What Do People Do to Afford Such Life?

Wife wanted to go get a $2,000 watch.

I don't usually get her anything so I thought yeah I will get her something special this Valentines. Drove to the CBD and saw a long queue outside Hermes, LV, Chanel. My wife told me there was a even longer queue outside Rolex. And my wife told me the purse and bags etc would easily cost $5k and above.

I thought everyone would be cutting back on expenses given the uncertainty but where are all these people getting money to spend on discretionary luxury goods? Not saying it is bad but where do these people do to be able to afford such luxurious lifestyle. To put it in perspective, I wear a Hush Puppies t-shirt (was a gift) and a brand-less short pants, I have been using iPhone 8 with shattered screen for 1.5yrs now. Been living frugally since entering workforce and I still feel I am very poor. When I step outside my home, my personal belongings on me might be worth $100-$200 max.

Any idea anyone?

Comments

  • In reality, most of theses people probably don't have enough money to buy these things outright so use things such as zip to pay in installments

    • Never understood that. Buy if you can afford.

      Work hard and a $8000 watch isn't that much money to spend. The price of 2 or 3 holidays.

      Only things I ever got loans for was cars and houses. Then worked to pay them off (well I keep leasing cars because it works out well and I enjoy cars).

      I can't think of anything worse than being on a loan payment for a watch or handbag. Must feel odd. Unless it's a holiday - I did know someone who took loans for holidays. Must the the worst feeling paying for something after it's happened.

  • It's not really that complex. People no longer can spend $5k-15k on those eurotrips so they can afford luxury items. Savings rates has gone up like 2x since the pandemic started on average

  • lot of people living on credit or paycheck…but there is also a large amount of people that are rich, wealthy and earn way more money then we ever will