In his speech, he made one great point. On one wrist, he had a $25 Timex watch from Target. On the other wrist, he had a $25,000 Rolex.
He said that the Timex worked perfectly for years, never needed a new battery, and kept perfect time. It was cheap, efficient, and did the job. His Rolex needed maintenance, new batteries, and was more for looks than for practical purposes.
What is the point of this? You do not need a BMW SUV when a Toyota Corolla or Honda Civic will do the job. They are cheaper and more reliable. You do not need a mansion that you can't really afford when a condo would be best for your situation. You do not need a $1,000 plasma HDTV when a 20″ TV would be fine.
There is a difference between buying something you need and buying something practical that you need. Keep that in mind when your car starts to look rusty or your TV dies on you. It is fun to have luxury and status, but it is practical to have what you need and no debt.
Have you ever bought something fun and regretted it later? I would love to hear about it in the comments.