Luxury Goods

I was thinking about luxury goods this morning as a couple really nice cars drove by as I was having a smoke (yes I know I should really be finished with this by now) and it struck me: When is it a good time to start buying some of the finer things in life? This is a completely loaded question since the answer in my opinion is all time within reason. I am a firm believer of treating yourself once in a while as long as it’s not going to be putting you into debt. I know there are some Personal Finance bloggers who will read this and want to scream at me and they are right to some extent. My argument isn’t that you should run out and buy the Porsche that you’ve been eyeing your whole life but for the smaller things, the little luxury items such as a nice dinner once in a while.

If you go through life without any niceties then you really have nothing to look forward to which is why I like the idea of making sure you treat yourself. I like the idea because it gives me motivation, it motivates me by letting me partake in an activity or buying an item that lets me see what it would be like if I had more money. A fancy dinner every two or three months lets me enjoy the ‘good life’ that I would like to have more frequently if I had the money. This doesn’t mean that I want to go out and have this type of dinner every day but there is a certain lifestyle that goes with being able to do this and that both motivates me and rewards all of the small sacrifices that I do each day to get myself out of debt.

Most people take vacations about once a year, even mentioning the word vacation will bring thoughts of palm trees or ski resorts to many people’s minds. This is exactly the type of reward I’m thinking of (but on a smaller scale). The same list of people that take these vacations contains lots of people who can’t afford that vacation but they would be able to afford going out to dinner once in a while. It gives you a break from the life that you have and lets you enjoy yourself as it you had the extra money just begging to be spent.

When it comes down to it we all have to be able to enjoy our lives, to have fun and to be able to say we lived. The idea of being forced to eat Mr. Noodles watching TV every day for 20 years because we’ve got a mortgage that we can’t afford makes me shudder. Don’t forget to live, the small luxury goods remind me that I’ll be able to do more of this when I get out of debt and really start going after acquiring wealth.

[tags]luxury goods, spending money, life[/tags]

3 thoughts on “Luxury Goods”

  1. the reason for having a budget is so you CAN spend money. budgeting isn’t only about saving money…i think this gets lost sometimes on these PF blogs. just budget the want items and enjoy.

    i just bought a way too expensive limited edition fountain pen that i’ve wanted for several years now. i budgeted for it and i am happy.

  2. I agree completely. There are a few things that I would like to buy for myself but I want to get a good hold of my debt before I start spending or even saving and planning for spending.

  3. I absolutely agree and I actually encourage my clients to reward themselves. Most people can’t just scrimp and save forever without splurging a little. It’s not that fun and you don’t feel like you’re getting any benefit from it. What I recommend is that people work those rewards into their goals.

    I use financial goals for almost everything I buy. If one of my goals is more than a year away I build a reward of some sort into my goal plan. For example, if my goal is to save up a $10k emergency fund, at the 1/2 way point, if I’m on track, I’ll treat myself to something small as a reward for sticking to my plan.

    It gives me something to look forward to and motivation for cutting back.

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