Buy the Shoes, or Save the Money?
Louboutin, Nike, Adidas, Vans, Tom’s…. the list goes on and on. But should you really splurge on those name brands and make your mother roll her eyes (while she’s STILL doing your laundry even though you own your own business) or save the money and make your parents smile from ear to ear because we all know how baby boomers like to save (insert wink towards my Pops here)?
My advice? Do both.
We all value lifestyle, and many of you out there are trying to start your own businesses or start an awesome career. Look the part. Launch your life. Buy the shoes.
Want to help those in need — like when you buy a pair of Tom’s, they give one away? Buy the shoes. (Whatever your cause or passion is, there is now a clothing line geared to help.)
Saving money is important, too
On the flip side… and there is ALWAYS a flip side… you want to maintain your lifestyle AND flourish in your career – well then, you need to save the money.
OK, so how do you buy the shoes and save the money, when you’re not Kanye West?
One suggestion: shopping online takes away a lot of the burden and cost. One name brand piece makes your less expensive pieces pop and gives you the street cred. In short, cut back in other places for that signature piece AND put some money in the bank. Look for clothing rental services so that you save on dry cleaning. There are so many Internet based ways to save on clothing and shoes in today’s market, but you probably already knew that 😉
OK, I bought the shoes. What’s the financial impact of an expensive fashion purchase?
A pair of Christian Louboutin “So Kate Pointy Black” pumps is going to run you back $675. This is a great purchase since black pumps will carry you from day to evening easily. They are very versatile — and if you care for them — they will last you a long time. The key to this purchase is that you don’t have a ton of other shoes to purchase. Louboutin Kates take the place of several pairs of shoes you won’t need…. especially dress shoes that are vital to your business or career. Let’s pretend you own them for 10 years until your fiancé’s dog chews them up.
How mutual funds can fit into your financial plan
Now, let’s say you also invested $675 in a mutual fund that returned 5% (and yes – at this stage in your financial life you should be more aggressive, but we will talk about that in later blogs).
Here’s the important part — because you already owned the Louboutins, you resisted the urge to buy a lesser quality $100 pair of pumps every year for 9 years. You know the urge, right? You resisted it. You saved that money in your mutual fund instead.
The result? The $675 you invested, plus the $100 per year for 9 years that you didn’t spend and saved instead, is going to be worth roughly $2420 in year 10.
So, it takes discipline… but you CAN do both! Share ways YOU dress like a rock star AND save money, too!