Sunday, May 11, 2008

note to self

This article explains how some women (and some fashionable men) have succumbed to bankruptcy just to satiate their need for designer bags.

I don't claim to be a financial guru and I certainly have my share of deluded moments when all I could think about is buying THAT bag, but thank St. Theresa (my alma matter's patroness) that I haven't gone bankrupt because of this "passion." I have delayed some investment opportunities to get a designer bag *guilty* but I come to my senses and eventually tighten my purse strings after a purchase.

To prevent any further damage, I should establish bag purchasing rules to follow. I thought I should blog about it so whenever I feel the urge to splurge, all I have to do is go online and check this manifesto. Here it goes:

1. Invest the same amount of money you spend on a designer something to equities/bonds. e.g. If you buy a P40,000 bag, invest your next P40,000 to the stock market / money market fund.

2. Have a designer goods ceiling / cap. Set a reasonable portion of your yearly budget for bags and shoes. It could be P50,000, P100,000, or P500,000 (depending on your current annual income). I'm guessing about 5% to 10% is alright. I'm just a start-up fledgling build-up-stage no-right-to-live-like-a-millionaire working woman, so my self-imposed cap is P50,000. This means I have almost exhausted my bag /shoe fund (and it's only mid-year). Unless I find a shoe at 80% markdown, I can't afford to buy any more items.

3. If the boyfriend buys it, it doesn't count.

4. If it's on sale, it still counts. "On Sale" items are still expensive.

5. You don't have to have it. You just think you do.

That felt great.

Now, time to study the equity patterns in the last 6 months. I will be steering clear of high-end stores until Christmas. Time to be responsible again.

I will take 21,000 shares please.