Talking about how you spend money on the internet makes people mad, no matter how it is you spend it or how much of it you do or do not have. There’s no way for someone’s private finances to satisfy everyone’s public idea of good and healthy financial responsibility, and odds are that anyone inclined to comment on it probably has some financial skeletons in their own closet. But that’s the reality of shopping, and of loving fashion—sometimes you buy a bag you don’t have the money for just yet, or you put off other responsibilities that you should ideally be taking care of first. Those are extremely human choices.
That’s also the reality of being young, which is something I personally identify with a lot. The subject of this week’s edition of Closet Confessionals is 26 and living in New York City, making a good salary but surrounded by a lot of people with a lot money who are having a lot of fun. She indulges instead of saving, and when I was in my mid-20s, that’s exactly what I did, too. Go easy on her—you were young once, too. And who doesn’t want to buy Chanel instead of a Roth IRA, really?
As always, we can’t publish these little peeks into people’s private shopping lives without help from you. All you have to do for the chance to be featured (anonymous, of course) is fill out the questionnaire below and give us as much detail as possible!
[sc_cc_callout]The Basics
Age: 26
Gender Identity: Female
Location: New York City
Occupation: Policy analyst
Industry: Government
Income: $70,000 year salary
The Bags
Are you a PurseForum member? No
How many bags do you own? 7
How much is your collection worth? $15,500 in bags, approximately $7,000 in small leather goods (SLGs)
What is your most expensive bag? Chanel Mini Rectangular Flap Bag in quilted caviar leather
What are the most important brands or pieces in your collection? My Chanel Iridescent Wallet on Chain, because I love its subtle shimmer. I pretty much love things that sparkle and indulged in as many iridescent SLGs: card holder, card holder with snap, coin case, cosmetic case, etc.
What age did you get your first designer bag, and what was it? 21. I bought the Louis Vuitton Neverfull MM in Damier Ebene. I had just graduated and started my new job. I felt like I needed an “adult” bag now that I was no longer in school, and this particular bag was within my price range and big enough for me to carry everything I needed to for work.
Any particular bag that holds a special sentimental value? I will forever love my Chanel black iridescent WOC. I cannot say how much I love the sparkle and glitter look. I was on vacation in Paris with my boyfriend during Christmas. The weather was absolutely lovely and we were browsing around and exploring the area. I honestly had no intention of buying anything, much less a bag, but as soon as I stepped in the boutique and saw the bag, my heart melted. Without even thinking, I bought it and have used this bag a often as possible since. It’s simple and versatile.
Do you feel like your bags change people’s perceptions of you or how you’re treated? Yes and no. I work in the Financial District in New York. Everyone I work with is a lot older than I am, generally they’re a lot more experienced than I am at work, too. I feel like I’m most likely judged for being a millennial, but not so much on the bags I have. I think they judge me based on the choices I make. I’m pretty young and I don’t have a kid, so I splurge most of my paycheck on either bags or SLGs, after rent. Most of my colleagues advise me to constantly save or put the money in ROTH/IRA account (still don’t know what any of that means). I have neither created an account nor contributed yet, and I’ve been working for 5 years now, almost 6. My work mom nags me about my recklessness, although she does admire the bags. I don’t think this changes how they treat me at work at all, just that they see me as a 20-something spending a lot on luxury items rather than preparing for the future.
The Shopping
How often do you buy new bags? I am a little more crazy with buying SLGs than bags because they’re small and interchangeable, in the sense that I can always swap out SLGs in my bag. But I buy bags only when something really catches my eye. It’d have to melt my heart like the iridescent WOC, but that’s very, very rare. Right now, I am content with the bags I have and don’t feel the need for one.
Which stores do you frequent the most? Chanel
Do you ever buy second-hand bags? Where do you buy used? No. I’m picky. I like my bags to be new and in mint condition, so I just buy them from the boutique. Most of the items off the consignment stores retail higher than what’s actually sold at the boutique, as well…
Do you sell old bags to pay for new purchases? No. I gave away two old bags (Louis Vuitton Speedy Bandouliere 30 and a light gold Chanel Mini Rectangular Flap Bag) and a few SLGs to my friends. I’m just super lazy to deal with the shenanigans of selling online and packaging it.
Do you ever feel societal pressure to purchase more bags? Nope. I only buy what I like. I’m not a fan of buying something just because it’s all over Instagram.
Do you consider your bag purchases investments? Sure?
Who influences your buying decisions? My boyfriend. He’s the responsible one and manages my monthly spending to ensure that I’ll still have enough to pay rent and groceries. I’m all for buying bags, but he influences me to not…
Are sales associate relationships instrumental to your shopping? Yes. I think I’m fortunate to have a down-to-earth SA at Chanel. She’s not judgey and not pushy. She’s always informing me what’s new and reserves items for me when I am getting off work late.
Why do you enjoy shopping, beyond just acquiring something new? It satisfies an addiction for me. I always have the impulse to shop, even if I don’t need anything. I just enjoy the activity. I consider it a workout, walking all around the city browsing and buying things.
Have you ever felt like you received inferior service at a store or boutique due to your appearance, ethnicity or gender? No.
The Money
Who pays for your bags? I do. I’ve paid for all my bags and SLGs.
Do you set aside a budget for your bag purchases? I have to. When I bought my iridescent WOC in Paris, that purchase set me back a couple months worth of shopping because I didn’t set aside a budget for it. That bag purchase wasn’t planned, and the vacation to Paris was costly. I don’t have buyer’s remorse at all, but I just couldn’t afford to buy other nice things for myself since I didn’t budget that purchase. That was actually my most recent bag purchase. I normally set aside 30% of what’s left in my paycheck towards my luxury indulgences every month. I don’t spend it on a bag every month because I don’t buy bags unless it’s something I really want/need.
The Taboo Topics
Have you ever purchased a counterfeit because you couldn’t afford a designer item? No.
Do you ever hide purchases from your significant other? No. We live together and share a closet. He sees all my bags in its glory.
What’s the craziest thing you’ve done to afford a bag? I ate ramen for a month to buy my iridescent Mini Rectangular Flap. I was saving up for the bag and tried to reduce my living expenses as much as I could…
Do you think your shopping is ever a problem? No…
The Rest Of It
Any other expensive hobbies or passions? Traveling!
I would say that its her choice to do with her money what she wants, except our welfare system requires your neighbors to support you if you make foolish choices. If you want Chanel – save and buy out of your disposable income – your excess money. Don’t marginalize your future when the end result is that the rest of us may have to bail you out when you’re older.
I was saving in my 20’s. My parents taught me about the compounding of interest, which means that a $1 saved in your 20’s is going to be worth far, far more money than to your retired self than more money saved in later in life. If you start saving at age 30, things get a little trickier.
The following shows how much money you’ll accumulate over time if you invest $250 a month starting at different ages. It assumes an eight percent average annual investment return.
If you start at age:
25: You’ll accumulate $878,570 by age 65
35: You’ll accumulate $375,073 by age 65
45: You’ll accumulate $148,236 by age 65
In short, the longer you wait to start saving and investing, the more you’ll miss out on compound interest.
It also depends on how much one earns. She’s only 26 years old and already earning $70,000 a year. I know she lives in expensive New York, but I’m guessing that her income at age 35, 45 or 55 will be much more. I didn’t start investing for retirement until age 33. I’m doing way better than the figures you’ve provided, and I’m buying more Chanel, Hermes and LV than I’ve ever bought before.
brought to you by…..
my mother was a CPA and Financial Planner – this was drilled into my head from an early age
Since we’re talking personal finance – which is why I think it’s a good idea that this person shared an honest diary – Is it possible to be getting 8% annual back if you’re starting from $0? I assume you’d need to have a good chunk of money to make the initial investment anyway, right?
Yes, if she is invested in a general equity index like the S&P, over several decades 8% annual return is actually a conservative estimate. and with her young age, diversified equity investments are appropriate.
This! Far too many people sacrifice their future by buying all the shiny things now. These bags are not going anywhere, much better to buy when you’re in a financial position to also be able to save, invest etc.
I would wager that “I ended up on public assistance because I bought too much Chanel” isn’t a common story.
A shocking 21 percent of Americans have nothing at all saved for the future, and another 10 percent have less than $5,000 socked away for their golden years, the study found.
https://www.cnbc.com/2018/05/11/how-many-americans-have-no-retirement-savings.html
You might be surprised how many people end up declaring bankruptcy because they lived beyond their means – luxury goods, vacations, etc. And how many divorces were caused by one spouse spending the couple ‘into ruin’.
Eh, I’m not gonna judge. I had similar spending habits in my 20s, but I’m actually much more frugal and careful with my finances now. Spending with abandon for a few years really helped get the shopping urge out of my system.
I don’t mind reading these kind of confessionals. I think it’s nice to hear what everyone’s doing. Not everyone who buys bags makes six figs and is super responsible, so I think it’s good to open up the discussion table to what others are doing. The last confessionals have all been responsible anyway!
I think there should be a balance between being responsible and having fun with your money. I’m 30 and I don’t have any payments (incl. mortgage) – while that did come with some sacrifices, I still vacation a lot and recently bought my dream bag. It’s possible to do both.
To each its own. I love that she doesn’t impulse shop for the bag of the “IG moment,” instead, it’s what appeals to her and feels like a worthwhile investment for her. The total value of all her bags can get her out of a rough financial situation and, when she considers to seriously start funding her retirement, reselling a Chanel will lead the way.
I enjoyed this diary and loved that the Chanel made her heart melt.
I think as a society we don’t do a good job educating young people, particularly young women, about personal finance. I am a millennial woman and never had to take a personal finance class in high school or even in college as part of my business degree. It certainly would have been more useful to my future than calculus ever was!
“Do you ever hide purchases from your significant other? No. We live together and share a closet. He sees all my bags in its glory.”
I know that’s right!
I like Amanda intro right before this confessional. In my mind the point of this series is to answer the question “how on earth does this person pay for/afford these bags?” That we may have whenever we see collections. People will always find something to criticize. But, I’m thankful to those that do share their efforts and sacrifices to get the handbags they love.
The mother in me says, “Alright now. Time to start creating your nest egg, especially if you decide to have children down the road.” The big sister in me says, “As long as you enjoy your youth responsibly, shop ‘til your heart is content!” You have a good head on your shoulders. ?
I would love to read more of the honest stories like this. She is very brave to tell us of her situation. I can understand the frustration of witnessing wealth every day but not being a real part of it. I feel zero judgment toward her.
I LOVED her story when I read it. I have been there – I’ve spent a lot of money at different times in my life without thinking of the future.
I am all for those who save and are really good with their finances, but that isn’t most people and I don’t think that’s something to judge greatly either. We all are able and allowed to do what we wish with our money and I so appreciate the honesty. It’s such a different take from the others we’ve had!
She’s only 26. There’s time to save for retirement, but I’d suggest that she start soon, that way she won’t have to sock away as much as if she were to start later in life. Call me an old fart, but I truly believe that a boyfriend has no business keeping his girlfriend in check when it comes to spending her own money, even if she appreciates it. She has to learn that self control on her own. Otherwise, enjoy life girl!
I feel that everyone is making excellent points re: she should spend her money since she earned it, but also strongly urging her to save for her future. I feel that life passes you by very quickly and it’s nice to have fun, but it’s important to save for the future. It catches up to you very quickly. Lastly, I’m impressed with “Lolly”. She makes some excellent and well thought out suggestions that shouldn’t be ignored or ridiculed.
It doesn’t sound like her bag collection is that extravagant, tbh. While the title is a bit click-baity (and maybe it is the truth that she isn’t saving towards retirement and instead spending money on bags), but it’s not like she’s spending all her money on bags. She said she’s been working 5-6 years now, which is $3000ish per year on bags, which isn’t bad at all considering her income level. Unless she actually spent $30K on bags in the last 5 years and gave half of that away to friends, then that could be an issue lol.