Living a luxury lifestyle is something that many of us strive for, but when does the desire to live luxuriously end up having the opposite effect? Here are 15 luxury traps that could put lives in a worse position than before, living what might be considered ‘luxuriously.’
The Debt Spiral
If living a luxurious lifestyle means getting into debt, it’s probably not a good idea. Plenty of ways to live luxuriously don’t involve taking out any form of lending, and it’s worth exploring these options first. There is nothing luxurious about having debt that is spiraling out of control.
Impulse Buying
Resist the allure of impulse luxury purchases. If tempted to purchase a costly item, ask yourself, “How much use will I get from this item? How long will it make me happy?”
Keeping Up with the Joneses
Many in today’s society can feel the pressure to compete in the luxury race, whether that is with your home, car, or smaller possessions such as shoes and watches. It’s important to buy things that make you happy and that you can afford rather than items to keep up with friends, colleagues, or neighbors.
Hidden Maintenance Costs
Luxury goods often come with high upkeep expenses, and it’s critical that buyers of luxury items are aware of this before making big splurges. If you cannot afford the maintenance costs, you might want to think twice about buying the item.
Overlooking Quality for Brand
Avoid purchasing items just because of the brand name, and remember the importance of quality over brand recognition.
Neglecting Retirement Savings
Consider how luxury spending can impact your retirement savings. If a large purchase hurts your retirement savings, it’s probably worth foregoing.
Luxury Rental Traps
Renting beautiful homes can feel somewhat luxurious when you are in them. Still, it’s fair to say renting a luxury home can become a never-ending expense when you consider maintenance, utility bills, and any additional expenses related to the property. Is living in a fancy home worth your financial stability?
Impressive but Empty Home
Avoid the trap of filling your home with expensive furnishings if it stretches your budget too far. Also, consider if it’s worth investing in a very large property if you cannot afford to fill it. Remember, an impressive but empty home is not much of a home at all.
Overpriced Subscription Services
The cumulative cost of multiple luxury subscriptions can slowly add up. Ask yourself, do you really need them all?
Luxury as a Status Symbol
Luxury is all about self-worth rather than net worth; and your self-worth is definitely not tied to your possessions.
Ignoring Savings for Luxury
It’s a bad idea when saving takes a back seat to indulgence. You never know when an emergency is around the corner that requires dipping into a nest egg.
Credit Card Debt
The dangers of using credit to fund luxury spending are well-documented. If you require a credit card to live luxuriously, you might need to re-evaluate whether you are really living luxuriously at all.
One-Time Wonders
Items you buy but rarely use are, ultimately, wasted money. The luxury of wasted money is a trap to watch out for.
Luxury Guilt
The emotional toll of luxury spending guilt can often be felt after making a large purchase. If buying an item will induce more luxury guilt than happiness, then it’s probably not worth buying at all!
Empty Social Experiences
When luxury social events don’t bring happiness, they are not worth the money spent attending or organizing!
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How to Live a Luxury Lifestyle
Discover how to live a luxury lifestyle simply by reading these ten easy steps that anyone can implement today. Remember, luxury has nothing to do with net worth and everything to do with self-worth!
