This damn hamburger costs $250.
TWO HUNDRED AND FIFTY DOLLARS.
Why? And does it really taste 50 times as good as this $5 burger from In-N-Out?
$5.00 at an In-N-Out Burger near you.
Notice our first reaction when we see a $250 burger: “RIDICULOUS!”
Or “Only a ____ person would buy that.” (What word did you use? Arrogant? Elitist? Jackass? Dumbass?)
Sure, you could take that approach and insult people who spend a lot on something. That’s what most people do.
Or you can say, “Hmm. What’s really going on here? Who actually buys this?”
As a general rule, people who spend 100x more than other people are not stupid. There’s something else going on here.
Something that almost nobody talks about.
A look into the secret world of luxury
Luxury is one of those things that makes us feel happy, sad, angry, and jealous — all at the same time.
For example, who the hell walks into a Tom Ford store and buys a $6,000 suit…on a Wednesday?
$6,000 for ONE suit!
Just thinking about spending that much money on clothing makes some people cringe.
But notice that if you were given this suit for free — the same suit James Bond wears that fits like a glove — every single one of us would put it on with a huge grin on our faces.
I used to think spending this kind of money was completely stupid and irrational.
When I’d get on a plane, I’d laugh at the people flying first-class. “Lol, stupid. They paid 3x the airfare, but we’re all going to the same place. Ha ha.”
I was an idiot. I never once stopped to ask, “Hey, I wonder why those people are spending that kind of money?”
You’ll notice that most frugalistas and experts completely dismiss the value of luxury. They see the world as a spreadsheet of dollars and cents that can be optimized and counted…and should always be maximized to save as much money as possible.
But you and I know that’s not how life works. Sure, saving is important, but if you can afford it and you want it, shouldn’t you be able to splurge to buy it — every once in a while?
As I say, spend extravagantly on the things you love…as long as you cut costs mercilessly on the things you don’t.
Now, do you see why we feel so conflicted about luxury?
We want it, but at the same time we don’t. We see it everywhere, but nobody wants to talk about it publicly. We say certain things are “wasteful,” but the $10 lunch we bought yesterday seems wasteful to someone who’s living on $10 a month and feeding a family of four. And we’re all for luxury until we see how much it actually costs…at which point we instantly label it “ridiculous.”
Am I saying you should immediately go out and buy a $6,000 suit? No.
But I what I am saying is that it’s better to understand what’s going on in this luxury world than to immediately write it off as “too expensive” or “stupid.”
In fact, I’ve seen my view of luxury change through the years because I’ve seen it from both sides of the table.
One year, I earned only $11,000. I didn’t spend a lot on luxury then. But as my income grew, I saw another side. For example, I’ve written about how I spent $50,000 on luxury services last year.
As I started seeing things from the both perspectives, I learned to move past the sticker shock of saying “That cost HOW much? That’s insane!” and try to understand what’s really going on.
This week, we’re going to look beneath the surface and learn more about this secret world. Who buys this stuff? Why?
And from the company’s perspective, how can they charge that much?
For today: What’s the most expensive thing you’ve ever paid for?
I’m curious — what’s the most expensive thing you’ve ever paid for?
It could be staying at a nice hotel, eating at a 5-course restaurant for your anniversary, or buying an amazing coat.
No judgment here — just pure unadulterated luxury in the comments below. Let’s talk about what you spend your money on, and how it made you feel.
And tomorrow, I’ll give you behind-the-scenes access to someone who creates luxury experiences like this — for millionaires and billionaires all around the world.
P.S. Tomorrow’s guest is the guy you’d call if you wanted to take a last minute trip to the International Space Station or ride in a submarine to see the wreckage of the Titanic. I can’t wait for you to meet him.