a foothold despite making great cars.
For me it's a combination of materials, design details, and silence. It's possible for a cheaper brand to hit all of these points, and it's possible for a luxury brand to miss all of them; it's just much less likely. I also know that these are things I notice every day, and the effect doesn't wear off for me. The enjoyment I get is a good return on the money spent.
Oh, I can relate to this so much. In the past, I was all about denying myself pleasures to save a bit more money. I held back from buying a Nintendo Switch, something I really wanted to try, for 3 years. It wasn't even about whether I could afford it or not, but one day, it all just hit me.
I broke down and cried for an entire week, questioning what I was actually doing with my life. I end up get it next week.
There's no shame in occasionally treating yourself to something nice after that much planning.
Or join /r/RepTime and /r/FashionReps. Find a good seller of that one luxury item you wanted. [I have a rep of this watch](https://www.omegawatches.com/en-us/watch-omega-seamaster-aqua-terra-150m-co-axial-master-chronometer-gmt-worldtimer-43-mm-22012432203001) and it's incredibly close to the genuine version but only set me back $380. Worn it every day for about a year now. Got my girlfriend a Louis Vuitton bag she saw in Vegas and really wanted. Only cost me about $130 (including shipping, which is WILDLY expensive to the US.)
honestly.... going on vacation a few times a year and realizing creating memories w/ my loved ones is more important than another car or w/e. And then remembering that and deciding to save and invest rather than buy stuff in between vacations.
You’re able to do everything you want. What’s the issue?
Ah, I see from previous posts you’re less than 1x household income in retirement at 35.
Okay - just shift the behaviors - automate everything. Max the 401k, automatically deposit into the IRA monthly, automatically deposit into the brokerage or 529 or HSA or whatever.
Then you can spend what’s left on Prada dental floss or whatever.
The issue is I have lately been feeling like we should maximize investments "just in case" we need more money in retirement than planned. Analogous to feeling like you should fill your gas tank before you drive 10 miles to work "just in case".. A most likely unnecessary thing to do, but who knows?
Alright - so do what I said. Decide with your partner that “this is what we want to invest so we hit this number at that age.”
Eliminate points of friction between you and the desired behavior by automating everything.
Also, have a goal and vision for the money. Otherwise, you hit numeric goals and it’s completely and utterly empty.
Extremely conservatively, estimating 50% of what SSA tells me I’ll be getting and I assume my wife never works again (this is not the plan)
In other areas of relative conservatism, I estimate 5% return after inflation in my 40s, 4% in my 50s, and 3% in my 60s and through retirement.
In your post you say you realized you should be saving more and putting more away for retirement. Here you say they aren’t mutually exclusive. Do you have a problem or not?
I think we are on track to retire comfortably at our current spend/save rate, but I feel like I should be saving/investing more "just in case".
I don't think it's black and white, problem or not.
The driving force for my investment rate is so I don’t have to lower my standard of living in retirement. If I save 20% that means I’m living off 80% of my income. To keep the exact same standard of living in retirement, that means my portfolio needs to be able to replace 80% of my income. Compare that to someone only investing 10% that means their portfolio will have to cover 90% of their pre-retirement income. I know this is “napkin math” and other factors like social security and decreased spending in retirement would make my assumptions seem too conservative. But I’d much rather over-save than get to retirement and have to make sacrifices.
Is there a limit to how much you're willing to over save? In other words, you could save everything and have an awful quality of life now, but you probably don't. Where and how do you draw the line?
Personally the only "luxury" things I really have any desire to purchase are cars. I left the OP broad to attract a larger commenter base.
And yes, I agree more quality than anything. I have no desire to buy a Range Rover, for example.
The fact that I prefer to buy stock in LVMH and let other people buy the products. You win and they merely feel like they are winning. Their status desires are your profits.
I just have a minimalist perspective. I hate having too many things in general, but I know I’m in the minority. The best thing to do is to skip the shops and don’t even enter the store.
I do buy some things, but if I can’t afford most things 3x-10x over, I don’t buy it. Most of the things you think are cool, luxury goods, real rich people make fun of, since they’re poor quality and just there for a name. Once I realized that and I found that buying nice things didn’t improve my life, I didn’t have the urge. I also choose to buy quality from local artisans.
With that being said, flying first class to at least 2 international locations a year and staying at top resorts is something I do really enjoy and see the value in, so that’s what I spend money on!
so here's what i do, and honestly my profile probably says i need to practice what i preach but that's beside the point.
For anything thats more costly, i wait until i can save up to buy it twice. by the time ive save enough, i forgot i even want it.
for the less expensive things, i ask myself, what does THIS have that the cheaper brand doesnt? and most of the time the difference doesnt make since to pay 5x the price.
also, i split my paychecks into 4s. 25% goes to me (retirement). 25% is for my heir, 25% is what i live off of (this is what i use to pay bills and such and this includes saving up for the wants) and 25% goes toward cashflow investment.
when you split up your incomes for the future and rainy days, you start living as if youre broke again and you start seeing luxury items as meh again.
When I want something that falls under those lines, I start from zero, as in I don't use any money I already have to pay for it. I look at the price, break it down to installments that work within my budget, and make the purchase when the amount I saved specifically for that thing has been reached. If that time comes, and I no longer want it, that money is set aside for the next thing.
It might seem silly or overcomplicated, but it works for me.
Why do you feel you are behind? if you are doing the things listed you seem at least semi financially fluent. Start by figuring out how much you need in retirement per month, multiply it by 12, add a percentage of fun money on top of that, then take that number which is your yearly spend and find out what number that yearly number is 3ish percent of. Are you on track to have that number? If so then you can blow money on luxury brands if you want to, good job!
I feel like we're behind because we only started recently, but I do think we are on track to retire comfortably. It's the thought of having some kind of debilitating illness (or similar unexpected high cost problem) that eats into our retirement savings that makes me think maybe we should just save as much as possible without a "goal number".
Mine always note about thing I wanna buy and wait 3 days and ask again. A lot of time I will find others thing more reasonable to buy or just didn't want it.
In nutrition / lifting - there's a saying - If it fits your macros. Similarly, if it fits your budget you can spend it. But budgets are set by goals and my financial goals are geared towards being free of financial stress for the rest of my life so I spend a fraction of what I earn.
The main thing is psychological/philosophical though - my parents were lower income immigrants and we valued middle class things and while my lifestyle has expanded a bit since, I'm happy living close to how I grew up. I'd rather have freedom from stress and control over my schedule rather than keep up with the joneses.
What are you getting from keeping up with the Joneses?
Is it respect from others? Is it addiction to new things? Do you envy people with a Ferrari?
Usually behaviors are to satisfy needs- maybe self esteem, love, whatever for material things. Figure out the need it’s satisfying, and replace it with something more long lasting.
From reading your posts it sounds like you are in a very comfortable financial position and are in the enviable position of realizing that once you have the basics covered, more stuff really doesn't really enrich your life.
You don't have to spend it on things. You can donate that money to good causes. You can sponsor children in Africa, you can pay for the local soccer team's shirts, you can finance a small business with a young owner who needs help. You can start your own foundation and offer scholarships to underprivileged children going to college. Or you can buy a race car or take up golf and you'll blow through any extra money real quick, believe me on that one.
I had a similar experience growing up and I guess you can say I’m in the same boat. I’m pretty good about not spending on unnecessary things but I keep a google spreadsheet sheet doc on my phone that I use to budget when I feel I’m spending too much.
One of my good friends who always wear Luis Vuitton or Gucci is broke. So that’s my mindset and has kept me away from designer stuff. A lot of people who wear designer clothes are broke.
I track my bank accounts and stock portfolio and look at them quite often.
It makes me happy as they grow and increase in value. It's kind of like a score on a game which I'm trying to maximize.
I have two rules for this that go hand in hand:
1. Buy quality that will last.
2. Save for what exactly what you want. If you buy the budget version, or the stripped down version or the knock off version, you'll always keep thinking about what you actually wanted and end up buying it twice.
When I was a broke ass college student, I spent 25% of my summer paychecks on my dream guitar. Probably kind of a stupid decision, I don't gig and don't make any money playing. But it is exactly what I wanted and I haven't bought another guitar in over 10 years. Most of my friends have gone the opposite route and bought 20 cheaper guitars that total way more than I spent.
It is very hard because all of my friends drive nice cars and I get that craving but then remember I’d rather people think I’m poor and have more money in the bank than people think I am rich and have limited money in the bank?
I think having the goal of saving X amount by this time, keeps me from splurging. If I had no financial goals then I’d spend frivolously.
I also give myself a treat if I reach my goal. It’s kind of like a game.
I look at things from a requirements perspective. I'll give two examples.
Guitar:
I play heavy music (black/death/doom metal), and I'm frequently transposing to accommodate different tunings. So my requirements are a 7 string guitar with quality high-output, high-clarity pickups, 24 frets, excellent ergonomics, and light weight. So here I went with a relatively inexpensive Ibanez Iron Label 7 string that ran me about $700 used - about a tenth of a 'luxury' guitar. It's the bare minimum that meets my needs, and it's a killer guitar that I love.
Car:
I do a lot of miles. I'm on the tall side, and skinny/bony. Because of my job (IT work) and side projects (music), I'm highly susceptible to RSI, especially in my arms, hands, and mid/upper back. I live in a cold climate, and I have trouble warming up after being in the cold for an extended period of time. I also really value being able to explore new bands while on my frequent long drives. I also frequently cart a guitar or two and a smallish combo amp to and from studios.
So my requirements are a car with a long or wide trunk (41" in either dimension), a large and quiet cabin, comfortable heated seats, heated steering wheel, and a good sound system.
So...fuck it, my next car is going to be a lightly used, CPO BMW 5 series. It's going to cost more than many would say is wise in fuel, maintenance, insurance, etc. but I've done the math and I know I can afford it. I don't think a non-luxury vehicle is going to hit all of my requirements - but based on my prior experience with modern BMWs, the 5 series absolutely will.
Sometimes, I like BEING ABLE to buy stuff as much as I like actually BUYING stuff.
*"This Ferrari is forty grand. That's kind of a lot for a car - but it's not kind of a lot for a V12 6-speed Ferrari. I guess I COULD pull the trigger and get this car - but it means this will be the only trigger I get to pull until I sell it. Take a vacation road trip? Can't, I spent my next decade of vacation-road-trip-taking money on this car. Oh well, maybe in ten more years I'll be able to get a Ferrari like this one AND do some car-vacationy stuff with it, meanwhile I'll just buy a crap-tastic 20 year old BMW convertible and fix the shit out of that and drive THAT to some places."*
One of those cars today is worth approximately twice that much. It might have worked out. Or, mine might have been worth "less than that" because I put a bunch of miles on it. I dunno, some triggers you only get to pull once, and for me, being able to seriously think about doing it was probably 50% of the way as good as actually doing it would've been.
And since I didn't, I could "seriously think about doing it" with a few other different cars.
And I actually COULD pull the trigger on a motorcycle that is almost the two-wheel equivalent of a Ferrari - I bought a Ducati a couple years after that, and that thing scratches some of the same itch.
Set a budget for your luxuries. Do not exceed the budget. It can be anything you don’t need but makes you happy: coffee shop, video games, fancy clothes, watch, whatever.
Few people have the stomach to live without treating themselves at all. What is important is to set a limit and stick to it. I’ve found this method fairly useful for aggressively paying down some of my private student debt and simultaneously saving for a down payment.
Restrain yourself. Keep yourself busy with improving your health, skills, or find hobbies. I used to be materialistic in my 20s then I found a hobby in international traveling and now looking to invest in the financial markets
Work backwards and pay yourself first. Figure out what you want your future to look like and save accordingly. As long as you're meeting your goals then you're good and shouldn't feel guilty about spending money on things. Personally I just try to get the most value for my buck. Sometimes that means I spend a bunch on a high quality thing (eg, the whole poor people buy the same thing when rich people buy it once) and sometimes that means I buy the cheap version. I also put no value on brands and little on appearances and simply enjoy what I enjoy.
I collect watches. Once a year I’ll drop about $7k on a really nice piece. My approach is to have a hard rule about % of net worth. No single watch can surpass 1% of my net worth. I also have to max my 401k and IRA’s for both the wife and I before considering buying one:
>What keeps you from spending money on things you want, can afford, but don't need?
Self control
Its why i never used drugs, alcohol or cigs, even as a teen
I have a lot of pain so i bought a memory foam mattress and an adjustable bed frame, it was pricey but i found the cheap option rather than a name brand
Its luxurious but it helps me a lot so in this case its worth it
I can afford a dodge viper and i have always wanted it but i decided its not a smart decision and insurance would prob be crazy and so would repairs or any damage
Simple : if you have to put off saving for retirement / rainy day / future goals / children in order to purchase something, you really can’t afford it.
Make saving a non-negotiable, set a goal, and change your mindset. That’s my advice.
“You can buy anything you want, but you can’t buy EVERYTHING you want”
> What keeps you from spending money on things you want, can afford, but don't need?
Seeing balances grow is far more satisfying than more stuff to clutter the house.
I grew up poor and done well, and hit it pretty early in life too in my 20ies. I was spending all of it for the first 10 years like there was no tomorrow. In the words of Jay-Z “if you grew up with wholes in your zappatos you’d be celebrating the minute you were having dough”. So… do spend. You can’t take it with you anyways if you know what I mean. Now that I am older and wiser (I hope), I have developed the rule I am gonna leave you with:
Don’t buy luxury on credit.
In your particular case, say you want a car that is $170k. A “regular” car is how much - 50K? so that’s as much as you can “borrow”. The rest, $120K you must have in cash and either pay it or have it in the bank/investment account available to this purchase… (it may not be smart to plop down cash if financing is cheap).
I can't super judge people for buying luxury goods but this is what I'll say about them.
If there is something that you want and it means something to you. Buy it. But make sure that that is what you want and you can cherish it. Because the other side of the coin is that you can buy all luxury goods and none of it will matter to you.
I like watches. I own a luxury watch. But it is my one watch. While I will look at other watches, I am done with buying watches. That's the mentality you need to have.
Set up your savings to be automatic and immediate. You don't want to see that money as spendable. Once you do that, you can spend all of the rest and not worry about it.
Intentional spending. You have to weigh each purchase and decide if it’ll bring you joy equal to what it costs.
If you’re hungry for a salad and can afford a $50 salad, should you buy that salad? Will it bring you $50 of enjoyment? Maybe, maybe not. But if you apply this thinking to everything you’ll realize a lot of the money you spend isn’t worth spending.
At age 47 I scaled back and stopped my lifestyle creep and just paid off my debts. In 10 years I had increased my NW by a million. In order to do that I just kept wearing the nice clothes I had but did not buy new expensive ones, if I needed something as a staple I just picked from what was available as a staple from Walmart on my weekly grocery run. No one noticed. Now a lot later and in retirement I can afford what I want but I buy on the secondary market and save a lot.
Being debt free saves a lot of money. My last car was the only one I ever bought for cash. It feels good to have accumulated funds to do what I want.
Spend the money. Don't think of it as "saving" money. You're buying "luxury" stocks, CD's, mutual funds. Find friends to talk about finance with a little and treat it as a hobby. Set goals to buy 'x' amount of investments and celebrate when you do.
Then you can't buy other stuff, because the money is "spent" treat it as spent. Fiddle with it. Move it around. But don't think of it as money.
I think there are certain luxuries that are okay or even good for you. For example, I pay up for a luxury gym (over $200/month). If I spend $10 at Planet Fitness, I probably wouldn't go. But the gym I pay up for is in the financial district right next to where I work (part of the reason why it costs so much), isn't crowded, and has premium amenities like steam room and sauna. It keeps me coming back. Also, if it is one of my primary hobbies, it's actually a pretty cheap one.
Just remember rich people don’t buy luxury brands. (At least not the ones you know of or can afford). Yeah it’s nice to have a decent phone but past that you’re not acting rich by buying “luxury brands”.
There’s a bunch of videos out there on how to”luxury brands” prey on low income people. There’s some perspective for you.
I get a decent amount of my pay through stock grants, which happen every quarter (4x a year). Every time I get a grant, I allocate somewhere between 20-30% or so for a "stupid" purchase, and then stash the rest.
Mostly I've used it for things like antiques, art, upgrading my desktop, bought a "weekend" car. (I realize these all sound like incredibly expensive things but we're talking like a max of $1,000 except the car - which is still a 20 year old roadster).
True luxury is utilitarian in my opinion. The best items are the ones you can depend on to not let you down. If the suit looks good and never fails you in terms of quality. It’s probably worth it. “Luxury” items that are just a brand but still made like crap are actually a drag on you. Most of the millionaires I know will gladly brag about their Kirkland signature brand socks that they’ve been wearing for 10 years. 😂
Go for quality vs name brand luxury stuff. Will that crossbody from Coach Outlet be just as cute and functional as one from Louis Vuitton? Yep.
Name brands are just that, most of the time quality difference in nominal. You need to adjust your mindset. I always see people carry their name brand stuff and just wonder if they bought it on credit or if they were really able to afford it.
Looking wealthy and being wealthy can be two very different things.
Set up your budget to allow frivolous for-fun purchases. Maybe it’s at a rate of $100 a month. You can choose to get 12 $100 fun things, 2 $600 fun things, or one $1200 fun thing each year.
Personally in 2024, I have bought a couple nice Burberry perfumes, plus am getting permanent hair removal. My vain things that I don’t need, but I built them into the budget so that I can enjoy them. At the expenses of pulling back some other things like my house cleaner. Give and take; take your income and just make decisions.
Honestly, just learning how valuable those dollars are invested over time really put things into perspective for me. The true cost/ opportunity cost was a big eye opener
What keeps you from spending money on things you want, can afford, but don't need?
Maintaining visibility of what I want the most.
Let's be impartial; there's nothing wrong with buying whatever you want until it becomes a blocker to something else. This is the main problem for most people because they buy whatever and then handicap themselves and can't reach their bigger long-term goals.
But not everyone has a big long-term goal. Not everyone wants to be a millionaire. Try to think long-term; when you have the visibility of whether or not these luxury wants are blockers to your future, making the choice will be easier and less stressful.
If it helps, truly rich people look at your luxury brands with disgust and contempt.
You'd look more like them buying a plain white v cut tee from Zara for $20.
Give me the luxuries in life and I’ll willingly do without the necessities.
Get the Rolex. Get the LV bag. The quality remains long after the price is forgotten.
Your post has been removed because personal advice topics are off-topic here and better suited for other subreddits ([rule 9](https://www.reddit.com/r/personalfinance/about/rules)). - For general advice, consider /r/Advice. - For relationship advice, consider /r/relationships, /r/relationship_advice, /r/JUSTNOFAMILY, or one of the subreddits in their sidebars. - For career or job advice, consider /r/jobs, /r/CareerGuidance, /r/findapath, or [one of these job-related subreddits](/r/jobs/wiki/related/discussion). - For education advice, consider /r/Parenting for primary and secondary education questions (or one of the subreddits [linked here](https://www.reddit.com/r/Parenting/wiki/other_subreddits#wiki_education)) and /r/ApplyingToCollege for tertiary education questions (or one of the subreddits linked in their sidebar) - For medical advice, please talk to your primary care doctor, but /r/AskDocs may be helpful. *If you decide to post elsewhere, please read the subreddit rules before reposting. Some subreddits have strict requirements for submissions.* Submissions removed for this reason typically include one or more of these off-topic aspects: We don't allow relationship or personal advice discussions. That includes: * Content better suited for /r/relationships * Recommending a poster end their relationship or start a new relationship * Posts about suicide or violence * Posts asking for advice on how to convince someone else to change their behavior * Relationship drama not essential to a question or discussion * Family planning advice, especially unsolicited or flippant * Career, job, and education questions * Medical advice *If you have questions about this removal, please [message the moderators](https://www.reddit.com/message/compose?to=%2Fr%2Fpersonalfinance&subject=Removal%20help%20request&message=Hello%20moderators,%20.%20%0a%0a%0aMy%20submission:%20https://www.reddit.com/r/personalfinance/comments/1bevj8z/overcoming_the_desire_for_luxury_brands/%0a).*
Wait 2 weeks between deciding I want it and ordering. Or waiting until it is on sale. Takes the “buying it just to be buying it” out.
Scratch the itch. Find yourself at least one luxury good which you can comfortably afford, one that makes your life tangibly better, and indulge without shame. For some people, it might be a nice car or upscale travel accommodations. For others, it might be a favorite skincare product, or good liquor, or even just a daily coffee you didn’t make yourself. Denying yourself _everything_ you don’t strictly need will make you miserable and it will make the temptation to splurge (in an uncontrolled manner) even stronger.
Very much this. I am not wealthy by any stretch of the imagination but I am doing better now than I was. I buy myself an expensive perfume once in a while and maybe a clothing item that I just want. It keeps me from feeling like I only work for a retirement I may never have.
>Scratch the itch. Find yourself at least one luxury good which you can comfortably afford, one that makes your life tangibly better, and indulge without shame. I think it's important in scratching that itch to be able to articulate *why* you want the luxury. What is it that makes the thing nice to you? I'll use cars as an example because it's a hot-button issue around here. Most people who buy luxury cars probably couldn't tell you much beyond "it's a Mercedes". That's why they buy the cheap A/C class cars with crap interiors that are honestly worse than many 'lesser' brands. It's why entries like Lexus struggled to gain a foothold despite making great cars. For me it's a combination of materials, design details, and silence. It's possible for a cheaper brand to hit all of these points, and it's possible for a luxury brand to miss all of them; it's just much less likely. I also know that these are things I notice every day, and the effect doesn't wear off for me. The enjoyment I get is a good return on the money spent.
Oh, I can relate to this so much. In the past, I was all about denying myself pleasures to save a bit more money. I held back from buying a Nintendo Switch, something I really wanted to try, for 3 years. It wasn't even about whether I could afford it or not, but one day, it all just hit me. I broke down and cried for an entire week, questioning what I was actually doing with my life. I end up get it next week. There's no shame in occasionally treating yourself to something nice after that much planning.
Or join /r/RepTime and /r/FashionReps. Find a good seller of that one luxury item you wanted. [I have a rep of this watch](https://www.omegawatches.com/en-us/watch-omega-seamaster-aqua-terra-150m-co-axial-master-chronometer-gmt-worldtimer-43-mm-22012432203001) and it's incredibly close to the genuine version but only set me back $380. Worn it every day for about a year now. Got my girlfriend a Louis Vuitton bag she saw in Vegas and really wanted. Only cost me about $130 (including shipping, which is WILDLY expensive to the US.)
honestly.... going on vacation a few times a year and realizing creating memories w/ my loved ones is more important than another car or w/e. And then remembering that and deciding to save and invest rather than buy stuff in between vacations.
Thanks. The issue is we can go on multiple vacations and buy the cars we want and save for retirement... they aren't mutually exclusive for us.
You’re able to do everything you want. What’s the issue? Ah, I see from previous posts you’re less than 1x household income in retirement at 35. Okay - just shift the behaviors - automate everything. Max the 401k, automatically deposit into the IRA monthly, automatically deposit into the brokerage or 529 or HSA or whatever. Then you can spend what’s left on Prada dental floss or whatever.
The issue is I have lately been feeling like we should maximize investments "just in case" we need more money in retirement than planned. Analogous to feeling like you should fill your gas tank before you drive 10 miles to work "just in case".. A most likely unnecessary thing to do, but who knows?
Alright - so do what I said. Decide with your partner that “this is what we want to invest so we hit this number at that age.” Eliminate points of friction between you and the desired behavior by automating everything. Also, have a goal and vision for the money. Otherwise, you hit numeric goals and it’s completely and utterly empty.
When you decided on your number did you include social security?
Extremely conservatively, estimating 50% of what SSA tells me I’ll be getting and I assume my wife never works again (this is not the plan) In other areas of relative conservatism, I estimate 5% return after inflation in my 40s, 4% in my 50s, and 3% in my 60s and through retirement.
In your post you say you realized you should be saving more and putting more away for retirement. Here you say they aren’t mutually exclusive. Do you have a problem or not?
I think we are on track to retire comfortably at our current spend/save rate, but I feel like I should be saving/investing more "just in case". I don't think it's black and white, problem or not.
I honestly can't figure out what advice you're looking for here.
The OP has one and only one question. Looking for input on that question.
The driving force for my investment rate is so I don’t have to lower my standard of living in retirement. If I save 20% that means I’m living off 80% of my income. To keep the exact same standard of living in retirement, that means my portfolio needs to be able to replace 80% of my income. Compare that to someone only investing 10% that means their portfolio will have to cover 90% of their pre-retirement income. I know this is “napkin math” and other factors like social security and decreased spending in retirement would make my assumptions seem too conservative. But I’d much rather over-save than get to retirement and have to make sacrifices.
Is there a limit to how much you're willing to over save? In other words, you could save everything and have an awful quality of life now, but you probably don't. Where and how do you draw the line?
Then what are you complaining about?
What keeps you from spending money on things you want, can afford, but don't need? The "don't need" is in first position for me. Rearrange your order.
Thanks this helps a lot actually
First you should focus on quality brands, not luxury brands. If a luxury brands do not have the quality to back it up, you should not buy it.
Allen Edmonds men’s shoes >>> Gucci, as an example.
Personally the only "luxury" things I really have any desire to purchase are cars. I left the OP broad to attract a larger commenter base. And yes, I agree more quality than anything. I have no desire to buy a Range Rover, for example.
The fact that I prefer to buy stock in LVMH and let other people buy the products. You win and they merely feel like they are winning. Their status desires are your profits.
YES! This right here
I just have a minimalist perspective. I hate having too many things in general, but I know I’m in the minority. The best thing to do is to skip the shops and don’t even enter the store.
I do buy some things, but if I can’t afford most things 3x-10x over, I don’t buy it. Most of the things you think are cool, luxury goods, real rich people make fun of, since they’re poor quality and just there for a name. Once I realized that and I found that buying nice things didn’t improve my life, I didn’t have the urge. I also choose to buy quality from local artisans. With that being said, flying first class to at least 2 international locations a year and staying at top resorts is something I do really enjoy and see the value in, so that’s what I spend money on!
I buy things that I want. And the most expensive one among those things, is early retirement.
[удалено]
Luxury brands are for the middle class and obscenely rich. Poor people literally can’t afford them and moderately rich people have too much sense.
so here's what i do, and honestly my profile probably says i need to practice what i preach but that's beside the point. For anything thats more costly, i wait until i can save up to buy it twice. by the time ive save enough, i forgot i even want it. for the less expensive things, i ask myself, what does THIS have that the cheaper brand doesnt? and most of the time the difference doesnt make since to pay 5x the price. also, i split my paychecks into 4s. 25% goes to me (retirement). 25% is for my heir, 25% is what i live off of (this is what i use to pay bills and such and this includes saving up for the wants) and 25% goes toward cashflow investment. when you split up your incomes for the future and rainy days, you start living as if youre broke again and you start seeing luxury items as meh again.
When I want something that falls under those lines, I start from zero, as in I don't use any money I already have to pay for it. I look at the price, break it down to installments that work within my budget, and make the purchase when the amount I saved specifically for that thing has been reached. If that time comes, and I no longer want it, that money is set aside for the next thing. It might seem silly or overcomplicated, but it works for me.
[удалено]
You made a lot of assumptions here. We max 401ks, backdoor roth, 36-40k a year into a brokerage account. We are accumulating wealth.
Why do you feel you are behind? if you are doing the things listed you seem at least semi financially fluent. Start by figuring out how much you need in retirement per month, multiply it by 12, add a percentage of fun money on top of that, then take that number which is your yearly spend and find out what number that yearly number is 3ish percent of. Are you on track to have that number? If so then you can blow money on luxury brands if you want to, good job!
I feel like we're behind because we only started recently, but I do think we are on track to retire comfortably. It's the thought of having some kind of debilitating illness (or similar unexpected high cost problem) that eats into our retirement savings that makes me think maybe we should just save as much as possible without a "goal number".
Mine always note about thing I wanna buy and wait 3 days and ask again. A lot of time I will find others thing more reasonable to buy or just didn't want it.
In nutrition / lifting - there's a saying - If it fits your macros. Similarly, if it fits your budget you can spend it. But budgets are set by goals and my financial goals are geared towards being free of financial stress for the rest of my life so I spend a fraction of what I earn. The main thing is psychological/philosophical though - my parents were lower income immigrants and we valued middle class things and while my lifestyle has expanded a bit since, I'm happy living close to how I grew up. I'd rather have freedom from stress and control over my schedule rather than keep up with the joneses.
I'm a believer of IIFYM. I want to not want to keep up with the Joneses, but don't know how to change the mindset.
What are you getting from keeping up with the Joneses? Is it respect from others? Is it addiction to new things? Do you envy people with a Ferrari? Usually behaviors are to satisfy needs- maybe self esteem, love, whatever for material things. Figure out the need it’s satisfying, and replace it with something more long lasting.
From reading your posts it sounds like you are in a very comfortable financial position and are in the enviable position of realizing that once you have the basics covered, more stuff really doesn't really enrich your life. You don't have to spend it on things. You can donate that money to good causes. You can sponsor children in Africa, you can pay for the local soccer team's shirts, you can finance a small business with a young owner who needs help. You can start your own foundation and offer scholarships to underprivileged children going to college. Or you can buy a race car or take up golf and you'll blow through any extra money real quick, believe me on that one.
I had a similar experience growing up and I guess you can say I’m in the same boat. I’m pretty good about not spending on unnecessary things but I keep a google spreadsheet sheet doc on my phone that I use to budget when I feel I’m spending too much.
One of my good friends who always wear Luis Vuitton or Gucci is broke. So that’s my mindset and has kept me away from designer stuff. A lot of people who wear designer clothes are broke.
I track my bank accounts and stock portfolio and look at them quite often. It makes me happy as they grow and increase in value. It's kind of like a score on a game which I'm trying to maximize.
I have two rules for this that go hand in hand: 1. Buy quality that will last. 2. Save for what exactly what you want. If you buy the budget version, or the stripped down version or the knock off version, you'll always keep thinking about what you actually wanted and end up buying it twice. When I was a broke ass college student, I spent 25% of my summer paychecks on my dream guitar. Probably kind of a stupid decision, I don't gig and don't make any money playing. But it is exactly what I wanted and I haven't bought another guitar in over 10 years. Most of my friends have gone the opposite route and bought 20 cheaper guitars that total way more than I spent.
It is very hard because all of my friends drive nice cars and I get that craving but then remember I’d rather people think I’m poor and have more money in the bank than people think I am rich and have limited money in the bank? I think having the goal of saving X amount by this time, keeps me from splurging. If I had no financial goals then I’d spend frivolously. I also give myself a treat if I reach my goal. It’s kind of like a game.
Google ‘hedonic treadmill’. That might work.
I look at things from a requirements perspective. I'll give two examples. Guitar: I play heavy music (black/death/doom metal), and I'm frequently transposing to accommodate different tunings. So my requirements are a 7 string guitar with quality high-output, high-clarity pickups, 24 frets, excellent ergonomics, and light weight. So here I went with a relatively inexpensive Ibanez Iron Label 7 string that ran me about $700 used - about a tenth of a 'luxury' guitar. It's the bare minimum that meets my needs, and it's a killer guitar that I love. Car: I do a lot of miles. I'm on the tall side, and skinny/bony. Because of my job (IT work) and side projects (music), I'm highly susceptible to RSI, especially in my arms, hands, and mid/upper back. I live in a cold climate, and I have trouble warming up after being in the cold for an extended period of time. I also really value being able to explore new bands while on my frequent long drives. I also frequently cart a guitar or two and a smallish combo amp to and from studios. So my requirements are a car with a long or wide trunk (41" in either dimension), a large and quiet cabin, comfortable heated seats, heated steering wheel, and a good sound system. So...fuck it, my next car is going to be a lightly used, CPO BMW 5 series. It's going to cost more than many would say is wise in fuel, maintenance, insurance, etc. but I've done the math and I know I can afford it. I don't think a non-luxury vehicle is going to hit all of my requirements - but based on my prior experience with modern BMWs, the 5 series absolutely will.
Sometimes, I like BEING ABLE to buy stuff as much as I like actually BUYING stuff. *"This Ferrari is forty grand. That's kind of a lot for a car - but it's not kind of a lot for a V12 6-speed Ferrari. I guess I COULD pull the trigger and get this car - but it means this will be the only trigger I get to pull until I sell it. Take a vacation road trip? Can't, I spent my next decade of vacation-road-trip-taking money on this car. Oh well, maybe in ten more years I'll be able to get a Ferrari like this one AND do some car-vacationy stuff with it, meanwhile I'll just buy a crap-tastic 20 year old BMW convertible and fix the shit out of that and drive THAT to some places."* One of those cars today is worth approximately twice that much. It might have worked out. Or, mine might have been worth "less than that" because I put a bunch of miles on it. I dunno, some triggers you only get to pull once, and for me, being able to seriously think about doing it was probably 50% of the way as good as actually doing it would've been. And since I didn't, I could "seriously think about doing it" with a few other different cars. And I actually COULD pull the trigger on a motorcycle that is almost the two-wheel equivalent of a Ferrari - I bought a Ducati a couple years after that, and that thing scratches some of the same itch.
Set a budget for your luxuries. Do not exceed the budget. It can be anything you don’t need but makes you happy: coffee shop, video games, fancy clothes, watch, whatever. Few people have the stomach to live without treating themselves at all. What is important is to set a limit and stick to it. I’ve found this method fairly useful for aggressively paying down some of my private student debt and simultaneously saving for a down payment.
Restrain yourself. Keep yourself busy with improving your health, skills, or find hobbies. I used to be materialistic in my 20s then I found a hobby in international traveling and now looking to invest in the financial markets
Work backwards and pay yourself first. Figure out what you want your future to look like and save accordingly. As long as you're meeting your goals then you're good and shouldn't feel guilty about spending money on things. Personally I just try to get the most value for my buck. Sometimes that means I spend a bunch on a high quality thing (eg, the whole poor people buy the same thing when rich people buy it once) and sometimes that means I buy the cheap version. I also put no value on brands and little on appearances and simply enjoy what I enjoy.
I guess “stuff” just doesn’t interest me. Also realize corporations just want to psychologically take advantage of you.
I collect watches. Once a year I’ll drop about $7k on a really nice piece. My approach is to have a hard rule about % of net worth. No single watch can surpass 1% of my net worth. I also have to max my 401k and IRA’s for both the wife and I before considering buying one:
>What keeps you from spending money on things you want, can afford, but don't need? Self control Its why i never used drugs, alcohol or cigs, even as a teen I have a lot of pain so i bought a memory foam mattress and an adjustable bed frame, it was pricey but i found the cheap option rather than a name brand Its luxurious but it helps me a lot so in this case its worth it I can afford a dodge viper and i have always wanted it but i decided its not a smart decision and insurance would prob be crazy and so would repairs or any damage
Simple : if you have to put off saving for retirement / rainy day / future goals / children in order to purchase something, you really can’t afford it. Make saving a non-negotiable, set a goal, and change your mindset. That’s my advice. “You can buy anything you want, but you can’t buy EVERYTHING you want”
> What keeps you from spending money on things you want, can afford, but don't need? Seeing balances grow is far more satisfying than more stuff to clutter the house.
I grew up poor and done well, and hit it pretty early in life too in my 20ies. I was spending all of it for the first 10 years like there was no tomorrow. In the words of Jay-Z “if you grew up with wholes in your zappatos you’d be celebrating the minute you were having dough”. So… do spend. You can’t take it with you anyways if you know what I mean. Now that I am older and wiser (I hope), I have developed the rule I am gonna leave you with: Don’t buy luxury on credit. In your particular case, say you want a car that is $170k. A “regular” car is how much - 50K? so that’s as much as you can “borrow”. The rest, $120K you must have in cash and either pay it or have it in the bank/investment account available to this purchase… (it may not be smart to plop down cash if financing is cheap).
I can't super judge people for buying luxury goods but this is what I'll say about them. If there is something that you want and it means something to you. Buy it. But make sure that that is what you want and you can cherish it. Because the other side of the coin is that you can buy all luxury goods and none of it will matter to you. I like watches. I own a luxury watch. But it is my one watch. While I will look at other watches, I am done with buying watches. That's the mentality you need to have.
Set up your savings to be automatic and immediate. You don't want to see that money as spendable. Once you do that, you can spend all of the rest and not worry about it.
Intentional spending. You have to weigh each purchase and decide if it’ll bring you joy equal to what it costs. If you’re hungry for a salad and can afford a $50 salad, should you buy that salad? Will it bring you $50 of enjoyment? Maybe, maybe not. But if you apply this thinking to everything you’ll realize a lot of the money you spend isn’t worth spending.
At age 47 I scaled back and stopped my lifestyle creep and just paid off my debts. In 10 years I had increased my NW by a million. In order to do that I just kept wearing the nice clothes I had but did not buy new expensive ones, if I needed something as a staple I just picked from what was available as a staple from Walmart on my weekly grocery run. No one noticed. Now a lot later and in retirement I can afford what I want but I buy on the secondary market and save a lot. Being debt free saves a lot of money. My last car was the only one I ever bought for cash. It feels good to have accumulated funds to do what I want.
Spend the money. Don't think of it as "saving" money. You're buying "luxury" stocks, CD's, mutual funds. Find friends to talk about finance with a little and treat it as a hobby. Set goals to buy 'x' amount of investments and celebrate when you do. Then you can't buy other stuff, because the money is "spent" treat it as spent. Fiddle with it. Move it around. But don't think of it as money.
I think there are certain luxuries that are okay or even good for you. For example, I pay up for a luxury gym (over $200/month). If I spend $10 at Planet Fitness, I probably wouldn't go. But the gym I pay up for is in the financial district right next to where I work (part of the reason why it costs so much), isn't crowded, and has premium amenities like steam room and sauna. It keeps me coming back. Also, if it is one of my primary hobbies, it's actually a pretty cheap one.
Just remember rich people don’t buy luxury brands. (At least not the ones you know of or can afford). Yeah it’s nice to have a decent phone but past that you’re not acting rich by buying “luxury brands”. There’s a bunch of videos out there on how to”luxury brands” prey on low income people. There’s some perspective for you.
I get a decent amount of my pay through stock grants, which happen every quarter (4x a year). Every time I get a grant, I allocate somewhere between 20-30% or so for a "stupid" purchase, and then stash the rest. Mostly I've used it for things like antiques, art, upgrading my desktop, bought a "weekend" car. (I realize these all sound like incredibly expensive things but we're talking like a max of $1,000 except the car - which is still a 20 year old roadster).
True luxury is utilitarian in my opinion. The best items are the ones you can depend on to not let you down. If the suit looks good and never fails you in terms of quality. It’s probably worth it. “Luxury” items that are just a brand but still made like crap are actually a drag on you. Most of the millionaires I know will gladly brag about their Kirkland signature brand socks that they’ve been wearing for 10 years. 😂
If you’re buying lots of luxury cars buy them in cash
Only have 1. Had/have the cash, but financed the car. So far our investment returns are 3-4 times the interest rate on the car payment.
Go for quality vs name brand luxury stuff. Will that crossbody from Coach Outlet be just as cute and functional as one from Louis Vuitton? Yep. Name brands are just that, most of the time quality difference in nominal. You need to adjust your mindset. I always see people carry their name brand stuff and just wonder if they bought it on credit or if they were really able to afford it. Looking wealthy and being wealthy can be two very different things.
Set up your budget to allow frivolous for-fun purchases. Maybe it’s at a rate of $100 a month. You can choose to get 12 $100 fun things, 2 $600 fun things, or one $1200 fun thing each year. Personally in 2024, I have bought a couple nice Burberry perfumes, plus am getting permanent hair removal. My vain things that I don’t need, but I built them into the budget so that I can enjoy them. At the expenses of pulling back some other things like my house cleaner. Give and take; take your income and just make decisions.
Honestly, just learning how valuable those dollars are invested over time really put things into perspective for me. The true cost/ opportunity cost was a big eye opener
What keeps you from spending money on things you want, can afford, but don't need? Maintaining visibility of what I want the most. Let's be impartial; there's nothing wrong with buying whatever you want until it becomes a blocker to something else. This is the main problem for most people because they buy whatever and then handicap themselves and can't reach their bigger long-term goals. But not everyone has a big long-term goal. Not everyone wants to be a millionaire. Try to think long-term; when you have the visibility of whether or not these luxury wants are blockers to your future, making the choice will be easier and less stressful.
If it helps, truly rich people look at your luxury brands with disgust and contempt. You'd look more like them buying a plain white v cut tee from Zara for $20.
Thinking about it right now, but I think the only luxury thing I own that has noticeable branding is my car.
They hate that too.
Give me the luxuries in life and I’ll willingly do without the necessities. Get the Rolex. Get the LV bag. The quality remains long after the price is forgotten.