Designer Brands: Great Investment or Worst Nightmare?

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You have probably seen many designer brands like Dior, Louis Vuitton, Channel, Saint Laurent, and Hermes online or on social media. People love to show off or brag about their wealth and status by having a new item in their collection. Many people adore designer brands because they are classy, elegant, unique, and make one look wealthy. Designer brands never go out of style. Everyone wants to own one designer brand item at least.

Of course, buying a designer brand item can take a massive toll on some people's paychecks. It can cost up to $1000, $5000, or even $10,000, depending on the brand and item. Like, how are you supposed to afford that anyway?

For some people, designer brands can be seen as a great investment or a worst nightmare.

Why They Are Great

Most people think it is an excellent investment and the best purchase since it shows off their wealth and elevates their status. To some people, they may find that these purchases show how much they accomplish and what they can do with their money. There are many reasons why they make an excellent investment.

Resale Value

Do you know how much a Chanel bag is now? It used to be in the $7000 and $8000 range, but it is now in the $9,000 or $10,000 range. It might increase even more later. Designer brands tend to hold more value compared to fast fashion. They can hold their value if you keep them in good condition.

If you keep it in good condition and resold it to someone you know, you could have earned a profit. Many people love to own one. Your friend or family probably bought it off of you if you had one that you didn't want anymore. Some designer brands like Louis Vuitton, Channel, or Prada appreciate over time.

When selling designer clothes, you need proof that the item is authentic. People want evidence that it is an original item if you plan to resell it later.

When purchasing an item, things to consider keeping:

Receipt
Labels
Packaging or any gift wrap
Store bag

Whether it is a handbag, jewelry, clothes, or shoes, you want to keep it in excellent condition if you consider selling them in the future.

Happiness

Everyone deserves to be happy. You only live once, so you want to enjoy it as much as possible. You want to live your life to the fullest by doing everything you want. Whether purchasing a designer brand or traveling the world, you probably have a lot of things you want to do on your bucket list. Having a perfect life can be challenging when you are often faced with many obstacles in life.

You probably accomplished a lot of things in life and find yourself to be a successful individual. You want to reward yourself for your hard work, and most people find that in luxury purchases. If buying a luxury item gives you a sense of joy and happiness, then go for it.

Your happiness is essential, and it makes sense to do everything before you die. But don't let yourself go too wild because your bank is just as important as your life. When buying these luxury items, make sure you can afford them. You don't want to go into debt right after making a purchase. As much as your happiness matters, you must understand your financial standing first.

Quality and Feel

As expensive as these designer brands are, they are not made with cheap materials but high-quality materials. Instead of material from China, they would be from Italy. If you are spending lots of money, you want it to last for many years instead of a couple of months. Some people buy them because of their quality and durability. They prefer the quality of materials rather than the number of things they own.

Although it seems extravagant, some people prefer to spend money on designer brands rather than generic brands. If they have the money and aren't broke, then it is up to them how they spend their money.

Another thing designer brands do is that they make people feel confident. Whether it is designer clothes, bags, or accessories, it makes one feel comfortable and confident. Who doesn't want to walk down the street dressed with designer brands from head to toe?

Worst Nightmare

Designer brands can be your worst enemies when you are broke. The market does a phenomenal job at enticing buyers through emotional experience and getting them to spend their money like crazy. Once you are drawn into it, it is hard to resist the temptation. You will swipe the card, and there goes your money. You can purchase designer brands that make you no money or use your money to buy assets.

Waste of Money

There are many ways to spend your money. Money can buy a lot of things. Some think they have to spend on designer brands, and others believe it is wiser to spend on other things. It depends on how you use money as a tool.

It can be a waste of money because you work many hours to purchase one designer brand item. If you work for $20/hour, think how many hours you have to work to buy a $10,000 Chanel bag. Was it worth trading that many hours for that one purchase?

You can make more meaningful purchases with your money than on one item. You can travel the world, obtain financial freedom, visit amusement parks, buy assets, and more. Look at some frugal millionaires like Warren Buffet and Richard Branson. They don't care about designer brands. They live a comfortable and simple life by appreciating what they have.

Debt

Of course, that's thousands of dollars for you if you want to purchase a designer brand bag, clothes, or accessories. Can you afford it, or are you adding debt for yourself?

It's one thing when you buy designer brands you can afford, but it's another story if you buy them with no money. Before making a purchase, you should figure out your financial situation. Ask yourself if it is worth the money because that is a chunk of cash you lose.

It's better to buy other things you can afford than to stack debt for yourself. You might find second-hand designer clothes in your price range at local charity shops. It's better than buying them new.

You could also look at other brands that is similar to the designer brands. There are so many brands out there that you can buy from, and it's not as expensive. You can save your money for other things like investments.

Imposter Syndrome

You may think that designer brands give buyers a sense of enjoyment in life and elevate their status. However, it can also be a double-edged sword. Some people feel their luxury purchases don't fit their character or don't deserve them even though they can afford them. This labeling is known as imposter syndrome. Going through imposter syndrome can be difficult to enjoy or be happy about your purchases.

You may think that designer brands make you feel better and increase your self-worth. However, this can have the opposite effect and affect your mental health. You might not feel like yourself and think these purchases are necessary to define who you are.

When this happens, you need to reevaluate what lifestyle makes you happy. You might think you will fit in the crowd like everyone else, but at the end of the day, you should make yourself happy first.

Final Thoughts

Whether you buy designer brands or not, it is really up to you. Everyone has their lifestyle and how they want to spend their money. It's not for everyone, but seeing what people look for when buying things is excellent. What do you think about designer brands? Do you think it's worth buying, or is it the worst nightmare?

Thanks for reading, and I'll see you in the next post!

Cindy

Website | + posts

She started her blog, The Money Dreamer, when she realized the 9-5 job was not the lifestyle she wanted anymore. After designing for a while, she wanted a more meaningful life, which was freedom, so she decided to venture out. She took action so that she can live her dream life and decided to help people to live theirs by helping them how to save, budget, and invest.