Author Topic: low income families spend-40%-of-their-money-on-luxuries  (Read 1091 times)

slow hand slow plan

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obstinate

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Re: low income families spend-40%-of-their-money-on-luxuries
« Reply #1 on: June 30, 2017, 10:07:04 PM »
"Luxuries are defined as goods and services consumed in greater proportions as a person's income increases."

So, meat is probably a luxury, as is your second pair of shoes.

Ok. Not Mustachianism imo.

Tom Bri

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Re: low income families spend-40%-of-their-money-on-luxuries
« Reply #2 on: June 30, 2017, 10:39:18 PM »
I also noted their definition of luxury. By that definition, anything over bare starvation is a luxury. 'Poor' people around here seem to spend lots on stuff I consider unnecessary, but that's not quite the same.

LPG

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Re: low income families spend-40%-of-their-money-on-luxuries
« Reply #3 on: June 30, 2017, 11:32:37 PM »
I found the comment about people spending money on necessities to regain their sense of control interesting. When I need to regain my sense of control, I buy index funds... It doesn't exactly give me more control today, but every step closer to getting control of my every day life makes me feel goooooooodddd.

FrugalToque

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Re: low income families spend-40%-of-their-money-on-luxuries
« Reply #4 on: July 02, 2017, 07:01:21 AM »
Quote
The Deutsche Bank Research report defined luxuries as “goods or services consumed in greater proportions as a person’s income increases”

Yeah, that's pretty ridiculous and a poor excuse for trying to make poor people look bad.

If they can't come up with a better way to define "luxury", a way that doesn't include "food that isn't on the edge of expiry", I don't feel like we should lend any credence to their study.

Toque.

mre

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Re: low income families spend-40%-of-their-money-on-luxuries
« Reply #5 on: July 02, 2017, 07:35:20 AM »
Quote
The Deutsche Bank Research report defined luxuries as “goods or services consumed in greater proportions as a person’s income increases”

If you are going to compare a person's spending on luxuries vs necessities but you define luxuries and necessities by a person's spending, then your entire comparison is invalid.

It's like comparing groups of people by dietary choices, but defining those groups based on dietary choices.  It makes no sense, unless of course they are trying to invent statistics to generate click revenue.  I'm sure they would never do that.
« Last Edit: July 02, 2017, 07:36:59 AM by mre »