by James Boyd

Created on: February 01, 2011

Luxury Items

I grew up in a fairly affluent household. I learned at an early age that some things are better than others, and that the better things usually cost more. I understand that, and it makes sense, at least for most things. But the converse is not at all true. The fact that something costs more than another version of the same item does not mean the more expensive item is better, even it costs a great deal more.

I see ads in magazines for watches by “famous” watchmakers and the prices are absurd. There was a time when a good watch (meaning one that kept accurate time) was fairly expensive. With the advent of electronics, that changed dramatically. For thirty or forty dollars you can get a Timex or a Casio that tracks the time and date, is safe in water to a depth of 100 meters, and even has a stopwatch. Does anybody actually believe that a $10,000 Rolex or one of those gaudy $17,000 specialty items is a better watch than the Timex?

Nobody buys that $17,000 watch because it is better in some way than a $40 Casio. Nor do they buy it because they truly appreciate the craftsmanship that went into the inner workings. They buy it so they can show other people “Look, I bought a $17,000 watch”.

The decision on which vehicle to buy often has the same motivation. I have had many pickup trucks in my life, and every single one of them was a working vehicle. Whether they were pretty and shiny or not was irrelevant. Accelerating faster than everybody else did not enter into the equation. Today I see lots of shiny, big, fast pickups that have never been used for any hauling bigger than a set of golf clubs. They have 4-wheel drive and big tires but the owner would be horrified if you suggested he take it off the highway and into the rough country. There is not a scratch on them or a twig in the bed. They spent $25,000 on a vehicle that they will not use for any purpose that could not be served just as well by a compact car that gets 35 mpg, instead of the 12 (or less!) they are getting. It is a complete and conspicuous waste. And it has to be conspicuous because that is the whole point.

 “My house is bigger than your house.” Never mind the fact that my house cost more than I could afford and the mortgage payments are crushing me. Never mind the fact that my house takes a lot of time and energy and money to maintain. We have been so focused on buying more expensive stuff so others can see how money we can spend that we have lost sight of what constitutes value.

The value of my possessions to me has nothing to do with what you have. If you bought that expensive watch or car or handbag because you think it is wonderful, fine. If you bought it so you could impress me you wasted your money.

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