Having luxury goods is not necessary for our lives, but dear friend you have to admit, having them boosts our ego and pride. However, we cannot bring earthly things to heaven, but we can enjoy them as long as we have the means to get them.
When a person’s wealth or income increases the demand for luxury items also increases. Since luxury items are costly, rich people are the main target consumer of luxury goods. People that are not well-off or wealthy don’t casually buy luxury items because their income percentage goes to their necessities rather than wants.
Luxury goods can be a way to show off that someone is wealthy. However, the Holy Spirit doesn’t want us to show off, in fact, He wants us to low-key help, serve, and assist other people and mildly change their lives.
Luxury Goods
Luxury goods tend to be dependent on your income or wealth, which simply means that as your wealth or income rises, the more you have the capacity to purchase luxury items. Therefore, luxury goods are one of the factors that show positive income elasticity and demand.
Luxury items are also called wants and are the opposite of needs or necessities, needs are defined as something that we buy regardless of their wealth or income because it is necessary to sustain our lives. Needs are classified as food, water, and household utilities that are needed in our house or an apartment in order to sustain our living.
Wants or luxury items can also be in the form of household services, such as live-in chefs or housekeepers. Some financial services can also be taken into account as luxury services because people who have low incomes generally do not use such services – insurance, financial advisors, and etc.
Luxury items may also have insurance with them to ensure that the value of the item is protected.
Special Considerations
Some luxury products have some investment purposes around them, for example, jewelry, the value of jewelry increases as time goes by depending on inflation and the market, so wealthy people invest in purchasing jewelry as one of the forms of their investments.
Other luxury properties such as an extra home or a piece of land, could also be a wise investment to wealthy people, as they lease or sell their land for a hefty price, for all we know the value of a property increases as inflation also increases.
Examples of Luxury Goods
Luxury Items vary from one person to another, the following general items are considered luxury items in a generic economy:
- Branded and haute couture clothing
- Accessories like jewelry and high-end watches
- Branded Luggage
- High-end automobile
- Yacht
- Aged Wines
- Additional Homes and estates
KEY TAKEAWAYS: Do’s and Don’t
- A luxury Item or good is not necessarily needed in order to survive and sustain life.
- Prioritize first your needs before buying your wants and ensure that your cash flow, insurance, and other necessities are all taken care of before purchasing any lucrative goods.
- Always consider that luxury goods are not essential, and think that the money you use in purchasing them could help your family or other people.
- It’s not bad to purchase luxury items once in a while, however, always consider your income and wealth, and is it a need or just a want.
The Holy Spirit wants you to have the best in life, but you must have the discipline to nurture what has been given to you. Before buying anything in excess, pray for it. Let the Holy Spirit guide you in every decision you make.