With just five minutes left to go in an hour-long talk this past weekend, a young lady asked me a question about what to do with all the money she saved from being financially fit.
There was no way I could cover the topic of investments in the brief time we had left so I just got straight to the point and said: “incoming producing assets.”
Given just a few more seconds I would have added, “Income producing assets DO NOT include anything we buy in a retail store!” I was bursting at the seams to say this because I have heard one too many friends say that “it’s an investment piece,” while trying on an outfit, some shoes, a purse, watch or other similar item.
Unfortunately, no one ever achieved financial fitness, much less financial freedom, from a designer bag (unless your name is Chanel, Louis Vuitton, or Michael Kors 😉
You might think: “But they hold their value and could be sold for more later.” “Who cares” is my response. Even if you’re right, it’s not a worthy ROI (return on investment). No one ever lived off the appreciation or the interest from their purse 😉
So when shopping in a retail store, check a potential purchase against your budget (which reflects your values and financial situation), rather than telling yourself fairytales about investments.
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