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The meaning of luxury is very flexible, it can mean many things. Sitting on a wooden bench is austere but putting a cushion on it is luxury; eating curd rice is austere whereas eating a full course dinner is luxury. In other words when we pamper our senses, indulge them in pleasure instead of just satisfying a basic need it is luxury- extra comfort, not utterly necessary but happy to have.
Whatever is almost beyond one's means, affordability is also called a luxury. This may vary from person to person- to a person who can afford to buy only a bicycle , a bike is a luxury; to a person who owns a bike but cannot buy a car then the four-wheeler is a luxury. The modes of travel-by train or plane, the class we travel by, A/C or non A/C, the resorts you can visit often, the theatres, malls you can visit all have a benchmark of luxury.
Without affordability factor and indulgence of senses, luxury can also mean something you are fortunate to get most unexpectedly- after wandering in scorching summer in a remote village a glass of cool pot water can be a luxury- more satisfying and rarely found- than an icecream, a milkshake or tender coconut!
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