Buying Luxury Products – Part 1

Are you addicted to having only the best?

Luxury brands are marketed to the middle class. It’s a growing market due to the adoption of digital channels and the expanding global middle class. The majority of purchasers earn less than $168,000, and their average net worth is under $100,000. The wealthy buy assets that grow in value or increase their cash flow. They buy freedom, not status. They use money to create options, not to impress strangers. They know that money should work for them, not the other way around. Assets generate income while liabilities generate expenses.

Luxury marketing is aimed at shoppers who want to feel wealthier, cooler, or more successful than they can actually afford. They’re willing to go into debt for it. The most common purchases include designer clothing, handbags, jewelry, watches, and cars. Couple this with a growing demand for “luxury experiences.” You see, luxury items are associated with strong emotions. Buyers believe that a higher price equals higher quality. They have a need for higher self-esteem or acceptance. They buy as a reward or a sense of accomplishment. Others buy to alleviate pain or sorrow. Rather than using common sense, waiting, and trusting the Lord, some people are caught up in the need for luxury. It boils down to what they believe about money, but buying what they can’t afford only adds stress to their lives.

Does this describe you? Ask God to help you be content with what you have or can afford to buy. Find your rest in Him, and if luxury purchases have led to excessive credit card debt, let Christian Credit Counselors help. They can create a debt management plan that can set you free. For more information, visit online at crown.org/ccc.