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

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[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]

Or keep it 10+ years and you can resell for only 20-25%, but you got several extra years of no cost use. [/quote]

Admittedly, we don’t put many miles on our cars…no more than 5,000 per year, so my residuals are probably higher vs years old.[/quote]

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