Is the allure of luxury, driven by prestige, status, and higher quality a sophisticated scam?
e.g.: High rates of consumer debt in America – Total credit card debt for the fourth quarter of 2023 was $1.129 trillion.1
★FIND A FULL BLOG POSTS HERE
➤www.sheiscallednv.co.uk/2025/01/13/the-fast-fashion-phenomenon
➤ www.sheiscallednv.co.uk/2024/10/03/chanel-why-are-you-like-this-the-2024-price-hikes-explained
➤ www.sheiscallednv.co.uk/2023/08/19/haul-2023-mugler-loewe
Hype. Price increases. Fomo. A private sale. Instagram and TikTok influencers. Limited availability. Retail therapy. A special, one off occasion or event… I have found many excuses to indulge in excess (not often, but sometimes). The idea of ‘self-care’ can be addicting, but I convinced myself I was somehow investing in myself to only then not use products I intensely obsessed about. These are beautiful and lovely pieces however they still remain unused for whatever reason. Although on occasion it’s best, in the moment, to admire from a distance, turn around and walk away rather than to own ANYTHING which is collecting dust in the garage, in the storage cupboard, or just left unloved and kept in it’s packaging etc. In this video I reveal the horror stories and the dark side of purchasing, owning and using luxury fashion items and products (and then subsequently questioning my other life choices). Watch and discover what lessons the luxury fashion industy, influencers and my sporadic & intense preoccupation has taught me before and during 2025 so far…
Going broke to buy luxury goods is often driven by psychological factors, such as a desire for higher self-esteem, a sense of accomplishment, or a belief that higher prices indicate higher quality. While luxury spending can sometimes be seen as a status symbol, it’s crucial to prioritize financial well-being and avoid accumulating debt for non-essential items.
Here’s a more detailed look in to this phenomenom in the 21st Century:
Why People Spend Above Their Means on Luxury Goods:
Luxury goods can be seen as a way to signal social status or improve one’s self-image.
Belief in Price-Quality Correlation:
Some believe that a higher price automatically means a higher quality product, which can lead to spending more than they can afford.
Irrational Spending:
Sometimes, purchases are made impulsively or due to a temporary emotional state, leading to overspending.
The “Need” for Status Symbols:
In some cases, luxury items can be perceived as necessities, especially for those who feel insecure about their social status, as seen in a video on YouTube.
Financial Consequences of Overspending:
• Debt Accumulation:
Using credit cards or taking on debt to purchase luxury items can lead to financial strain and difficulty paying off bills.
• Missed Financial Goals:
Overspending on luxury items can hinder the ability to save for important goals like a down payment on property, retirement, skillset or self-development and/or other investments.
• Reduced Financial Security:
Living paycheck to paycheck due to luxury purchases can make it difficult to handle unexpected expenses or financial hardships.
Alternatives to Luxury Spending:
• Prioritize Needs Over Wants:
Focus on essential expenses like accommodation, groceries and transportation before considering luxury items, goods, services or experiences.
• Set a Budget:
Create a realistic budget that allows for discretionary spending while still prioritizing financial goals.
• Consider Alternatives:
Explore affordable alternatives to luxury goods, such as vintage or thrift store items, or focusing on experiences over material possessions.
• Seek Financial Advice:
If you’re struggling with overspending or debt, consider seeking advice from a financial advisor.
In Conclusion:
While luxury goods can be appealing, it’s crucial to prioritize financial well-being and avoid spending beyond one’s means. By understanding the psychological factors behind luxury spending and developing healthy financial habits, individuals can make more informed decisions and achieve long-term financial stability.
