How to enjoy luxury without going broke
If you’ve worked hard for years, so you can buy luxury items to show off to people who don’t care about you, you may be wasting your time.
We all like something we don’t really need, and as long as you can afford to, there’s nothing wrong with that.
But that’s where many people go wrong. Being able to afford an item does not mean whether or not you have enough money in the bank, or enough credit to buy the item.
It means being able to buy the item, without it harming your financial situation, and being able to enjoy it guilt-free.
How do you do that? Here’s three tips on how I do it, with examples.
1. Buy luxury items that hold their value.
A fancy vacation can be an incredible memory, but you keep none of the money you spent.
A luxury watch is a different story. I bought this gorgeous Longines watch for 3300 USD, in 2021.
When looking online, it still retails for 3000 – 4000 USD.
I have essentially worn and enjoyed this watch for 4 years, and I could sell it for about the same money I bought it for.
Keep in mind, I could have put that money into the stock market and likely seen it grow. Most watches are not going to make you money. But the key is finding a balance between enjoying yourself and being responsible. This watch didn’t make me wealthier, but it barely cost any money.
2. Buy second hand luxury
The moment you drive a car off the lot, is when it depreciates the most. After about five years, it will still depreciate but very slowly. Let other people eat the cost of depreciation. A five-year old car, watch and most luxury items will still feel like new and give you the time of your life.
This is my 2010 Ferrari 458 Italia.
It’s 15 years old, but it still looks incredible and it’s fast as you would want any road car to be. This model is desirable because of its noise and engine. These cars have actually increased in value, over the last five years.
I can drive this car with maximum enjoyment, without eating depreciation. Just don’t crash it.
3. Only buy luxury items you are truly passionate about
When you start making the big bucks, it’s tempting to expand your lifestyle by buying things you don’t need.
Instead, ask yourself what you are truly passionate about, and spend a bit more money on that passion.
If you love cars, buy a nicer car. But if you don’t care for fashion, do not buy expensive clothing, just to impress your friend.
Buy it only to make yourself happy.
I started playing piano in early 2024, and a keyboard simply wasn’t very exciting to play on.
So I spent some money on this Yamaha piano. It cost me about 16 grand.
In ten years from now, I can sell this piano for roughly 14 grand. That means I spent 2 grand on it in ten years. That’s less than 20 dollars a month. For the price of a Netflix subscription, I bought a piano that unlocked a new passion I will carry with me for life.
Luxury can send you broke or trap you in a toxic mindset of always having to buy the next best thing. You will never win.
Buy luxury items, ideally second hand, that hold value well, that you truly appreciate. That way, you can enjoy the finer things in life, without being stressed about whether you can afford it.
Have you made big purchases and regretted it?
If you’re ready to make smarter purchases, let’s talk.
I’ll help set you up for financial success. So you can enjoy life, without all the stress.