Investopedia

Continue to Site »

Luxury Item

Filed Under » ,
Dictionary Says

Definition of 'Luxury Item'

An item that is not necessary for living, but is deemed as highly-desired within a culture or society. The ability to purchase or finance a luxury item is directly proportionate to ones' income or assets. In other words, as people move into higher income brackets they are more able and more likely to purchase more expensive luxury goods.

Luxury items are also known as "positional goods" because they signal that the owner has achieved a certain position or status within society to be able to afford them.

Investopedia Says

Investopedia explains 'Luxury Item'

Certain luxury items may be subjected to a specific tax or "luxury tax." For example large or expensive recreational boats or automobiles can be subject to a federal tax. The U.S. levied a luxury tax on certain automobiles in the 1990s but ended the tax in 2003. Luxury taxes are considered progressive because they typically only affect people with high net wealth or income.



Articles Of Interest

  1.

    Stop Keeping Up With The Joneses - They're Broke

    Conspicuous consumption could be robbing you of future wealth.

  2. Investing In Leisure Funds

    If you thought investing and fun don't go together, think again. Find out more here.

  3. Financial New Year's Resolutions You Can Keep

    Start the year off right by evaluating your financial health and setting new goals.

  4. Warren Buffett's Frugal, So Why Aren't You?

    The Oracle of Omaha has a net worth in the billions, but his lifestyle is not as rich as you may think.

  5. 3 Simple Steps To Building Wealth

    Getting richer is easier if you take it one step at a time.

  6. 5 Resources To Learn To Retire Rich

    Find out what you need to know to plan for retirement, and which resources do the best job of showing the way.

  7. McMansion: A Closer Look At The Big House Trend

    The average home size is now 2,500 square feet - how big should you go?

  8. Plan To Retire Rich

    Don't just hope for the best - develop a course of action to achieve your goals.

  9. Socially Responsible Investing Vs. Sin Stocks

    Can your principles make you richer or poorer? Find out if it pays pick your portfolio based on ethics.

  10. 10 Steps To Retire A Millionaire

    Making this dream come true takes work, but it's well worth the effort.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center