Everyday, we see sport cars, luxurious mansions, condo's etc.. These things affect us psychologically.
They create a sense of need in us, a desire to want and before we realise it, we are engrossed in working towards acquiring these things or lifestyle.
The adverse effect of a luxurious lifestyle is that it affects the common man, the economy and even you in the long run.
Let's face it. Luxury goods are just over priced everyday commodities with little or no modifications.
A painting was sold recently in New York for a whopping $965000 . This painting was made from the material as other paintings, no difference at all.
That painting will end up in a living room or whatever room attracting no interest. It can not even be considered as an asset, it is just a piece of overpriced decoration.
If that money had been invested, the ripple effect of that action would've affected the lives of many people and the economy at large positively.
Take for example, he invested in a bond, he's assured of a constant interest rate for the duration of the bond, His investment has provided more income for the government who in turn provides social amenities or subsidizes certain goods or services.
The painting was just an example so we could understand that luxury goods are only expensive because we attached too much value to them
