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

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

Post by TropikThunder »

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

Post by Ron Ronnerson »

You have to make tradeoffs in life. If the watch is important enough to you, then buy it with the understanding that you’re giving up other things in exchange. I personally find it less crazy when someone spends $5k on a watch than when somebody buys a luxury car. I can’t imagine spending more than $100 on a watch but it isn’t a priority for me. I also drive a Corolla that I plan to use for 15 years or more.

While I could afford to buy a luxury watch and buy a pricy car that I replace more often, I much rather prefer to invest the money (so I can retire sooner rather than later) or use it toward things like getting my house cleaned (which buys me time and saves me energy) or go on vacations with my family (to buy experiences and make memories). Maybe you’re willing to delay your retirement by a few months or go on a shorter vacation next year in exchange for the watch. There’s nothing wrong with those choice. Just make them with eyes open.

Enjoy the watch if you buy it!
TheHiker
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by TheHiker »

You are making money to spend it on the things you like. It does not make much sense to save money you don't expect to spend.
It can be fancy cars, vacations, hobbies, jewelry, fancy dinners, stamp collections or what not. Everyone's wants are different.
E.g. I would not buy a 5K watch, but I just spent 5K on a boat building project (which most people would consider excessive).

You should allocate a "fun" budget to spend on whatever you want and then stay within this budget for spending on things you like.
I don't think this budget has to be a percentage of either the net worth or the income, but you should analyze the tradeoffs for your situation.
E.g. spending 5K per year on fun things will delay my retirement by X years. Is it worth it?
Last edited by TheHiker on Tue Oct 19, 2021 12:44 pm, edited 1 time in total.
namajones
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by namajones »

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?
The less you want, the more you have.
MAKsdad
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by MAKsdad »

namajones wrote: Tue Oct 19, 2021 12:43 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?
The less you want, the more you have.
There's no honor in self denial.
gogreen
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by gogreen »

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?
If you are on accumulation phase you can set up your annual saving goals (100k or 1x or 2x or whatever). Once you reach it - spend the rest on whatever you want.
Da5id
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Da5id »

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?
Why do you care what others think? If you are comfortably meeting your savings goals and believe that augmenting your watch collection will bring you joy, go to it.

I personally am not into possessions like watches or high end cars or such, I'd rather spend lots of money on experiences such as expensive vacations. But we each have our own thing.
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Cheez-It Guy
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Cheez-It Guy »

For me, no level of income would justify this purchase.
grettman
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by grettman »

As others have said, if it brings you happiness and you believe you can afford it, buy it. Other people’s opinion on the matter should Not factor in your decision.
Coburn
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Coburn »

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
Sadly, my nephews and nieces are uninterested in my watches. I imagine DAVIDSW would be however. :)
WhiteMaxima
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by WhiteMaxima »

I never want a 5k watch. Neither I need. My Walmart $9.99 Casio watch is good enough for me.
namajones
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by namajones »

MAKsdad wrote: Tue Oct 19, 2021 12:49 pm
namajones wrote: Tue Oct 19, 2021 12:43 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?
The less you want, the more you have.
There's no honor in self denial.
This is not about honor. It's about contentment and wellbeing. A material possession is unlikely to provide either, in my experience. Much more valuable is an attitude of appreciating what you have. The burden of possessions is something we do not talk enough about. Clearly the possession that the OP is contemplating is burdensome even before acquisition.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by brad.clarkston »

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.
Warren Buffet's main house is just over $660,000, his wife's Laguna Beach house sold for $11 million, he almost never drives his $55,000 Cadillac XTS. I don't think a $5k watch would be something he would pass up if he liked it.
Last edited by brad.clarkston on Tue Oct 19, 2021 1:28 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 Kagord »

I've done some preliminary calculations, you should not buy a watch more than 0.0005% of your net worth. So let's see, $500,000.00 * 0.000005 = $2.50, I've found a luxury business watch, with leather, it has a quartz movement, which is better than any mechanical movement, for even less (before shipping, which I'm sure can be negotiated down to under $2.00).

https://www.amazon.com/Watches-Analog-F ... B08CXNMZPL

If you want a $5K watch, given the sound logic above, you need $1,000,000,000.00 USD.
Olemiss540
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Olemiss540 »

jebmke wrote: Tue Oct 19, 2021 10:03 am Doesn't matter. Only thing that matters is how this fits within your own spending mindset. If this were a car, you'd buy it for $5K right? Who is to say that the watch is more, less, equal value to you than that $5K car? Only you can answer that.
Can't sit on a watch while it transports you to collect your paycheck. I would say any rational person would say a $5k car is MUCH MORE valuable to any person than a $5k watch.

OP,

I would say the same thing as I would tell my wife looking at ANY piece of jewelry (which is exactly what a $5k watch is) since I can't relate directly in desire for a rolex. Whenever it fits in the budget and does not negatively impact more important short or long term goals. I am guessing she would think that is somewhere between $2M networth and $4M net worth but that's purely an educated guess. At 500k NW, I think that would be more around $1k or $1500 which just happens to be the cost of a recent 10 yr anniversary present.......
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Jags4186
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Jags4186 »

As with anything, as long as you have your financial house in order you can spend on whatever you want.

I’ve jonesed over fancy watches many times but never pulled the trigger. My wife would never go for it (although she hardly complains about the multiples of $5000 watches sitting on her ring finger…).

I would say if you want the watch, go find yourself a creative way to fund it. For example, over the next year or two focus on opening up credit cards and bank accounts that offer bonuses until you get yourself $5,000 in rewards. Credit card bonuses have never been higher than they are now. Then go buy the watch.
Last edited by Jags4186 on Tue Oct 19, 2021 1:37 pm, edited 1 time in total.
wolf359
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by wolf359 »

sc9182 wrote: Tue Oct 19, 2021 11:55 am
wolf359 wrote: Tue Oct 19, 2021 11:47 am There is no need to justify a consumption expense. If you want it, and it fits into your budget (you can still meet your financial goals), then you can get it. Consumption expenses are based on your values and resources. If you want to spend all your grocery budget on steak, buy a steak. If all you can afford is chicken, skip the steak. If you value a $5,000 watch over other things you could spend that money on, and you have the money, go for it. You're the adult making decisions about your spending. You have full responsibility for the outcomes.

If you have $5,000 in one hand, and the watch in another, and you have to pick only one, which would you pick?

It's your money and your values. You don't need to justify your decisions to anybody.

The only caution I'd make is the potential for lifestyle creep. If you are wearing a $5,000 watch and then drive off in your 1995 Toyota Corolla, people will assume the watch is fake. If you now feel the need to upgrade to a late-model German car, or simply hang out with people for whom a $5,000 watch is normal, that could derail your financial plans.
In current market a working 1995 Corolla in good condition has appreciated (and been appreciating) Asset with minimal maintenance costs! Does that OP Watch/Chronograph match that :-)
Even with appreciation, $5,000 is still about 4X-5X the value of the car.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by DoubleComma »

Why do you have to justify it?

If you can afford it, want it, can see the personal value in it and doesn't negatively impact your other goals then buy it.

I can't justify a second house; but we love it, use it a lot and can afford it.

I can't justify a $100k+ wake surf boat; but we love it, use it a lot and can afford it.

I would never own a $5k watch, because it doesn't have value to me. But you might never see value is a wake surf boat or a second home. This is where personal factors in more than anything else.

Like all toys, for me it must be debt free. If you can't do it debt free that would be only situation I would say don't do it. And yes, we are debt free on all of our toys and extravagances...soon to be inclusive of a mortgage free second home.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Lee_WSP »

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?
Within reason…

Well, since you added that particular stipulation, reason would say that it’s somewhere in between not caring at all about the purchase (eating out) and how you decide on your car budget.

It does retain value so long as you don’t lose or destroy it. So one way to figure it out is to determine whether your comfortable losing the entirety of the purchase price. One thinker in this area says that it should represent 1 basis point of your net worth.

Another way to look at it is to determine the cost of ownership. Cost to buy minus retained value when sold. If your comfortable spending this sum of money, you can afford the watch.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by aristotelian »

Up to you. I always ask myself if I would rather purchase X or have more to give to charity. An expensive watch would fail that test, personally.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by RJC »

wolf359 wrote: Tue Oct 19, 2021 11:54 am
theplayer11 wrote: Tue Oct 19, 2021 11:49 am
RJC wrote: Tue Oct 19, 2021 10:53 am What is the watch?
more like what is a watch. Hasn't smart phones eliminated watches?
These days, watches are turning into smart phones. (Apple Watch)
Ever since the Apple watch and it's capabilities, I have started to lose interest in nice (heavy) watches.
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JoeRetire
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by JoeRetire »

Coburn wrote: Tue Oct 19, 2021 12:36 pm OP: if getting a watch gives you joy, then buy it.
Is that the sole criterion?
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by justcruisin »

gogreen wrote: Tue Oct 19, 2021 12:56 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?
If you are on accumulation phase you can set up your annual saving goals (100k or 1x or 2x or whatever). Once you reach it - spend the rest on whatever you want.
THIS. I love watches myself and have a collection of 4. Buy what you love, with the understanding that certain watches will retain (or appreciate) better than others. That said, I don't see this as an investment and falls within my discretionary spending budget that is defined for the current year using the previous year's money. I may have exceed that this year due to a watch that was offered to me for retail that is worth quite a bit more, so made an exception that will be funded from my 2022 budget.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by calmaniac »

aristotelian wrote: Tue Oct 19, 2021 1:42 pm Up to you. I always ask myself if I would rather purchase X or have more to give to charity. An expensive watch would fail that test, personally.
KlangFool wrote: Tue Oct 19, 2021 10:36 am If you have to ask and think about it, you cannot afford it.
Not much more to add to these 2 spot on posts
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Wanderingwheelz »

On 1/21/2004 I bought a watch for $3,950 (I just checked the old receipt), brand new, that’s worth as much as $15,000 in the used marketplace today. I’ve worn it just about every day since then, and I had it serviced one time and that was complimentary since I negotiated it into my original purchase.

I guess what I’m saying is, if you buy the right watch I wouldn’t worry too much over it. The right high-end wristwatch will appreciate in value quite a bit.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by windaar »

Many gentlemen wear only 2 pieces of jewelry: a wedding ring and a watch. If you enjoy the romance of the mechanical movement and the beauty of the watch, there is no reason not to buy. A fine watch will keep most of its value or even gain value (see what has happened to pretty much all Rolex watches over the last few years) if you decide to sell later. You can also buy pre-owned from a reputable place like Tourneau and it will depreciate even less.
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MAKsdad
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by MAKsdad »

namajones wrote: Tue Oct 19, 2021 1:19 pm
MAKsdad wrote: Tue Oct 19, 2021 12:49 pm
namajones wrote: Tue Oct 19, 2021 12:43 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?
The less you want, the more you have.
There's no honor in self denial.
This is not about honor. It's about contentment and wellbeing. A material possession is unlikely to provide either, in my experience. Much more valuable is an attitude of appreciating what you have. The burden of possessions is something we do not talk enough about. Clearly the possession that the OP is contemplating is burdensome even before acquisition.
You're probably right. I just can't help but push back at a lot of the posts that I consider "virtue signaling". It's a bloodsport on here to see who can spend the least amount of money, which to me is just silly. I believe money is meant to make our lives better, not to be hoarded.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by alfaspider »

brad.clarkston wrote: Tue Oct 19, 2021 1:28 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.
Warren Buffet's main house is just over $660,000, his wife's Laguna Beach house sold for $11 million, he almost never drives his $55,000 Cadillac XTS. I don't think a $5k watch would be something he would pass up if he liked it.
As Buffet's behavior shows, there's no reason to spend money just because you have it. More money makes the things you want available to you, but if you already have what you want, more money doesn't create some obligation to buy more than that. The "traditional" billionaire lifestyle of a dozen homes around the world, megayachts, and multiple private jets involves a lot of logistical complications that may not be worth it to a lot of folks.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by MMiroir »

My wife got me a an IWC Pilots watch for our 10th anniversary many years ago. The cost was under $2,000, and at the time our net worth was probably between $300,000 to $400,000. I justified the gift because at the time I worked in a services firm that had many high income professionals. Most of the older ones had a Rolex of one sort or another, but the younger one gravitated to Panerai's which were the hot watch at the time. It was pretty common in the business that successful processionals had a fancy watch.

I ended up choosing the IWC because I didn't want a Rolex or a dress watch, and the Pilot's watch was understated yet professional to those who knew about watches. I have had it for more than 20 years, and wore it regularly. In family and vacation pictures, more often than not it shows up on my wrist. When I took my daughter to London a few years ago, we spent some time at the IWC store in Heathrow departures and she was disappointed that the company did not make any women's watches.

While the $2,000 cost did not materially impact my net worth, today I probably would not buy the watch for a couple reasons. First, I have my own firm, and no longer have anyone to impress. Secondly, the culture has changed, and expensive watches no longer seem to be "part of the uniform." At the same, I don't regret the gift. I have used it consistently over the past 20+ years, and hopefully will use it for 2-+ years more.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by GP813 »

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.
Last edited by GP813 on Tue Oct 19, 2021 2:34 pm, edited 5 times in total.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by CRC_Volunteer »

You have more than enough income to justify such a purchase. The bottom line, you must enjoy wearing it and not baby it. I purchased an Omega Seamaster Planet Ocean several years ago and it is my daily wear.

If you enjoy a nice watch - get it. It will become an item to pass onto your children or grandchildren.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by HomerJ »

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

Post by mikemagz11 »

If it will bring you happiness and worth to your life just buy it and don't think twice (it sounds like you can afford it).
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by CRC_Volunteer »

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. :)
Point #2 :: My grandsons are very much into watches. This has pleased me to no end.
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by namajones »

MAKsdad wrote: Tue Oct 19, 2021 2:06 pm
namajones wrote: Tue Oct 19, 2021 1:19 pm
MAKsdad wrote: Tue Oct 19, 2021 12:49 pm
namajones wrote: Tue Oct 19, 2021 12:43 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?
The less you want, the more you have.
There's no honor in self denial.
This is not about honor. It's about contentment and wellbeing. A material possession is unlikely to provide either, in my experience. Much more valuable is an attitude of appreciating what you have. The burden of possessions is something we do not talk enough about. Clearly the possession that the OP is contemplating is burdensome even before acquisition.
You're probably right. I just can't help but push back at a lot of the posts that I consider "virtue signaling". It's a bloodsport on here to see who can spend the least amount of money, which to me is just silly. I believe money is meant to make our lives better, not to be hoarded.
My feeling is that money makes our lives better to the degree that it gives us options to increase our sense of wellbeing, which has very little to do with material possessions, in my book. Money can buy back your time, for example, which is one of the only possessions worth coveting.

On the value of time, I love this line from the movie Before Sunrise:

"....all these people talking about how great technology is, and how it saves all this time. But what good is saved time if nobody uses it? If it just turns into more busy work? You never hear somebody say, 'With the time I've saved by using my word processor, I'm gonna go to a Zen monastery and hang out.'"
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by sailaway »

BMWrider1986 wrote: Tue Oct 19, 2021 2:39 pm
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. :)
Point #2 :: My grandsons are very much into watches. This has pleased me to no end.
If it is worn all the time, anyone who grows up around it, be that your own children or grandchildren, will likely associate it with your memory, which makes a much better heirloom than just because it gets passed down.
bhsince87
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by bhsince87 »

Quite simply, it can't be justified.

But that doesn't mean you shouldn't buy one.

Plenty of people will spend $5,000 plus on a vacation. They have nothing to show for it when it's over.

But that doesn't mean it wasn't worth it to them.
Time is what we want most, but what we use worst. William Penn
mikejuss
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by mikejuss »

bhough wrote: Tue Oct 19, 2021 12:36 pm6 million
Wow. Just wow. :greedy
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bubbly
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by bubbly »

On a somewhat unrelated note, my personal experience has been mechanical watches has some draw to, unsurprisingly, mechanical engineers. However, I have seen electrical engineers also drawn to them in a vintage type way. Having said that, it is fairly rare to see a younger adult wearing mechanical watches nowadays with the proliferation of smart watches. I wonder what the marketing strategy is going to be for the mechanical watch segment in the next few years, though Rolex claims demand has never been higher :confused
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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 »

Hobbies and luxuries by definition are not cost justifiable. But do we enjoy them - most definitely. Whether it is buying a watch, owning a boat or motorcycle, or even a high end automobile, we do this without skimping. My wife enjoys zipping around in the mountains in a Polaris Slingshot more than puttering around the neighborhood in a golf cart.
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DoubleComma
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by DoubleComma »

BMWrider1986 wrote: Tue Oct 19, 2021 2:39 pm
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. :)
Point #2 :: My grandsons are very much into watches. This has pleased me to no end.
Proves there is just no “rule” that can be followed. My dad has worn Rolex watches as long as I can recall. He has purposefully bought enough that each heir can inherit one…I have no interest in the watch other than as a keepsake of something that was important to my dad. Wonder if my kids will see the same sentimental value as it won’t be something they see me wear and quite honestly I doubt they realize their grandpa wears a Rolex.

I go back to my original thought. If something means something to the buyer, and they can easily afford it without impacting other priorities then go for it.
GT99
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by GT99 »

It's fascinating to me that, of all the pure splurge purchases out there, watches seem to be the one most asked about here (unless you include cars). Not judging because one person's watch is another's $1000 bottle of bourbon, another's diamond earrings, etc, etc, just find it interesting that watches come up so much.

For me personally, I look at expenses like this relative to what that money means in when I can retire. E.g. If I'm about 15 years from retirement, and I expect to spend $5000 per month in retirement, that's probably 2-3 months longer that I'll have to work if I spend the money rather than invest it. But that line of thinking probably only works if you don't love your job. :D
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Candor
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by Candor »

When I bought my $5000 watch I had considerably less in NW and salary than you. I was still able to retire early and meet all my financial goals. My $5000 watch is now worth >$10,000 but I usually wear a $200 Citizen EcoDrive. I still love the watch and have no regrets but now even though I have many times the NW that I had at the time of purchase I'm reluctant (too cheap) to pay the $800 again to have it serviced. I can buy a nice watch for that amount! :D
The fool, with all his other faults, has this also - he is always getting ready to live. - Seneca Epistles < c. 65AD
hidradenitis
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by hidradenitis »

This purchase would be a luxury. If it wouldn't impact your retirement projection, I don't think it matters what you choose to spend $5,000 on.

I appreciate good watches for their craftsmanship, history, simplicity, reliability, looks, and so forth. Unlike other expensive hobbies (art, guns, boats, rare books), this hobby can be enjoyed anytime, anywhere as it is physically attached to you. So I get it.

I try to strike a balance between my interest in watches and my desire to be frugal. I have learned to appreciate microbrands (Vaer makes excellent watches, both quartz and automatic). Sourcing and building (or at least commissioning) one's own mods can be a great way to enjoy the hobby as well. My custom SKX013 with a 12 hour bezel is exactly as I want it and is more useful when traveling across time zones than even a smartwatch.
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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 »

BMWrider1986 wrote: Tue Oct 19, 2021 2:39 pm
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. :)
Point #2 :: My grandsons are very much into watches. This has pleased me to no end.
I'm guessing you are older (since you have grandchildren), and the OP appears to be younger.

The OP probably doesn't even have grandchildren yet.

In 2075, his grandchildren will likely have far more interesting things to enjoy than some old watch that doesn't even keep time.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
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 »

Impatience wrote: Tue Oct 19, 2021 10:09 am You should have some kind of a budget set aside for “hobbies” and then just compare whichever purchase you’re considering against your annual hobby budget.
I vote for this^
If your $1000 per month blackjack account is flush, buy it. It's your money though, even if it didn't come out of your mad money account.
On the other hand, money is fungible...
In 100 years from now it won't matter.
ADower
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by ADower »

As long as you can pay cash for it then I say go for it!
wrongfunds
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by wrongfunds »

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

Post by manuvns »

the day you make 5k in a day or week ,just make sure the watch will hold it's value well .
Thanks!
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TomatoTomahto
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Re: At what net worth, income, etc. can I justify purchasing a watch for $5k?

Post by TomatoTomahto »

MAKsdad wrote: Tue Oct 19, 2021 12:25 pm I think frugality is a combat sport for some people on this forum.
True dat.
I get the FI part but not the RE part of FIRE.
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