The Definition of Luxury Based on Need or Price
Financial Management

The Definition of Luxury Based on Need or Price

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The other day I was watching this segment that talked about inflation here and how things are getting more expensive pretty quickly. As usual you would see interviews from people on what they thought about it and there was this one lady that had an interesting comment. She mentioned how her strategy to save more money as a result was to simply classify the more expensive things as a form of luxury that she doesn’t need.

That actually made me think as many times I actually use that train of thought to save money as well. I know for a lot of people as well for certain things they would never classify it as being a luxury regardless of the price tag as long as it falls within their definition of something that they need. It’s only when it comes to extremely expensive items like a house when the majority of people seem to agree that over a certain price tag would be considered a luxury purchase.

It’s those smaller items I guess where you have to be a little more picky about. Example, everyone has to eat, but if you are telling me say this small hamburger patty by itself costs like $3 I would say that is a luxury purchase that you have to learn not to perceive as a necessity. I think for the most part for myself I usually classify something as luxury based on the price.

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