Finance, but make it Fashion | Bags for Breakfast

Finance, but make it Fashion |Bags for Breakfast

Do you want to start growing your financial portfolio and make investments but don’t know where to start? Financial literacy is learnt with time and experience, you may not be great at understanding numbers or stocks, and that’s okay. 

Start with your passions! 

The best tip you’re ever going to get is, start with what you know! And at Bags for Breakfast, we know handbags! So let me tell you how your handbags can actually be passion assets.

Passion assets are tangible, non-financial assets that are typically acquired and held for their sentimental, aesthetic, or exclusive value, rather than their financial return, even if they are proven to appreciate over time. Examples of passion assets include, rare wines, art collections, jewelry, and of course, handbags!

By investing in the right handbags, this unique type of investment will defy traditional economic principles and traditional investment metrics such as earnings or dividends, because they have a proven inverse relationship between price and demand. Meaning, your luxury item always steadily appreciates in value. And with an asset like handbags, you can now even experience immediate ROI.

So which handbag is the right one to be investing in?

Hermes Birkins and Kelly's are the handbags that are passion assets for several reasons. Birkins and Kelly's are rare and exclusive. They are handmade by skilled artisans and are produced in limited quantities, and acquiring one directly from Hermes is typically a lengthy process. This exclusivity and rarity make Birkin bags highly coveted, driving up their value.

In addition to their exclusivity, these bags are made to last for lifetimes. The quality and craftsmanship behind these bags are in a class of their own. They are made with high-quality materials and are designed to last for many years with proper care and maintenance. As a result, well-maintained Birkin not only retains its value and appreciate over time, fetching an impressive consistent growth year after year. So impressive that even in 2020 it still increased in value by 8% and then experienced an even more impressive increase of over 20% in 2021 as the pandemic ended.

Birkin bags also have a storied history and cultural significance, adding to their appeal as a passion asset. For those who don't know the origin, the Birkin was originally created for the actress Jane Birkin in the 1980s, and the Kelly for Grace Kelly, and have since become a symbol of luxury and status. I'll write a separate blog on the stories behind each bag. Considering their history, owning these bags provides a sense of connection to the fashion world and the iconic figures who have carried them, adding to their sentimental value.

The best advantage of passion assets is that they are your passion! This sounds so simple, but invest in what you love! This kind of investment isn’t about an impossible numbers game, it’s about acquiring an asset that you can love and enjoy. 

By investing in something you are passionate about, offer a unique and enjoyable ownership experience, beyond their potential financial return. When you own a certain handbag that you saved to invest in, you will get a sense of pride and enjoyment that goes beyond its monetary value.

Also, unlike some other passion assets, like wines or certain cars, handbags as an asset don’t require any costly maintenance or require specialized expertise to manage and preserve.

Keep in mind this is more of a long-term investment since it is selected with the purpose of using and enjoying. So when choosing a handbag, it should be approached with careful consideration of what you love, and for a long-term investment horizon. I’ll write a separate blog on what are things to consider when selecting a preloved handbag as an asset.

Overall, if you love fashion, handbags, and you have money that you'd like to invest, this is a great option for you since Birkins can potentially offer a higher return than stocks or bonds. And finally, I am not a finance expert, but I am a handbag expert, so even though this is proven advice, I do feel it is important to mention that you should always do your own research or consult with financial professionals to ensure that the investments you choose are managed effectively and meets your overall financial goals and objectives.