June 6, 2021

The Subjectivity Of Luxury

Have you ever read about a billionaire spending a “crazy” amount of money on something “stupid”?

Like maybe a super yacht or a private island or an iconic oil painting?

Yeah, me too.

Now lemme ask you this...

Have YOU ever splurged on something?

Have YOU ever treated yourself?

Have YOU ever bought something that somebody else would consider extravagant?

Have YOU ever not bought the cheapest option, and then told yourself a story about why the more expensive one was actually a better deal?

Yeah, me too.

Here’s the thing...

If you drink Starbucks coffee or have an iPhone or wear Nike socks or own a pair of jeans that cost more than like $10, somebody somewhere thinks you’re crazy for throwing your money away on something stupid.

And you would disagree with them because you have your reasons.

Just like the billionaire would disagree with you because they have their reasons.

Value. Is. TOTALLY. Subjective.

There is no right or wrong when it comes to what someone is willing to spend on something.

What they’re willing to spend is what they’re willing to spend.

Value is a function of three things: desire, buying power, and availability of options.

Other people’s “luxury” purchases are simply things that you don’t want or that you can’t afford or that have a cheaper option that is acceptable to you.