Bouncing Back

In Part 1 of this entry, I discussed how we often make luxury purchases to prove to ourselves that we are worthy and important in the world. In this next discussion, I'd like to show how these feelings progress over time, arriving ultimately at a place where we believe we're not only worthy of, but actually entitled to, all of the best things in life.



Let's review our daily experiences relative to luxury items. We're bombarded on TV, in movies and in magazines with images of the beautiful people who have it all. They have fashionable and expensive clothes, an expensive car, vacations at world-class resorts, an exceptional home, and the best in home furnishings throughout every room. And, they're maybe 28 to 35 years old. OK, now realistically, have we even thought through what one of these items costs? A designer outfit at $800... an international resort vacation at $3000... or one piece of exquisite furniture at $5000? Honestly, no one but the ultra wealthy can really afford all of these material goods. And, by afford, I mean the ability to purchase such items without causing harm to one's overall financial health.

But we're led to believe that anyone who matters should be able to have these things. And soon we're pursuing the purchase of these items we cannot afford... And so are all of our friends... And so is everyone we see around us! This has the effect of reinforcing our belief that anyone who matters should be able to have these things. Then, after awhile, we may begin to feel the effects of our poor financial decisions. But our feedback loop continues to tell us that others can afford these things, so we should be able to also! Thus, we have arrived at entitlement:

I am ENTITLED to all of the best of the best, just like everyone else I see around me! I will ignore the naggings of financial reality and full steam ahead! Surely everything will be OK, because I'm only doing what everyone else is doing!

When we have reached the state of financial entitlement, disaster is most likely just over the horizon. Money is a finite resource. When it's gone in all of its variations, including our savings, credit lines, home equity, investments, etc., then it's really gone. There is no easy out or safe landing. There may only be bankruptcy, foreclosure, or drastic reductions in lifestyle (if you're lucky).

This is why I believe that conspicuous consumption is a dead-end road. The purchase of luxury items does not make you a worthwhile person; it never has and it never will.

But let me conclude on a lighter note. I actually believe in the purchase of some luxury items. We work hard these days and have many responsibilities. By all means, help yourself to luxury items that bring you real pleasure. If you love your morning Starbucks and you can afford it, then go for it! Just don't be fooled into also buying luxury lotions and luxury light bulbs and luxury grass seed and luxury gasoline and... well, you get the picture! Use luxury items to bring yourself real pleasure, not to prove your self-worth to yourself or to anyone else.