to discuss the reason you need to be on a budget

Me, Myself and My Purse Envy

Tracee Ellis Ross, daughter of Icon and legend Diana Ross admitted to rocking a fake Birkin. This revelation caused a stir. Why? She’s rich for one. Tracee, herself didn’t even think it was worth spending 20k plus on an exclusive bag. Interesting to say the least especially when you look at the countless Birkin photo-ops on Instagram. There are 5,598,875 #birkin tags but only 200k Birkin bags in circulation. Hmm…

What is about the Birkin?

What is the appeal? The look? Doubtful. It is 100% a status trap. That leads you down a never-ending rabbit hole. Not a journey of self-discovery but one that rears its ugly head: self-esteem.

Is our self-esteem tied to showcasing luxury? Is it a way to prove to the world that we have arrived and that we have made it?

Yes! To upgrade your lifestyle or not to upgrade, that is the question.

What’s the answer?

If you take a few steps back and examine it on a surface level, it is all about looking at your life relative to the percentages.

That is my go-to response to rule them all.

How do your choices stack up against others based on the % of your income? By breaking this down, you will be able to understand the good, the bad, and the downright ugly of some of our money choices.

I remember a photo of Beyonce sitting courtside dressed to the nines. I thought to myself: nice shirt. I later found out it was a $700 Gucci t-shirt. I thought to myself, well… Is this a treat yo self-moment or is this a passing…. must be nice moment. It was the latter.

Beyonce makes on average $55 mil per year. That everyday purchase for her represents 0.001273% of her income. Now, what if an average single woman decided that she just had to have that same t-shirt? Let’s say she makes 70K per year, higher than the average income for a single woman, which would represent 0.93333% of her income.

Do you see the rub?

If Beyonce were to spend that percentage it would amount to a $513,333.33 purchase. Beyonce is a savvy businesswoman, I can’t see her dropping that much money on one item.

As for the 70k single woman, if she wanted to spend Beyonce’s relative % that would amount to $9.95.

See the difference now?

Makes you think, doesn’t it?

BGMD Editorial Team

BGMD Editorial Team

Teigh Reed is the Content Editor for BGMD. I have a passion for all things finance-related. I'm on a mission to pay forward my knowledge of money and to cheer on your accomplishments. What's on your money mind? I'm listening.

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