I saw an ad today on Facebook that was promoting something like 20% off “investment pieces“. I sat there staring at my screen, utterly dumbfounded by what they were calling an investment.
The first thing on the list was a Prada bag that originally sold for $6,500 and now retails for $1,995 since it’s now out of season. It was on sale and you could have it now for the special price of $1,596.
An investment, in case someone didn’t understand is about investing money for profit. So if you invest $20 today, in a real investment fund, you would hope that one day that $20 would turn in $25 or $50 or if you are lucky, even $100.
Buying something expensive that only goes down in value isn’t an investment.
No matter what the fashion industry calls it, when you spend a lot of money on something like shoes, or a purse, it is not an investment. You will never see a return on that money.
These items will not go up in value.
When you put on those $1,500 pair of Louboutins, they get worn and they lose value.
Sure, you can one-day sale them to someone else and recoup some of your money but you aren’t going to make more money than you bought them for.
Would you buy out of season, used shoes for more money than they originally sold for as new? Of course not. So why would anyone else?
I’m sorry but unless you are willing to sit on a really special, rare and unique item until it becomes vintage, and I’m talking decades here then you aren’t likely to make your money back.
Calling it an investment just shows how much you really don’t understand about money. It makes you look foolish so please do yourself a favor and don’t use such a term as “investment piece”.
Let’s look at this $62,000 Hermes Birkin leather handbag. Today’s it’s now only worth $43,000. That’s because while the bag may look fabulous, it’s not an “investment”.
While saving for your future is important, and that often time includes investing, please do it the right way. Don’t fall for these scam companies trying to con you into investing in fashion. Invest in stocks and bonds. You’ll actually have a chance at seeing a return on your money that way.