Author Topic: Math justifying to buy a 10K$ handbag on credit  (Read 23507 times)


Eggman111

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #1 on: July 15, 2014, 02:55:22 PM »
Well, clearly, the author needs one, so it doesn't sound like there's any way around it. :p

yyc-phil

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #2 on: July 15, 2014, 03:18:15 PM »
If you have the stomach for it, you can also watch her on Youtube for the "unboxing" of her new Chanel bag. This masterpiece of the documentary genre lasts a very short 7:41.

http://youtu.be/YEGOezo7QLQ

jprince7827

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #3 on: July 15, 2014, 03:30:50 PM »
Oh. My God. Who pays 5,500$ for a bag.

Angie55

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #4 on: July 15, 2014, 03:42:27 PM »
Oh. My God. Who pays 5,500$ for a bag.

Someone who puts 10k bags on credit cards and will file bankruptcy in 5 years from all the ridiculous shopping they have done....

hermoninny

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #5 on: July 15, 2014, 03:57:11 PM »
I used to dream of having a Birkin bag (pre-Mustachian days, of course.)  But I would *never* consider putting it on a credit card.  That's just insane.

Did anyone tweet her an answer?

totoro

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #6 on: July 15, 2014, 03:57:55 PM »
The Birkin is $10,000.  She is a radio announcer in a small town in BC.  It is probably more than 1/4 of her annual take-home pay. 

frugledoc

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #7 on: July 15, 2014, 04:04:29 PM »
pathetic

Christof

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #8 on: July 15, 2014, 04:19:58 PM »
Quote
It’s good to keep things in perspective.

I have nothing to add.

G-dog

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #9 on: July 15, 2014, 04:28:15 PM »
"Buy on credit now: $13,920
Buy in 5 years with ca$h: $12,051
 
The difference is $2000. That’s a lot of money BUT over 5 years it’s not. 
 
$2000
÷ 5 years
$400
÷12 months
$33 a month
 
That’s $1 a day because you KNOW I’ll be using it everyday. "

Oh sweet Jebus!
Some credit card company spontaneously orgasmed when she posted this rationale.

Bigote

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #10 on: July 15, 2014, 05:05:58 PM »
Dayum.

slugline

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #11 on: July 15, 2014, 05:41:31 PM »
"I don’t need it at 27 but within the next couple of years I need one."

This sounds like some sort of rite-of-passage of a tribe to whose customs I cannot relate.

maizeman

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #12 on: July 15, 2014, 07:26:14 PM »
"'Cause this is kinda only a seasonal bag for me, I would only wear this in the summer time." <-- from the video of her opening $5600 one.....


greenmimama

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #13 on: July 15, 2014, 07:39:36 PM »
I notice there are no open comments?

TreeTired

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #14 on: July 15, 2014, 07:49:14 PM »
I wonder why they only cost $10,000 ?    Why not $25,000 ? 



robotclown

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #15 on: July 15, 2014, 07:50:49 PM »
What's fascinating is that she obviously understands how interest rates work, which is usually something non-mustachians don't understand.  And she understands inflation.  So, she's financially literate, in a sense.  If this was math for something one would actually need, the logic is sound.  Alas, not knowing the difference between wants and needs was her downfall.  So close!

kmm

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #16 on: July 15, 2014, 07:53:53 PM »
Oh, bless her heart. I was an fashion-loving 20-something too (15 years ago) who spent ridiculous amounts on status symbols that were supposed to radically improve my life. Once I got a $500 bonus and turned around and spent it all on Manolo Blahnik shoes. Which I have worn ONCE, but still have, as a reminder of my stupidity. And they still hurt.

Now I have a 7-figure portfolio and save 50% of my income. So maybe she'll grow out of it :)

gimp

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #17 on: July 15, 2014, 08:06:12 PM »
I wonder why they only cost $10,000 ?    Why not $25,000 ?

Come on, don't be ridiculous. $25000 is just silly. $10000 is completely normal. For a bag.

GrayGhost

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #18 on: July 15, 2014, 08:45:54 PM »
You know, this is the kind of person Mustachianism could really help. She has (more than) all of the stuff she needs already, and the more she focuses on this ridiculous (and not very good looking) bag the more she will forget that.

There is every reason for a woman to carry a purse, even a nice looking one, but you don't need to spend $10,000, or even $1,000 on such a thing. A brief look on Amazon suggests that you don't have to spend $100 on a purse either. So you could literally spend less than 1% of what she does on a purse and have pretty much the same thing, as far as function is concerned!

boarder42

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #19 on: July 15, 2014, 08:47:34 PM »
The price of the bag increased with avg inflation so her math is wrong. It will actually increase faster than 152 a year. Making buying a 10k piece of cow hide you wear on your shoulder that can be stolen by a passerby definitely worth buying now so that its stolen before your payments are up. She had better get insurance.

odput

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #20 on: July 16, 2014, 06:50:22 AM »
I love how "the price has double since 1982" is shocking to her...a 32 year doubling time is about 2.19% annual growth - hardly a shocking inflation number

It will actually increase faster than 152 a year.

PLEEEAAAASEEE don't point this out to her...it will just more deeply entrench the idiotic notion that buying it today is a better deal

NumberCruncher

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #21 on: July 16, 2014, 07:21:30 AM »
I just...I can't...

I think all her bags cost more than my car. O.o

I honestly kinda find these "iconic" bags kinda ugly, too. Or, at least nothing special. If I were looking to purchase a nice leather purse, I'd go on Etsy and get one for a fraction of the price (new/"artisan" or vintage). That or looking for deals at Goodwill or something. Before discovering mustachianism, I was definitely eyeing some bags on Etsy...but even then I was only looking at ones <$100.


zinnie

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #22 on: July 16, 2014, 07:25:27 AM »
If you have the stomach for it, you can also watch her on Youtube for the "unboxing" of her new Chanel bag. This masterpiece of the documentary genre lasts a very short 7:41.

http://youtu.be/YEGOezo7QLQ

I have now discovered a new genre of film--the "unboxing" of expensive things in elaborate packaging. I suppose so that those of us who will never unwrap Chanel packaging can experience the same rush of excitement.

You learn something new every day! :)

MorningCoffee

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #23 on: July 16, 2014, 08:17:52 AM »
I love that she worked out the numbers. Thanks for the laugh! :)
I just wonder what the purpose of her blog is...   

shotgunwilly

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #24 on: July 16, 2014, 08:19:07 AM »
http://clarkeemilie.wix.com/emilieclarke#!To-Buy-A-Birkin-Now-or-Later/cmbz/E213D84D-E182-412C-BCA5-3B62AE14B763

Read it all, it's worth it!

She asks "Am I crazy? Tweet me." at the end...

I don't have twitter but someone for the love of god tweet her that she's more than crazy, she's a fucking moron.

AH013

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #25 on: July 16, 2014, 09:37:43 AM »
"My other option is to save. What a concept. Haha. "

Haha for the win.  You aced your Credit 101 finals and will graduate with a degree in Consumerism.  Now get out there and finance some new luxury purchases.

I think the 30cm Birkin was the wrong purchase...She's shallow enough to fit in the 15cm version.  Ba-dum-tshh

hermoninny

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #26 on: July 16, 2014, 10:07:47 AM »
I wonder why they only cost $10,000 ?    Why not $25,000 ?

Come on, don't be ridiculous. $25000 is just silly. $10000 is completely normal. For a bag.

$10,000 is the cheapest one.  They can get up to like $150,000, depending on the materials used.

http://en.wikipedia.org/wiki/Birkin_bag

"The Birkin bag is a handbag by Hermès, handmade in leather and named after actress and singer Jane Birkin. The bag is a symbol of wealth due to its high price and usage by celebrities.  Its prices range from $7,400 to $150,000. Costs escalate according to the type of materials. The bags are distributed to Hermès boutiques on unpredictable schedules and in limited quantities, creating scarcity and exclusivity."

Cromacster

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #27 on: July 16, 2014, 10:39:10 AM »
I wonder why they only cost $10,000 ?    Why not $25,000 ?

Come on, don't be ridiculous. $25000 is just silly. $10000 is completely normal. For a bag.

$10,000 is the cheapest one.  They can get up to like $150,000, depending on the materials used.

http://en.wikipedia.org/wiki/Birkin_bag

"The Birkin bag is a handbag by Hermès, handmade in leather and named after actress and singer Jane Birkin. The bag is a symbol of wealth due to its high price and usage by celebrities.  Its prices range from $7,400 to $150,000. Costs escalate according to the type of materials. The bags are distributed to Hermès boutiques on unpredictable schedules and in limited quantities, creating scarcity and exclusivity."

Those prices are for the peasant birkin buyers.  Panda leather or GTFO.

steadierfooting

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #28 on: July 16, 2014, 10:47:09 AM »
While watching her unboxing video, two things stood out:

1) her description of the bag has every piece being a flaw "I don't like the double flap", "I don't know why there's a zipper pocket here" "or here"

2) based on her looks it seems like she's doing all this to overcompensate for her weight.  Jeans + baggy sweater.

I watched for 5 minutes and kept expecting the joke / punchline.  sad.

okashira

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #29 on: July 16, 2014, 10:52:52 AM »
She looks like a real catch. Can't imagine any way she's possibly still single.

fallstoclimb

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #30 on: July 16, 2014, 10:58:04 AM »
All right people, let's not expand the criticism to her body type and her relationship status.  Keep it to her financial habits, which are, indeed, horrifying.

NumberCruncher

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #31 on: July 16, 2014, 10:59:02 AM »
All right people, let's not expand the criticism to her body type and her relationship status.  Keep it to her financial habits, which are, indeed, horrifying.

+1

I was just about to say the same thing.

MgoSam

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #32 on: July 16, 2014, 11:19:18 AM »
All right people, let's not expand the criticism to her body type and her relationship status.  Keep it to her financial habits, which are, indeed, horrifying.

+1

I was just about to say the same thing.

+2

CaliToCayman

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #33 on: July 16, 2014, 11:22:06 AM »
Some credit card company spontaneously orgasmed when she posted this rationale.

HAHAHA, that was awesome

totoro

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #34 on: July 16, 2014, 12:02:36 PM »
Yes, she is married and she looks pretty happy. 

The photographer for the wedding reported that people gathered and laughed as Emilie struggled with saying “for richer or poorer” during her vows.

Maybe they can afford to spend the way she likes to spend.

http://damaramoeblog.com/weddings/bill-emilie-vancouver-wedding/

dragoncar

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #35 on: July 16, 2014, 12:11:33 PM »
What's fascinating is that she obviously understands how interest rates work, which is usually something non-mustachians don't understand.  And she understands inflation.  So, she's financially literate, in a sense.  If this was math for something one would actually need, the logic is sound.  Alas, not knowing the difference between wants and needs was her downfall.  So close!

She doesn't understand opportunity cost, since she didn't factor in any gains on her savings, which should easily outpace inflation of the bag price.

MrsPete

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #36 on: July 16, 2014, 12:21:47 PM »
Where to start?

- She expects us to accept that she "needs" this bag by the time she's 40.  Why? 
- The idea that this bag might go out of style /she will grow tired of the size or the color doesn't seem to cross her mind.
- Even the best made bag -- with daily use -- will wear out before her payments are done. 
- Consumer products don't increase in value over time.  I mean, no one wants to buy the tennis shoes or sunglasses I've been using since last summer. 

At least it's an attractive bag, though I personally could not have identified it as anything more than a nice bag.  If asked to guess the price, I'd have said $200-300 since it does appear to be large and good quality. 

kriserts

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #37 on: July 16, 2014, 02:33:22 PM »
I shared an office with a young woman who bought a lot of stuff online she couldn't return (flash sales). One day I caught her staring at a Marni purse, which she wanted. She said very wistfully: "A purse like that says a lot about a person."

I laughed and said, "Yeah, it's says 'I'm stupid enough to waste all my money on a purse.'"

We got laid off at the same time. This was on a Friday, and she was taking a weekend trip to Paris. I told her, "this is great, now you can stay longer in Paris."

Her reply: "I can't, I'm broke."

The thing is, we both work in advertising and know how companies create desire for things you absolutely don't need.

The only thing I'll say about the Birkin bags is that auction houses are selling them now, some of them do increase in value . . . although I still would never buy one. :)


sobezen

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #38 on: July 16, 2014, 02:42:55 PM »
Yes, she is married and she looks pretty happy. 

The photographer for the wedding reported that people gathered and laughed as Emilie struggled with saying “for richer or poorer” during her vows.

Maybe they can afford to spend the way she likes to spend.

http://damaramoeblog.com/weddings/bill-emilie-vancouver-wedding/

Hope springs eternal....

strider3700

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #39 on: July 16, 2014, 03:40:54 PM »
I have now discovered a new genre of film--the "unboxing" of expensive things in elaborate packaging. I suppose so that those of us who will never unwrap Chanel packaging can experience the same rush of excitement.

You learn something new every day! :)

Unboxing videos can actually be really useful if you're looking at buying something and will order it online.    The official descriptions leave a lot to be desired at times and here they'll pull it apart and show everything included.  I was watching one about a soundbar a few days back because I couldn't figure out how they were supposed to hook up to the tv and the info online didn't list the ports it had on it.   One guy opened it up showed the ports described how it all hooked up and even measured the wires included.   Really useful if you were seriously wanting to buy it.

kkbmustang

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #40 on: July 16, 2014, 05:23:28 PM »
I gagged watching the video. So gross.

GrayGhost

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #41 on: July 16, 2014, 06:10:15 PM »
I just wonder what the purpose of her blog is...

Apparently, to make credit card companies filthy rich.

Eric

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #42 on: July 16, 2014, 06:36:30 PM »
I gagged watching the video. So gross.

Here's the crazy thing.  All of the comments are positive.  All of them.  I've seen the comments on a lot of youtube videos and 98% of them are in the range of either hater, strange, or downright crazy.  There are myriad comments all praising her purchase and expressing genuine happiness for her.  Insanity on so many levels!

Jags4186

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #43 on: July 16, 2014, 06:48:00 PM »
All right people, let's not expand the criticism to her body type and her relationship status.  Keep it to her financial habits, which are, indeed, horrifying.

Well, according to Vimeo, she's married to a guy who looks to be about as wide as he is tall.  I hope she married money and can afford all this stuff.


Self-employed-swami

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #44 on: July 16, 2014, 06:49:43 PM »
All right people, let's not expand the criticism to her body type and her relationship status.  Keep it to her financial habits, which are, indeed, horrifying.

+1

I was just about to say the same thing.

+2

I agree.

yyc-phil

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #45 on: July 17, 2014, 10:45:21 AM »
All right people, let's not expand the criticism to her body type and her relationship status.  Keep it to her financial habits, which are, indeed, horrifying.

+1

I was just about to say the same thing.

+2

I agree.

Support this. My form of Mustachianism also includes respect for people, regardless of their physical appearance. Poking a little fun at their lifestyles and financial decisions may be fine and dandy (as long as it is done without malice and disrespect), but joking about their physical attributes is unacceptable, to me at least.

socaso

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #46 on: July 17, 2014, 12:24:18 PM »
Ok, since I live in The Land of Ridiculous Consumption I am aware of these bags and I'm wondering about the wait list. She doesn't mention that and these bags generally have a wait list.

Also these do tend to hold their value among crazy bag collectors (they are out there people, and they are fueling the luxury economy).

All that aside I just couldn't under any circumstances spend that kind of money on a purse unless there was a genie inside holding three wishes. BTW I wish for infinite wishes...

greenmimama

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #47 on: July 17, 2014, 02:41:46 PM »
Ok, since I live in The Land of Ridiculous Consumption I am aware of these bags and I'm wondering about the wait list. She doesn't mention that and these bags generally have a wait list.

Also these do tend to hold their value among crazy bag collectors (they are out there people, and they are fueling the luxury economy).

All that aside I just couldn't under any circumstances spend that kind of money on a purse unless there was a genie inside holding three wishes. BTW I wish for infinite wishes...

Being FI would be unlimited wishes ;)


rocksinmyhead

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #48 on: July 17, 2014, 03:17:45 PM »
I honestly kinda find these "iconic" bags kinda ugly, too. Or, at least nothing special. If I were looking to purchase a nice leather purse, I'd go on Etsy and get one for a fraction of the price (new/"artisan" or vintage). That or looking for deals at Goodwill or something. Before discovering mustachianism, I was definitely eyeing some bags on Etsy...but even then I was only looking at ones <$100.

I was just thinking the same thing!! The Chanel one looks like someone drew lines on it with a Sharpie. Eww.

All that aside I just couldn't under any circumstances spend that kind of money on a purse unless there was a genie inside holding three wishes. BTW I wish for infinite wishes...

this reminds me of a Shel Silverstein poem... it ends like this:

"And then one Thursday night they found him
Dead—with his wishes piled around him.
And they counted the lot and found that not
A single one was missing.
All shiny and new—here, take a few
And think of Lester as you do.
In a world of apples and kisses and shoes
He wasted his wishes on wishing."

man that guy was a genius.

Middlesbrough

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Re: Math justifying to buy a 10K$ handbag on credit
« Reply #49 on: July 17, 2014, 03:46:29 PM »
Ok, since I live in The Land of Ridiculous Consumption I am aware of these bags and I'm wondering about the wait list. She doesn't mention that and these bags generally have a wait list.

Also these do tend to hold their value among crazy bag collectors (they are out there people, and they are fueling the luxury economy).

All that aside I just couldn't under any circumstances spend that kind of money on a purse unless there was a genie inside holding three wishes. BTW I wish for infinite wishes...

Usually your not allowed to wish for more wishes. So you must first wish you could wish for more wishes. Then, you should be free to wish for more wish after using one wish to wish for permission to wish for more wishes.

Got it?