As I write this article I acknowledge that I’m talking to me first. I have a birthday looming, and in talking to my husband about gifts I heard the words “Louis Vuitton” go flying out of my mouth without thinking twice. He looked at me, gave a few blinks and moved on, which for me was a silent reply of “keep dreaming” when it comes to the bag I have in mind. After all, we have a mortgage and tuition for our son’s school every month. Could he squeeze a Louis bag in there one month for wifey? Of course he could – but why would he when that same money could go towards a romantic trip out of town, an iPad, or a third of it used towards bolstering our savings and fixing up our house? Furthermore, why would I even expect it?
Because I, like so many of us, am a conspicuous consumer. I buy because I want things no matter the cost. I also know certain high-priced items will get noticed – and I’m looking forward to receiving your compliment.
Don’t get me wrong: if one has the disposable income and the accoutrement of wealth-building, such as retirement accounts, solid investments, and a home and that $1000 is just a drop in the bucket then by all means, shop on. But for many of us this isn’t the case. We push $75,000 cars, wear $800 shoes, rock $1500 handbags – all of which finds itself housed in an apartment where we hand over checks monthly to enrich the bank account of somebody other than us. Rent plus what we’ve spent on these material goods equal not only a down payment, but a few mortgage payments as well. Those of us who do own homes want to continue to live the way we did before our monthly home expenses tripled, but doing so might get you one step closer to foreclosure.
Now I’m not saying everybody needs to run out and start rocking Kente cloth – but the next time you go to swipe your credit card on that purchase or establish new credit to buy something that is a bit outside of your spending limit, ask yourselves the following questions:
Why am I buying this?
Is it truly something I can afford?
If it’s stolen or lost will that break me?
Do I need it or can I live without it?
How much money is in my savings account?
What other options exist for me to put this money to better use?
We never know when a rainy day might come, and that Louis bag won’t fill our empty bank accounts.