We’ve all been there. You’re walking through a mall, and suddenly, you see it like a mirage in the desert, shining in the store window: the perfect bag. Then you look up and realize you’re standing in front of a Louis Vuitton store, and that bag is roughly one month’s rent and security deposit for a Manhattan loft. Though you try to walk away and put it out of your mind, you just can’t help returning to the store and putting it on your credit card. And now, you’re thousands of dollars in debt.
It doesn’t have to be that way. Talking Cents is launching a new series of informative graphics to help you understand, called “Buy This, Not That.” We’ll show you the luxury good or expensive item that you desperately want, and then show you a comparable item at a significantly lower cost. This month, we’re looking at the Louis Vuitton Biface bag, which costs a whopping $6,050 from the retailer.
Just to put it in perspective, here is a list of some things that $6,050 will get you:
- Down payment on a 2014 Honda Odyssey minivan (20 percent down payment)
- Down payment on a 2014 Lexus GX 460 SUV (12 percent down payment, the current national average)
- 12 iPad Air tablets
- Cable/internet/phone bill for 40 months
- 24 weeks’ worth of groceries for a family of four
- Seven IKEA Kivik black leather sofas
- A 2015 Vespa Primavera 150, plus accessories
- Airfare (from LAX) and luxury accommodations in Hawaii (five days, four nights) for five adults
- 60 1-day passes to Walt Disney World’s Magic Kingdom
- Weekly massage at a high-end spa, plus tip, for a year
As you can see in the graphic below, you can get a very similar purse at a lower-end retailer for a fraction of the price. When you look at all of the things you could buy and all of the bills you could pay instead of the luxury purse, doesn’t it make sense to buy this lower-end purse, and not that high-end bag? The Forever21 bag is much easier on your wallet and will fit into your budget.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.