When is one financially ready?

[malnik]

Better take care of the family first. If you invest your $10,000 in kids' college fund at 5% interest per year, it will be worth $21,000 in 15 years. You won't get that with a SS Daytona. Buying a Rolex is never financially responsible. It's an enjoyment. You had disposable income when you were 25 and single. Now it's a different ball game. Enjoy your Sub!

[Tools]

Everybody should have a hobby !!!

Some hobbies are more expensive than others.

[Loevhagen]

Originally Posted by Tools

Everybody should have a hobby !!!

Some hobbies are more expensive than others.

Best answer in this thread. Hobbies are not rational. Hobbies are not measured by money. Hobbies bring joy to life.

Having said that, hobbies should always be financed without any debt or uncertainties - or else it isn't a fun hobby, now is it?

[Iloreyix]

It's more about justification, not financial readiness.
These watches will still be worth thousands in 40 years.

Most of the cars we drive will be worth absolutely nothing.

I bought a Rolex and drive a Honda.
I have more need to justify an upgraded car than a luxury watch.

I bet your wife would buy that.
Mine did

[beshannon]

Originally Posted by Zippo

how does one justify (to my wife ) making such an expensive purchase when there is always something more important to put the money towards?

You just answered your own question

[4lx]

Originally Posted by cataby

Financing a watch is pure stupid.

For those of normal means who can't afford to buy outright, financing at 0% isn't a bad idea. For example one could save up for a year, 2 years or whatever, if the price goes up in that time they have literally wasted money as they will have to pay more than they would have by financing.

This is what i did with my Sub, i have the money to buy outright but why take money away from an interest bearing account to pay for something when it can be bought at no interest, if you can manage the monthly payments without it affecting your lifestyle and responsibilities then there is no issue. I could have saved up but by financing i bought the watch before the price increase in the UK, saved myself the extra 10% while the money i could have used to buy outright is still making me interest.

Not so stupid

[Watchgeek5000]

Usually when you accept the 0% interest you are not getting any other type of discount on the watch.

[beshannon]

Originally Posted by Iloreyix

These watches will still be worth thousands in 40 years.

Because your money will be worth far less.

Think about it

[Spartacus]

Op, take two classes: Accounting and Finance. Then, make your own decision.

Most posts in this thread are useless, broad brushed, and should be considered bar stool chatter.

[Jake B]

I buy only if I have spare cash to pay up front and only if the purchase impacts/canges nothing else for my family or myself. I mean, don't buy a luxury watch unless all else is covered and then some.

[uansari1]

Originally Posted by Zippo

Hey everyone,

I am the humble owner of a Hulk that I bought 5 years ago when I was 25. At that time I had very little financial responsibilities. Much has changed since then (married, bought a house, had a baby etc.) I absolutely love my Hulk but I would definitely like to expand my collection in the future. So here is my question, how does one justify (to my wife ) making such an expensive purchase when there is always something more important to put the money towards?

I have noticed amongst this forum that many people have the opinion that one should not spend on a watch until all other obligations are met, ie. mortgage free, education for the kids, retirement savings etc.

Does one have to be a multimillionaire with no debt to justify owning multiple 10k+ watches?

Just looking for some opinions. Thanks

I don't think you have to be totally debt free. My view on it scales up as financial obligations increase (i.e. wife, kids, mortgage, deficient retirement account)...but if those are all healthy, and you have a solid multiple of the value of the watch in liquid savings (for example, I'd feel ok spending $15k on a watch if I had at least $75k liquid savings in the bank).

I typically go with a 5X multiple, so I didn't spend $4k on my 114270 until I hit that multiple...and then the Sub came when I reached a 5X multiple again for its cost. Bear in mind that this is after maxing out 401k, IRA, and establishing vacation and emergency funds. If I had a fairly new mortgage and/or private school tuition for 2 kids, I'd ratchet up that multiple accordingly.

[Racerdj]

I will try to sum it up. When you can purchase the watch with cash and it will not affect in anyway your lifestyle, you might be ready. It will be enjoyable this way and often the chase is better than the catch.

[sahcivan]

I was always taught, don't buy 1 unless you can afford two.

It works

[Randy63]

Originally Posted by Spartacus

Op, take two classes: Accounting and Finance. Then, make your own decision.

Most posts in this thread are useless, broad brushed, and should be considered bar stool chatter.

This says it all.

Randy

[mjclark32]

I bought my 16610 when I probably shouldn't have, from a financial perspective. About six years ago, was about a year out of college, living in an apartment, just bought my wife her engagement ring and wanted something myself too!
Now we're on our second home, which should be our forever home, and everything is fine.
My advice; go for it! Life will figure itself out

[Etschell]

Originally Posted by Tools

Everybody should have a hobby !!!

Some hobbies are more expensive than others.

this hobby is better than boats and cars. some have all three. but i know my rolex will hold value, if i get the right price, a hell of a lot better than a boat or sports car.

[RoleyPolly]

Save money and invest it so you can retire young and most importantly live a frugal lifestyle. Forget Rolex because it is not frugal go for a timex. Actually, timex is a waste of money so go for an outdoor solar clock instead so you can pass it for generations to come.

[malnik]

Originally Posted by Etschell

this hobby is better than boats and cars. some have all three. but i know my rolex will hold value, if i get the right price, a hell of a lot better than a boat or sports car.

boats and cars can do a lot more than a Rolex can.

[Sweetswisssteel]

It's an emotional decision to buy a luxury item. Your ready when you realise you can't live without it. 😁 You've got ONE life, enjoy

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[drgoro]

First part I agree with to some degree. The rest 'Not sure if serious'.

Originally Posted by RoleyPolly

Save money and invest it so you can retire young and most importantly live a frugal lifestyle. Forget Rolex because it is not frugal go for a timex. Actually, timex is a waste of money so go for an outdoor solar clock instead so you can pass it for generations to come.

[HogwldFLTR]

Frankly, when ever one if ready and able to pay the full cost of owning the watch. Don't make commitments you can't keep. Doesn't matter if it is cash out of pocket or financed. The total cost and commitment that you can support is all that matters.

[m j b]

Originally Posted by Juantxo

Shhhh, this is a secret, please don't repeat it. But you really only need one watch. Truly.

Ban him!




To OP:

Only you know what you can comfortably spend on a trinket. As a guideline, I'd suggest that you should be able to pay cash for it without sacrificing an investment or other purchase (like updating your car, fixing the roof, etc.).

It also depends on how you handle your family finances - is it all your money together, or do you have "your" play money and "her" play money?

[Congdon]

I'm not sure I understand where a mortgage fits in with this, providing the monthly payment is being met. If I am paying 3% to use someone else's money to buy my home and my money (invested wisely) is making 8%, why would I want to be mortgage free?

[cferrel]

When your stock dividend checks can buy the toy. If it was not for dividend checks I would feel guilty lol. I pay cash but thats me. I really hate writing checks to loans.

[Sweetswisssteel]

Haha you guys .... here's a tip..buy the watch whenever you darn well feel like it..lol..how many forums are there for Honda civic owners wondering when they are financially ready to buy a car...haha a car is more expensive in most cases, costs more to upkeep and depreciation is more than a Rolex..lol

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[Chadridv]

I'll be honest my collection of watches likely reflects that of a much wealthier person. I'm not saying I made bad decisions or couldn't necessarily afford my watches, but certainly saving money or making smart investments would be safer for me than buying watches.

However it's all about priorities. We all have em and we all our toy budgets. As far as justification goes, I plead my case from a couple different angles. First, it's simple, I think I've made some pretty good deals and trades in the watch game. If I had to sell my entire collection today I don't think I'd lose that much. If I had to sell it in ten years I don't think I'd lose anything. Does that make it an investment? No. but it certainly makes it a hell of a lot better than buying a sports car or a speed boat.

Second, I don't drink, smoke, smoke cigars, go out to bars, attend sporting events regularly or frequent fancy restaurants. Of course I have hobbies some of which are free or cheap, and others that cost a little, but for the most part watch collecting is my idea of fun.

There's actually 100 other ways to justify it but I could go on all day.

[cferrel]

You probably spend the equivalent to someone doing the things most do so its not a big deal. Drinking cost some people a lot of money over 10 years.

Originally Posted by Chadridv

I'll be honest my collection of watches likely reflects that of a much wealthier person. I'm not saying I made bad decisions or couldn't necessarily afford my watches, but certainly saving money or making smart investments would be safer for me than buying watches.

However it's all about priorities. We all have em and we all our toy budgets. As far as justification goes, I plead my case from a couple different angles. First, it's simple, I think I've made some pretty good deals and trades in the watch game. If I had to sell my entire collection today I don't think I'd lose that much. If I had to sell it in ten years I don't think I'd lose anything. Does that make it an investment? No. but it certainly makes it a hell of a lot better than buying a sports car or a speed boat.

Second, I don't drink, smoke, smoke cigars, go out to bars, attend sporting events regularly or frequent fancy restaurants. Of course I have hobbies some of which are free or cheap, and others that cost a little, but for the most part watch collecting is my idea of fun.

There's actually 100 other ways to justify it but I could go on all day.

[Livermoron]

I do mortgages for a living. You'd be surprised at how many people who make a TON of money have little assets and or are in debt up to their eyeballs. And some people who appear to be making it are one misstep away from financial disaster and everything they have is leased or rented. So buy your watch if it's not going to hurt you

[s14roller]

I think you just know. There's not a detailed analysis to be done to know directionally if you can afford a luxury item with ease without derailing other financial commitments...imo.

[cferrel]

Originally Posted by Livermoron

I do mortgages for a living. You'd be surprised at how many people who make a TON of money have little assets and or are in debt up to their eyeballs. And some people who appear to be making it are one misstep away from financial disaster and everything they have is leased or rented. So buy your watch if it's not going to hurt you

I drive a Jeep and dress in jeans and T shirt if im not working. I did see a lot more Landrovers at the grocery store this year.

I bet going over peoples numbers is quite entertaining though.