Chanel classic flap in black (large)
This blog is titled Poor Party Girl and my catchphrase is Entertaining and living fabulously on a Budget. One might think my goal is to always buy the cheapest versions of things and never making luxury purchases. But it’s not. In fact, my whole aim is to be able to live the way you want: travel, entertain, eat and shop no matter your budget. It’s about being savvy vs plain old cheap, it’s about saving here and there so that when you want to make a more expensive purchase, you can.
This brings me to today’s topic; making a luxury purchase. Let us begin with a definition of luxury. Luxury is defined by Investopedia as an item which is not necessary for living but is deemed as highly desirable. Luxury items are associated with a certain status as they often signify some measure of financial success. Additionally, some luxury items are subject to “luxury taxes” though it varies depending on where you live. Luxury items may be anything from private jets and recreational boats to designer handbags and shoes. For my purposes, I am referring more to smaller luxury items but certainly this can be applied to any luxury purchase.
Maybe it’s a Chanel classic flap in black caviar leather or perhaps it’s a pair of Valentino Rockstud heels… we all have those dream items. The ones that merely seeing a picture of them ignites a spark in our stomachs (no I do not mean heartburn, lol). We also have that moment when we see the price and get that sinking, dreadful feeling.
Depending on our age and stage in life we have varied budgets, indeed there are things I can easily purchase now that four years ago, would have been a fleeting wish. However, we are all on some kind of budget and luxury purchases are often the last thing we think to buy and we often cannot afford to stroll into a department store and pick up the latest designer handbag. Oftentimes those who do find themselves either with significant debt or no savings. I’m sorry but I’m not going into debt over a handbag. So then, how do you make a luxury purchase while remaining on a budget?
I have some tips that I have accrued over time and inspired by luxury YouTuber Chase Amiee (a favourite of mine).
1)What Do You Want?
Make a list of all the luxury items you want. All of them: shoes, bags, clothes, car, boat, plane, basketball team. All of it.
2)What Do You Really Want?
Go through your list with a fine-toothed comb deciphering what you actually want. Do you really want those designer shades? Yes? then leave it. Do you actually want a Rolls Royce? No? then cross it off. What you should have at the end is a far more concise list of items that are more attainable and that you actually want to attain.
It may seem like an oxymoron to suggest prioritising a list of luxury items but you must do this. For example, if my list contains ten items I’m sure there are four or five that I want more than the others. Place these at the top of your list. These are the ones you will focus on first. By doing this you will find you may be able to narrow down your list even further.
Research all the items remaining on your luxury list. Research the company, the reviews, the cost. Making a luxury purchase can be viewed as an investment and you don’t make investments without doing some background checking.
5)Refine your list
After doing your research you may find your luxury item dream list is even shorter or has somewhat changed.
A few tips to use when refining your list:
If for example, you like to collect designer handbags as fashion pieces you may want to purchase something from a permanent collection rather than a limited edition. Even though many of us make luxury purchases planning to keep them forever, these are the types of items people often sell. You will generally get better resale on a classic item rather than a trendy one.
This is in the same vein as the previous tip. If you are spending two months’ worth of your salary on a pair of shoes, you want these shoes to last long and still look current. This is why choosing a more fashionable vs trendy style is better.
“All the Glitters is not Gold”. I swear, if I had a dollar for every time I saw that play out in real life, I would be able to buy all the items on my luxury wish list in one go. But I digress. Luxury items are often high quality, that’s what makes them so luxurious. All of the finest materials are used by the most skilled craftspersons to make your deluxe item. Wrong. Believe it or not, some brands charge disproportionately high prices for their items. I don’t get too upset when I get ripped off buying a drink at the gas station, but a luxury item is not the same as a $2 beverage. You want to make sure your purchase is what you are paying for especially if you plan to resell.
6)Make a Plan
Now that you have your list that you have tweaked and refined it’s time to get your life in order. You need to find a method of going about making your purchase:
Set a Time Frame
You need to decide over what period of time you want to make this purchase. This is typical goal oriented behaviour, you set the goal and work towards it. An example is 1 year. You can decide that over the next 12 months you will save up enough for a bag.
This is another way of setting a timeframe. You may decide to reward yourself with a pair of designer boots you’ve been eyeing for months when you complete your Bachelor’s degree.
Start a luxury savings account
That’s right. Open a savings account dedicated just to your luxury purchase. Put a designated amount of money e.g $50 a month into your account and don’t touch it until you have saved enough to make your purchase.
7)Making the Purchase
By the time you have saved enough for your dream item many weeks to months or maybe years would have passed. Reassess and determine if you still want to make this purchase. A lot may have changed. You may simply no longer want that item or there maybe something else you want more. You may decide to continue saing for a bigger purchase or even transfer the money saved to another cause e.g travel fund or mortgage payments.
8)Buy it and enjoy it
After much deliberation, planning, plotting, scheming and more deliberation you are ready. You have earned it and it will likely be another year or two before you can make a similar purchase. So do it and enjoy it. Walk into that store and let them serve you champagne and canapes. Have a glass of wine if you are purchasing online. Sleep with your item like it’s a teddy bear if you want to. Make your purchase with no regrets because you have worked towards this.
Hopefully these tips will inspire you to start working towards your luxury purchase whatever it may be. Have an awesome day!
Valentino Rockstud heel in black