Reply to Your income, HHI, and spending on “luxuries”

Forum Index » Money and Finances

Reply to "Your income, HHI, and spending on “luxuries”"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Our HHI is around 800K.

I think it's important to realize that certain luxury brands hold their value or go up in value, so I treat these as investments not as expenses.

For jewelry, Van Cleef and Cartier hold their value very well. For bags, the classic Chanel flap bag and the Hermes Birkin (if you can get your hands on a new one) have appreciated at the same rate as the S&P 500.

So it depends... would I "waste" $2500 on a Gucci or YSL bag that will lose more than half its value in a year? probably not, but I will save up for a small piece of Van Cleef jewelry for $5000. [b]The former is an expense, the latter is an asset.[/b]

[/quote]

Someone drank the kool-aid [/quote]

I don’t know…do you treat a car as an asset (ie something that has residual value) or an expense (something that has essentially $0 resale value).

I don’t expect to make a profit on a car (even though during the pandemic there were many used cars worth more than the new purchase price), but I do expect to be able to resell the car for 40-50% of its new car price.[/quote]

A car is a necessary liability in my spreadsheet, as is a large primary home with a mortgage.  A large primary home, even if it appreciates, costs money to maintain.  Once the mortgage is paid the value of the home is part of my NW, but the costs are still a liability.  Cars are similar.  I wouldn't bother reselling luxury items, like a handbag - I have no time to get pennies on the dollar for small value items.  Obviouslyi dont own a birkin, because some of those are more like a car.  The few that I have when I'm no longer interested get donated or given to my daughter.[/quote]

You are all over the place.  How is a $1MM home with no mortgage a “liability” especially if it is increasing say 5% a year in value.  I mean you have to live somewhere, so if you aren’t paying taxes and maintenance you are still going to have to rent something.

[/quote]

Does it make money for me? No
Does it cost me money to maintain? Yes
Simple 
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics