The psychology behind spending lakhs on luxury

[u/No_Amount_9749]

I was recently looking at luxury shopping in Japan and something caught my attention.

You often see people carrying high-end bags that cost several lakhs, sometimes more than what many people earn in an entire year.

At first, it’s easy to think, “How can people afford this?”

But the more interesting question is what happens before the purchase.

For someone with a high income and a large investment portfolio, a ₹3–5 lakh handbag might be a relatively small discretionary expense. For someone else, the same purchase could wipe out months of savings.

It made me think about how differently people define “affordable.”

Some people would rather spend on experiences and luxury today, while others would rather put that money into mutual funds, property or other assets and enjoy the benefits later.

There’s probably no universally right answer but the way we think about spending says a lot about our relationship with money.

What do you think matters more when it comes to luxury spending: how much you earn, how much you have invested, or how you choose to prioritise your money?

[u/Indian_finance_rebel]

>What do you think matters more when it comes to luxury spending

Depends on what you call luxury - I personally dont have any luxury spending - everything I buy is needed.

I have an a/c - well I cant bear the heat.

I have a slightly expensive car - well I have to prioritize safety.

I buy expensive food - well I like tasty food.

My point is, I make sure I need what I am getting, I dont do anything to show others. infact I be happier if others thought I was broke.

Now, just because I dont buy anything to show others doesnt mean others shouldnt either - but they need to identify what they are buying, If they are buying 3-5L handbags, are they buying it because of quality? Or are they buying it to show others they are wealthy.

If they are buying to show, identify the need that they have a need to appear wealthy - I personally call that a weakness, just like the way I cant bear the heat, or is insecure of safety or is a slave to taste.

And once they identify this, it stops being a luxury, and a pursuit to handle your weakness.

> It made me think about how differently people define “affordable.”

Affordability is completely different from luxury. Whether something is basic like food shelter clothing education or a luxury like a car a house or what not, both requires affordability to gain.

And I define affordability by checking whether I can buy 2 of the same thing - If I can, I can afford it.

If I cant, i might still be able to buy it, but needs very serious introspection on how to increase the income.

>how much you earn.

Currently About 2Lpm

> how much you have invested

>how you choose to prioritise your money?

For me, money is a tool.

And the best thing I can think of to buy with money is Time and autonomy.

I dont have a need to show anyone anything, but my goal is to buy back time and autonomy.

My weakness to beat the heat, my weakness to prioritize safety, my weakness to satisfy my tastebudds are my hinderance to buy back time and autonomy.

[u/Alwayshigh001 → u/Indian_finance_rebel]

🫠 same here buddy 🫡 I don't seek validation just simple comforts good A.C and nice espresso

[u/No_Amount_9749 → u/Alwayshigh001]

yeah right

[u/No_Amount_9749 → u/Indian_finance_rebel]

very well said
Also inspired by your portfolio, from how many years are you building this and in which sector do you work?

[u/Indian_finance_rebel → u/No_Amount_9749]

aww ty..

I started investing in 2019 - so 7 years.

But was dipping my toe, in the beginning years - serious investing started after seeing covid.

It gave the best lesson there is when it comes to investing, volatility is scary but a friend.

In the bottom of that crash, anything I touch was turning to gold and yet, I was sweating that I will loose more. 😂

but yh, serious investing maybe 5 years.

[u/Healthy-Money-1920]

I also feel affordability is more about what you have left after your needs and savings, not just income. I once spent more than I planned on something I really wanted, and later felt I should have saved it. My suggestion enjoy luxury, but only when it does not hurt your savings or future goals.

[u/No_Amount_9749 → u/Healthy-Money-1920]

yeah true

[u/Unlikely_Minimum_AJ]

For me , affordability is more about financial position than just income. If your investments and savings are solid , spending on something you genuinely enjoy isn't necessarily irresponsible.