At what net worth, income, etc. can I justify purchasing a watch for $5k?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
jello_nailer
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by jello_nailer »

wrongfunds wrote: Tue Oct 19, 2021 3:38 pm Deja Vu all over again? I think there is a classic thread about 5K watch with zillion replies.

How many watch threads do we need?
I believe the classic thread was about WHICH $5000 watch to buy and the answer was overwhelmingly, you must be an idiot to make such a purchase. You should find the North Star, get a stick, jam said stick in the ground and at North Star. Read time. 0$ cost, in 50 years you will be rich.

So this thread asking permission to buy the $5000 watch... could cause the servers to go down.
FoolMeOnce
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by FoolMeOnce »

$5k is not going to make or break you over a lifetime. As long as you can cover food, shelter, and other necessities for you and yours, it's fine. Can't say it's smart, but watches aren't my thing.
MAKsdad
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by MAKsdad »

manuvns wrote: Tue Oct 19, 2021 3:39 pm the day you make 5k in a day or week ,just make sure the watch will hold it's value well .
So with a $500k portfolio, there are plenty of days where you can make $5k in a day. Done and done, buy the watch!
dboeger1
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by dboeger1 »

I'll just share my experience as a data point. It may or may not be helpful. When I first started dating my wife before we were married, she kept saying she wanted to buy me a watch as a gift. I think part of that is just Chinese culture. Chinese people aren't necessarily more or less materialistic than Americans, but they are known for flaunting wealth status symbols in public to appear wealthier than they are, whereas I think with Americans, it's more of a sense of entitlement than keeping up appearances (these are of course stereotypes and will vary from person to person in any culture). It makes sense that a common gift for men in China is a nice watch. It's basically the primary piece of men's jewelry in most developed societies.

I'm not nearly as materialistic as the average American, but I'm also not really a minimalist or anything, and there are plenty of things I would enjoy if not for the cost and ongoing obligations. A watch is something I never really wanted, and I tried to convince her that it would just be an annoyance to me. However, she kept insisting that it was something she wanted to get for me as a token of love. One time I was visiting her in mainland China, and we took a trip to Macao and Hong Kong before returning to her home. In the airport in Hong Kong, she saw a Swatch shop and said she was buying me a watch there. I kept telling her it was silly and that I didn't need a watch, but she insisted. I didn't know anything about watches or brands so I had no idea if she was getting a good deal, but she didn't care. She spent about $125-$150 I think, when all was said and done. Later, after I had come back to the US, I did some research, and that's when I learned that Swatch essentially makes and sells limited editions as their business, so my model was specific to the time and place it was purchased. I thought that was kind of neat.

Years later, we're married and living in the US. I almost never wear the watch, but every once in a while when we go on road/camping trips or other vacations, I do wear it as an excuse to not carry my phone around so I can unplug from society. In terms of utility, I wouldn't say it was worth $150 given that we could have just as easily bought a digital Casio for <$20. But sentimentally, it has become an increasingly meaningful gift over time, and I cherish it. $150 is trivially affordable for us now, but it wasn't when she bought it because we were both university students at the time. And in some weird way, it feels like a symbol that my wife was going to love me whether I wanted it or not, lol. Now when I wear the watch on vacation, it just serves as a reminder of those days when I was more adventurous and wanting to travel the world and learn new languages and cultures. I like looking at the watch and knowing that I probably couldn't buy it today because it was a limited edition. In retrospect, I have no problem knowing she spent $150 on it.

Obviously, my $150 Swatch is not whichever $5k watch you're considering, but I guess the point of my story is that you should not feel obligated to buy a watch just to keep time or meet other people's fashion expectations. Buy it because you treasure it. Attach some personal significance to it. That's what will make it worth it. If you offered me $150 or the watch back then, I would have taken the money and spent it on food. If you offered me $150 for the watch today, I probably wouldn't sell it for that amount.
EdNorton
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by EdNorton »

It took me a week to decide and splurge on a $250 driver, I'm worth slightly north of $3M. Applying those parameters, I come up with $60,000,000.

Glad I splurged.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by calmaniac »

MAKsdad wrote: Tue Oct 19, 2021 12:25 pm I think frugality is a combat sport for some people on this forum.
Point well taken. However, OP did pose the question...and as such did get candid answers.
HomerJ wrote: Tue Oct 19, 2021 2:37 pm
BMWrider1986 wrote: Tue Oct 19, 2021 2:30 pm If you enjoy a nice watch - get it. It will become an item to pass onto your children or grandchildren.
Point #1 is good
Point #2 is unlikely. The children and grandchildren almost certainly won't care. Definitely not the grandchildren. :)
I have a 1950 Hamilton wristwatch with an 18 carrot gold band that I inherited from my grandfather. I've worn it twice in 30 years.
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holawhatup1
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by holawhatup1 »

doesn't your phone already have a clock?
Independent George
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Independent George »

bigtex wrote: Tue Oct 19, 2021 9:59 am Can someone help me decide if it is crazy to own a $5k watch at a net worth level of $500k, or income of $100k etc. should my watch collection never exceed 1% of my net worth or some metric like that? How do I keep this purchase within reason to my income and net worth age etc?
There is no formula for it; it's an emotional decision rather than a financial one. If you're comfortable putting a $5,000 line item in your budget, it really doesn't matter what you're spending it on - it could just as easily be a painting, a bottle of wine, a rare collectable, or a bicycle. Just understand that you're making a luxury purchase for your own enjoyment; the resale value or status associated with it is meaningless.

Last, a lot of BHs have the mentality that if they're not interested in a particular hobby, then nobody else should be, either. Ignore them. If you enjoy it, and can afford it without affecting your savings goals, then go ahead an buy it. Otherwise, wait until you can, and buy it without guilt or remorse.
wrongfunds
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by wrongfunds »

viewtopic.php?f=11&t=27707
Total number of replies 1480 - Locked

Continuation of the above thread Unlocked
viewtopic.php?t=316440

Should keep OP busy for few hours!

One can also find few other favorite topics as the what is the net worth/income is necessary to buy your 1st New Corolla or Tesla or McLaren. There are at least dozens where a typical BH is going through the agony of purchasing a Tesla vehicle, yours truly included.

I can give you "TLDR" of it though. You need 8-figures net worth before you are allowed to purchase a brand new vehicle. Oh, and if you have to ask, you can NOT afford it.

Hope this helps.
Young Boglehead
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Young Boglehead »

Buying a 5000 dollar watch is an absolute and complete waste of money and is a terrible sign for your ability to accumulate wealth.

Spending 25k on a car when you could have spent 20k, though, would be totally reasonable!
lws
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by lws »

Forget about net worth.
Buy the watch if you want it and you think it will bring you joy.
skierincolorado
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by skierincolorado »

Never. People are starving.
DesertGator
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by DesertGator »

skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
Ah. What about the watchmakers families.. if nobody ever buys watches wont they starve?

How do you justify owning a computer when people are starving?
DesertGator
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by DesertGator »

bigtex wrote: Tue Oct 19, 2021 9:59 am Can someone help me decide if it is crazy to own a $5k watch at a net worth level of $500k, or income of $100k etc. should my watch collection never exceed 1% of my net worth or some metric like that? How do I keep this purchase within reason to my income and net worth age etc?
1. Can you afford to buy it without incuring any new debt, or slowing the pay down of existing debt?

2. Can you afford to buy it and still stick with your IPS?

3. Are you sure there isn't a better or more time sensitive use of these funds for you?

These are my suggested questions to ask yourself.... And then if you do buy it, ENJOY!
skierincolorado
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by skierincolorado »

DesertGator wrote: Tue Oct 19, 2021 4:45 pm
skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
Ah. What about the watchmakers families.. if nobody ever buys watches wont they starve?

How do you justify owning a computer when people are starving?
The watchmaker will be fine. Donate the money a charity with a focus on long term development of human and physical infrastructure.
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CRC_Volunteer
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by CRC_Volunteer »

Independent George wrote: Tue Oct 19, 2021 4:05 pm
bigtex wrote: Tue Oct 19, 2021 9:59 am Can someone help me decide if it is crazy to own a $5k watch at a net worth level of $500k, or income of $100k etc. should my watch collection never exceed 1% of my net worth or some metric like that? How do I keep this purchase within reason to my income and net worth age etc?
There is no formula for it; it's an emotional decision rather than a financial one. If you're comfortable putting a $5,000 line item in your budget, it really doesn't matter what you're spending it on - it could just as easily be a painting, a bottle of wine, a rare collectable, or a bicycle. Just understand that you're making a luxury purchase for your own enjoyment; the resale value or status associated with it is meaningless.

Last, a lot of BHs have the mentality that if they're not interested in a particular hobby, then nobody else should be, either. Ignore them. If you enjoy it, and can afford it without affecting your savings goals, then go ahead an buy it. Otherwise, wait until you can, and buy it without guilt or remorse.
+1

Also, mechanical watches (aka Automatic) are resistant to EMP. Just figure I would go off the deep end.
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MMiroir
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by MMiroir »

skierincolorado wrote: Tue Oct 19, 2021 4:50 pm The watchmaker will be fine. Donate the money a charity with a focus on long term development of human and physical infrastructure.
Well, Rolex is owned by a charity.......
jello_nailer
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by jello_nailer »

EdNorton wrote: Tue Oct 19, 2021 3:54 pm It took me a week to decide and splurge on a $250 driver, I'm worth slightly north of $3M. Applying those parameters, I come up with $60,000,000.

Glad I splurged.
:sharebeer
How long?
That's pretty cheap if he will drive you around for a month...
I might do that.
:sharebeer
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Wanderingwheelz »

GP813 wrote: Tue Oct 19, 2021 2:28 pm
Grt2bOutdoors wrote: Tue Oct 19, 2021 10:04 am The watch will cost you more than $5k. It’s the opportunity cost of losing out on the compounding returns on $5k. I don’t believe Warren Buffett wears a $5k watch.

But you should ask Petrocelli.

Buffet wears a gold Rolex Day Date that he's owned for many years. A new one from Rolex would be around $35k retail. Buffet is enamored with the business of Rolex and has offered to buy the company many times. Rolex is not selling, they operate as a non-profit, and in recent years they've had insane demand for their watches especially the plain stainless steel "sports" models.

A man/woman with a good career can easily justify a good watch as an expense. It's one of those heirloom pieces that if you buy right you can pass on decades later. If it's a mechanical watch it will have servicing costs down the road. But if you get into watch collecting, watch out, it can add up quickly.
My wife’s Rolex was purchased at Ben Bridge which is a fully owned subsidiary of Berkshire Hathaway. I’m not the least bit surprised Buffett wears a Rolex.
Being wrong compounds forever.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Vtsax100 »

If you want the watch buy it. It will make no difference to you financially. It will be a $5000 education about how you want to spend your money in the future.
Coburn
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Coburn »

As I read through all the subsequent posts, some of which are deliciously funny because they contain non sequiturs...I am reminded of a funny clip from the movie, "She's The Man". Those of you with access to the movie, fast-forward to 33:07 and watch the ensuing minute. :wink:

OP: if you want to get that "knowing nod" which watch wearers give each other as acknowledgement.....well, you know what you have to do. :P
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HomerJ
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by HomerJ »

Coburn wrote: Tue Oct 19, 2021 5:54 pm OP: if you want to get that "knowing nod" which watch wearers give each other as acknowledgement.....well, you know what you have to do. :P
Creepy!
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Coburn
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Coburn »

Wanderingwheelz wrote: Tue Oct 19, 2021 5:44 pm
GP813 wrote: Tue Oct 19, 2021 2:28 pm
Grt2bOutdoors wrote: Tue Oct 19, 2021 10:04 am The watch will cost you more than $5k. It’s the opportunity cost of losing out on the compounding returns on $5k. I don’t believe Warren Buffett wears a $5k watch.

But you should ask Petrocelli.

Buffet wears a gold Rolex Day Date that he's owned for many years. A new one from Rolex would be around $35k retail. Buffet is enamored with the business of Rolex and has offered to buy the company many times. Rolex is not selling, they operate as a non-profit, and in recent years they've had insane demand for their watches especially the plain stainless steel "sports" models.

A man/woman with a good career can easily justify a good watch as an expense. It's one of those heirloom pieces that if you buy right you can pass on decades later. If it's a mechanical watch it will have servicing costs down the road. But if you get into watch collecting, watch out, it can add up quickly.
My wife’s Rolex was purchased at Ben Bridge which is a fully owned subsidiary of Berkshire Hathaway. I’m not the least bit surprised Buffett wears a Rolex.
At the Berkshire Hathaway annual meetings, some of the board visit a certain watch establishment.

WIS abound when you know where to look. :wink:
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Taylor Larimore
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Taylor Larimore »

Bogleheads:

At the end of World War II I was in Bern Switzerland wondering what to do with my accumulated savings. I decided to buy watches for my parents and my younger brother.

I walked into a very small store selling watches. The single proprietor was an old man whom I asked (from memory); "I would like to send watches to my mother, father and brother. What do you recommend?"

The proprietor brought out 3 moderately priced Rolex watches. I never heard the name "Rolex" but I bought anyway. The watches arrived in Miami several weeks later.

The three Rolex watches are still working and remain in my family today (personally, I prefer a count-down Timex."

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "I could barely climb the stairs, and I was placed on Status B on the waiting list for a transplant. But you have to be Status A to get top priority. Good news (in a sense) my condition deteriorated! I was placed on Status A in the summer of 1995, and was admitted to Philadelphia’s Hahnemann Hospital on October 17, 1995. Just the day before, an optimistic omen: I received in the mail a wristwatch from a devoted shareholder in California. On the dial were printed our Vanguard logo, my name, and a phrase that was an indication I was still looking out for our shareholders: "Still on Watch." It was also an outrageous pun: "Still on Watch." Confident that it would be my rabbit’s foot, I put the watch on my wrist, where, having proved itself, it remains to this day. (Yes, I knew about the $50 limit on gifts. So I checked the catalog for the price. It was $14. Talk about value!)" (underline mine)
Last edited by Taylor Larimore on Tue Oct 19, 2021 7:08 pm, edited 1 time in total.
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AnnetteLouisan
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by AnnetteLouisan »

Ordinarily I‘d say its not worth it, but it depends what it means to you and how you arrived at this strange place that is 100k& income and 500k net worth.

I assume it wasn’t an easy journey. If it was a really really hard journey and it’s part of your bargain with yourself to keep giving your all, and it has symbolic significance of some kind, and keeps your morale up as you continue your professional and personal ascent, it may be well worth it. I think these are called aspirational purchases in the ad world.

I remember a beautiful but expensive Bosco womens leather wallet I treated myself to in 1994 or something when I started my first big deal job. The symbolism was my commitment to improving my financial condition through work, and it was an expression of confidence in myself to be a prudent steward, despite various obstacles. $75 for a wallet was frivolous at the time but it meant something important to me and ended up being a wise purchase. It was not about impressing anyone else.

You will find that the more you succeed the fewer trinkets you need or want. I think that is evident in the comments. Good luck whatever you decide!
Last edited by AnnetteLouisan on Tue Oct 19, 2021 7:27 pm, edited 1 time in total.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by AnnetteLouisan »

TropikThunder wrote: Tue Oct 19, 2021 12:40 pm
Coburn wrote: Tue Oct 19, 2021 12:36 pm Life is short and when you die, you can't your money take it with you.
You can take the watch with you though. :D
😂😂😂😂🤣🤣😆👍🏻
gogreen
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by gogreen »

skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
Yup. Moreover if you had 3 meals today you caused few deaths in Africa :oops:
Life is not fair.
PS brb - need to cook a 2.6 pounds tomahawk steak :sharebeer
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by gubernaculum »

As many have posted, its a jewelry. But to me its more than that. A marvel of automatic watch, doesnt require daily charging (iwatch), and they do provide a function: time and usually date. I personally just purchased Grand Seiko, spring drive movement, SBGA413, an incredibly precise automatic movement that has quartz component and it did cost me. But I love wearing it and looking at the gliding second hand.......to me, it was worth the thousands I paid. I am not a collector. I purchased one, and it will last me.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by bradinsky »

It’s kind of weird asking perfect strangers if you should buy an expensive watch. If it’s okay with your significant other & you want it & can afford it, then buy it. I’m sure that many here on this forum can pinch a penny until it melts & wouldn’t spend anything unless absolutely necessary. BUY IT & don’t look back.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by HenryG »

bigtex wrote: Tue Oct 19, 2021 9:59 am Can someone help me decide if it is crazy to own a $5k watch at a net worth level of $500k, or income of $100k etc. should my watch collection never exceed 1% of my net worth or some metric like that? How do I keep this purchase within reason to my income and net worth age etc?
For one-time discretionary purchases, I find the following net worth thresholds helpful to sanity-check a purchase:
.01% of net worth, don't worry about it
.1% of net worth, put some thought into it
1% of net worth, really think about it

Personally, I would tie a purchase like this to income rather than net worth and perhaps a meaningful milestone. I've made a few luxury purchases, around 5% of a performance bonus as an example, to treat myself and 'memorialize' an event. If I'm on track with my savings goals and I'm cash-flow positive with income, it's no big deal.

That being said, I would not recommend a 5k watch (or watch collection) to someone with a 500k NW and a 100k income.
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TxAg
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by TxAg »

Seems like an extravagance.

Maybe you love watches, and watches are your world outside work. In that case, sure buy it. I love to hunt and don't mind spending some $ on it.

If you just like watches and want a nice one, then find a deal for sub $1k.
FoolMeOnce
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by FoolMeOnce »

DesertGator wrote: Tue Oct 19, 2021 4:48 pm 3. Are you sure there isn't a better or more time sensitive use of these funds for you?
Unlikely.

:wink:
jarjarM
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by jarjarM »

DW would love to buy one of these but I should show her this thread. Which also means my R8 is down the drain :oops: :twisted:

Van-Clee Watch
rockstar
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by rockstar »

Expensive watches yell out: salesmen.

Are you in sales?
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Nate7out »

I also want a nice watch. My dad gave me a swiss watch (but not luxury) for my highschool graduation. I wore it every day for 15 years. Then I bought another decent watch ($700ish) and have worn it every day for 10 years. I've always liked watches. Around my 40th birthday I told my wife I wanted a Rolex or Omega once we hit a milestone. I was thinking in my head it would take 10 years or so to hit that milestone, but it took 3. So I am not ready yet mentally to buy it, but close.

I would say that if you just thought of it last week, you can't afford it. If you've always wanted it, then maybe. Most used Rolex watches have appreciated in the past several years.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by bhough »

skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
This is the right answer actually.
B
Nate7out
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Nate7out »

bhough wrote: Tue Oct 19, 2021 8:48 pm
skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
This is the right answer actually.
B
People are starving today. You shouldn't invest anything for tomorrow until everyone has their needs met today. Definitely shouldn't go skiing while people are starving.
TropikThunder
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by TropikThunder »

skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
Poe's Law: Without a clear indicator of the author's intent, every parody of extreme views can be mistaken by some readers for a sincere expression of the views being parodied.

TL/DR: I can't tell if you're kidding.
Independent George
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Independent George »

I will add one thing: if you're new to the watch collecting hobby, your first watch should probably not be a luxury watch. Start with something cheaper to get an idea of what you want in a watch, and how it wears on your wrist, before you put down $5k. Don't judge a watch on its brand name or its price tag - first figure out what you like, and why, before deciding on what to buy. Just buying a Rolex purely out of name recognition is like buying a Mercedes without test driving it; sure it's a great vehicle, but it may not actually be right for you.

There are a great many expensive watches I find ugly as sin (*cough* Royal Oak *cough*). There are a absolutely gorgeous watches that I love, but which just don't fit my wrist right (Grand Seiko Snowflake). And then there are relatively inexpensive watches which I absolutely adore (Hamilton Khaki Field). Figure out what suits you before committing a few thousand dollars to it.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by GP813 »

Taylor Larimore wrote: Tue Oct 19, 2021 7:06 pm Bogleheads:

At the end of World War II I was in Bern Switzerland wondering what to do with my accumulated savings. I decided to buy watches for my parents and my younger brother.

I walked into a very small store selling watches. The single proprietor was an old man whom I asked (from memory); "I would like to send watches to my mother, father and brother. What do you recommend?"

The proprietor brought out 3 moderately priced Rolex watches. I never heard the name "Rolex" but I bought anyway. The watches arrived in Miami several weeks later.

The three Rolex watches are still working and remain in my family today (personally, I prefer a count-down Timex."

That's a cool story thanks for sharing. Do you remember the models you bought them?

There was a gentleman on Antiques Roadshow who was stationed in Germany and brought back two Rolex watches, one for dad and one for himself. The GMT watch in this video is more collectable now than ever but in the video he's wearing his $10 Casio.

https://www.youtube.com/watch?v=li0mRLcGbU8
Last edited by GP813 on Wed Oct 20, 2021 1:02 am, edited 1 time in total.
H-Town
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by H-Town »

bigtex wrote: Tue Oct 19, 2021 9:59 am Can someone help me decide if it is crazy to own a $5k watch at a net worth level of $500k, or income of $100k etc. should my watch collection never exceed 1% of my net worth or some metric like that? How do I keep this purchase within reason to my income and net worth age etc?
When I want something, I buy it. I spent 8k on vacation this year without hesitation.

Why are you asking advice on here if you want it bad enough? Why do the opinions of strangers carry any weight on buying what you want? Maybe asking your spouse is the right move here. Your spouse should get half the benefit of it, right?
Time is the ultimate currency.
JDave
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Joined: Tue Oct 29, 2019 9:23 am

Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by JDave »

Take a look at the Archieluxury YouTube channel. He's bought watches costing tens of thousands using credit cards, while broke!

1. do you have your heart set on a luxury watch?
2. do you understand if you buy it, hedonistic adaptation will set in?
3. do you know that luxury watches require regular, very expensive servicing ($1,000 for a Patek Philippe service)?
4. do you understand the only person who will be impressed by your watch will be you?
jharkin
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Location: Boston suburbs

Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by jharkin »

I only skimmed the thread, but I am sure that the word "watch" is part of what is making the thread so contentious (Legacy of Petrocelli ? ;))

Substitute "Used Miata sports car" for "watch" and a chunk of the forum will start saying YOLO and praising your frugality for not blowing big money on a new Ferrari/Porsche/Tesla plaid edition/(insert exotic here).

Another data point. My sister spent more than that much on a single mountain bike. And she has multiple bikes. I don't know her exact income but based on her career I can guess its probably never broke 100k. And she has a ton of school debt and has been though a divorce. But that bike is her biggest joy in life and has led her on lots of adventures and meeting new people and helped her get back to a busy social life after her ex- would you say that was an indulgence?

Or me... I have an unusual hobby I play with large remote control airplanes. The group I am part of we can spend that kind of money building one and a most of us have multiple, plus vehicles to haul them, club dues, event expenses, FAA licensing and insurance fees, etc. Is my house paid off and my kids education 100% pre-funded? No, but we are on track to do so and retire well before 60 even with my hobby expenses, and that hobby brings me much enjoyment, life long friendships around the world and will be a big part of my retirement activity most likely.


Point is, this is a decision only you can make. If the purchase improves your enjoyment of life and doesn't put you off track from your goals what business is it of the scrooges at Bogleheads to tell you otherwise?
bradinsky
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Location: Ohio

Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by bradinsky »

H-Town wrote: Tue Oct 19, 2021 11:25 pm
bigtex wrote: Tue Oct 19, 2021 9:59 am Can someone help me decide if it is crazy to own a $5k watch at a net worth level of $500k, or income of $100k etc. should my watch collection never exceed 1% of my net worth or some metric like that? How do I keep this purchase within reason to my income and net worth age etc?
When I want something, I buy it. I spent 8k on vacation this year without hesitation.

Why are you asking advice on here if you want it bad enough? Why do the opinions of strangers carry any weight on buying what you want? Maybe asking your spouse is the right move here. Your spouse should get half the benefit of it, right?
+1000
Tooth
Posts: 152
Joined: Sun Mar 28, 2021 3:41 am

Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Tooth »

Simple answer is you need 5K. If you want it and have the money, buy it. However, I believe if you have to ask if something is right and you hesitate, it is probably not right. I would not pay 5K for a watch...better to spend on a nice trip, good food etc.
stoptothink
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Joined: Fri Dec 31, 2010 8:53 am

Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by stoptothink »

Nate7out wrote: Tue Oct 19, 2021 8:54 pm
bhough wrote: Tue Oct 19, 2021 8:48 pm
skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
This is the right answer actually.
B
People are starving today. You shouldn't invest anything for tomorrow until everyone has their needs met today. Definitely shouldn't go skiing while people are starving.
I assume anybody who makes such a comment is being facetious. I thought lack of self-awareness that extreme was only for celebrities and politicians who globetrot to climate change conventions on private jets. Nobody here can play the "I care more than you" card that hard, right?
Last edited by stoptothink on Wed Oct 20, 2021 7:32 am, edited 2 times in total.
eddot98
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Location: The Berkshires

Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by eddot98 »

I own a few watches, but I certainly don’t consider myself a collector. My daily wear is a tank watch made by SWI with a black face and a black leather band. It probably cost $30 at TJ Max. I’m probably on my fifth or sixth leather band, usually purchased on eBay for less than $5 each.
I have a Geneve 14 carat gold watch that DW bought for me for a special occasion for $150 on clearance at TJ Maxx several years ago. I am afraid to wear it as I tend to damage things easily. I have probably worn it less than 10 times.
I have a Tommy Bahama watch that I bought on clearance at TJ Maxx for $79. It’s nice, but I’ve never worn it. I regret buying it. Impulse purchase.
I have a Rotary waterproof watch, that was also bought on clearance at TJ Maxx for $29. It’s too big to wear. I have worn it several times, but it’s unwieldy and mostly won’t fit under the cuff of a long sleeve shirt. I can’t change the battery myself, so I have to bring it to the local jeweler for that.
So, I have 4 watches, that cost less than $300 total. And, I have too many.
We have 60x expenses (after a pension and SS) and I would never even think about spending $5000 for a watch.
RoadagentMN
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by RoadagentMN »

skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
I’m not starving anyone- my money my rules.
skierincolorado
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by skierincolorado »

RoadagentMN wrote: Wed Oct 20, 2021 9:10 am
skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
I’m not starving anyone- my money my rules.
That doesn’t address the issue at hand. What *should* you do with your money.
skierincolorado
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Joined: Sat Mar 21, 2020 10:56 am

Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by skierincolorado »

Nate7out wrote: Tue Oct 19, 2021 8:54 pm
bhough wrote: Tue Oct 19, 2021 8:48 pm
skierincolorado wrote: Tue Oct 19, 2021 4:33 pm Never. People are starving.
This is the right answer actually.
B
People are starving today. You shouldn't invest anything for tomorrow until everyone has their needs met today. Definitely shouldn't go skiing while people are starving.
There is a limit to excess. My personal limit is spending 5k on a status symbol. The author asked for opinions, well that is mine.
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