What does "being able to afford it" mean to you?

[cedargrove]

For me both of the following have to be satisfied:

1) have the money, comfortably.

2) will not question the purchase, absolutely no regrets

[Lisa]

Also - if I really want a big-ticket item, building up the money for it becomes my complete focus (obsession? Nah, not quite...). I cut back on frivolous/unnecessary spending (passing up the prime rib at the butcher and getting ground beef instead; eating more meals at home rather than dining out, deciding that cute pair of shoes can wait...) There's something very satisfying about building up the bank account with a specific purchase in mind, and it's amazing how quickly a few dollars saved here and there will add up. I did this for my classic car, and after paying the cash for it the bank account level was basically the same as it was before I planned to buy the car. So it didn't seem to put a dent in our finances at all.

It's funny how "wants" avail themselves when there's extra money laying around. When we're low on funds, my "wants" go away for a while. When funds are higher than usual, amazing how fast my husband or I realize that we have to have something.

[eman1200]

let's not confuse affordability (the 'could I') with perceived value (the 'would I'). someone might be able to afford a $10k mountain bike but never in a million years would I spend that much on a bicycle. I wouldn't have to spend 30 seconds justifying a $14k harley purchase, but I'm in-between on justifying spending $9k on a watch (which is why I'm spending extra time at the poker tables....to try to pad my watch fund hahahah!).
but...if I purchased any of the above today and lost my job tomorrow, my ability to meet my financial obligations and responsibilities for the foreseeable future would be the determining factor on whether that purchase was affordable for me.

[superdog]

Originally Posted by wesdaniel

It's funny you say this. The most I've ever spent on a bicycle was $3,500 and it took some rationalizing. I have three road bikes and one mountain bike and, between them, I spent a total of about $9K. I'm obviously not as avid of a cyclist as you, but I rode about 8K miles last year, so I'm pretty active.

My watches, on the other hand (one for $4,500 and one for $8,350), I didn't have to rationalize. I saw the value in them without any question.

Just depends on where are passions are as to what we can afford.

By the way, I'd love to know what you ride!

i used to ride a ton and now just a little. but id also love to know what he rides

[grrr925]

new to the forum, this is my first post (other than an intro )
Im looking at getting my first rolex, more specifically a 14060M "Z" 2 line. i been doing lots of homework over the weeks and all i can say is this thread is HORRIBLY convincing. and since i find myself carrying no debt, i think ill be looking for this watch now.

[sond86]

I waited until I had more than 10X the purchase price saved before buying my first sub.

I see it as yes a lot of dough spent, BUT it hopefully always has value and if purchased for a decent price it can be sold if needed at a future time.

[chicfarmer1]

Originally Posted by Lisa

Also - if I really want a big-ticket item, building up the money for it becomes my complete focus (obsession? Nah, not quite...). I cut back on frivolous/unnecessary spending (passing up the prime rib at the butcher and getting ground beef instead; eating more meals at home rather than dining out, deciding that cute pair of shoes can wait...) There's something very satisfying about building up the bank account with a specific purchase in mind, and it's amazing how quickly a few dollars saved here and there will add up.

It's funny how "wants" avail themselves when there's extra money laying around. When we're low on funds, my "wants" go away for a while.

Agree with both points. I think it's the symbolic thing of making a visible effort in order to get the goodie. It may not be technically necessary, but it makes the focus concrete and real. And fun, actually.

And re the second point, I am someone used to not buying (from earlier, poorer days) as well as feeling free to buy, so it's easy for me to return to that mode. I recognize "gravy" for what it is.

[rolexgiants]

It's sorta like.... If u know exactly how much money you have...... Then..... You obviously need a lot more.... Lol

[Lion]

We all have different priorities and ideas about what is and isn't important in our lives. I was raised to do without until you pay with cash. So that is what I do except obviously when it comes to items such as cars. Now I do not own an expensive car(2005 Honda Civic)and it is payed for and has been for 3 years. I currently have no debt but by choice I do not live an extravagant life style either. I also look at life as wants and needs with needs(food, clothing and shelter)being the top priority. Wants are just that...things not needed. The other aspect which is important in my life is having happiness through peace and serenity. And to me that is important!!!

[liuk3]

Originally Posted by Welshwatchman

It's hard to nail down the "being able to afford it" statement to a simple meaning.

It's a bit too subjective.

Back in the day and in a forum far far away (and I was just a whippersnapper) the rule of thumb was put forward that if your watch collection represented 2-3% of your total net worth you were nicely balanced.

I like the methodology in using a rule of thumb of % of net asset value rather than % of annual income. Obviously, each person has to make their own personal choice what that appropriate or applicable % of net worth should be.

Annual income doesn't take into account your overhead expenses, whereas net asset value or net worth takes into account how much money (value) you possess (or saved) less your debt obligations outstanding.

IMOH, I would likely be on the most conservative end regarding when appropriate to make such luxurious purchases. I've wanted a rolex badly since I was in high school, but I waited until I was 40 to purchase my first one.

Edit: For added perspective however, I have spent a boatload of money on Harleys and dive equipment/training which could easily have bought a bunch of rolexes instead. So, it really is a matter of priorities and personal value/utility derived from particular purchases.

[Spunga]

"being able to afford it" simply means .....

I bought it........because I can!!

[Lisa]

Originally Posted by chicfarmer1

Agree with both points. I think it's the symbolic thing of making a visible effort in order to get the goodie. It may not be technically necessary, but it makes the focus concrete and real. And fun, actually.

And re the second point, I am someone used to not buying (from earlier, poorer days) as well as feeling free to buy, so it's easy for me to return to that mode. I recognize "gravy" for what it is.

Yes. And did you grow up with Depression-era parents, too? I think that did a lot to form my attitudes about money and what it can buy.

From 1996 to 2003, when my husband was in school/residency and we lived on a meager income, our goal was to live on $1200 a month and for him to get through school debt free. This was about 2/3 less than we were accustomed to having when we both had incomes. And this included a modest house payment, and later, a baby. Most months, we succeeded. And you know, I can't remember "wanting" for anything. We took lots of long walks and I worked in the garden for entertainment. I shopped at thrift stores. We ate out rarely, and then only if we had a "two for one" coupon. Once, Garth Brooks was performing at an amphitheater close to our home. We walked up to the park and sat in the parking lot and listened. It was a blast! This was a very happy time in our lives, and we truly couldn't afford any luxuries.

[chicfarmer1]

Originally Posted by Lisa

Yes. And did you grow up with Depression-era parents, too? I think that did a lot to form my attitudes about money and what it can buy.



And you know, I can't remember "wanting" for anything. We took lots of long walks and I worked in the garden for entertainment.

Exactly. Yes, my people were Depression-shaped, and even those relatives who became wealthy eventually stayed coupon clippers their whole lives.

When we were young and living the grad school lifestyle, our entertainment was finding an air-conditioned mall and walking it--glad for a place to cool down, or driving the countryside listening to fantastic roots music on the radio (in North Carolina). That's what we could afford. And that was the happiest time in our lives (before we knew what having a child could mean) and stays so in memory.

[Dan2010]

Do you have the cash in the bank after all your bills are paid? Will your bills be paid for the forseeable future? If so, you can afford it.

Worrying about if you can pay for a Rolex because of some doomsday or worst case scenario isn't in my line of thinking. If there IS a worst case scenario, you can SELL the Rolex and get most if not all your money back. I grew up poor and I do well now. I know what it's like on both ends of the economic spectrum.

[jamesbondOO7]

I would have to feel really wealthy to spend 30k on a watch. For me 15k would be the limit. For 30k, I'd rather buy 2.

[masterserg]

Buy cash (or pay off card immediately), do not neglect other more important items (food, healthcare, education, bills, mortgage, clothing, entertainment, etc.) and do not feel added pressure due to the expense. Avoid impact on savings.

[conrail]

Originally Posted by masterserg

Buy cash (or pay off card immediately), do not neglect other more important items (food, healthcare, education, bills, mortgage, clothing, entertainment, etc.) and do not feel added pressure due to the expense. Avoid impact on savings.

I think that objective definition should just about work for anyone. That is spot-on to how I feel.

(especially if you use the credit card to get points/miles but can pay it off that billing cycle.)

[xjeeunitx]

I think luxury watches are just like cash. As long as you buy them pre-owned, you will never lose a large amount of money. You might even make some in the process. So with that said, if someone can pay for a watch full price with money left in the bank, you're good to go. Also, that means you have a roof over your head, food in the fridge, clothes to wear, car to drive, etc.

[btrue]

Originally Posted by JC316

I'm not sure if I'm reading this right.... You have a 100k + bicycle hanging in your garage? Or you have several amounting to 100K + in your garage? Either way! Very impressive. I take it that the wheels in your propic is what you have on your bike? Zipp!

100k spread out over more than a dozen bikes. No solid gold Serotta in my garage :). Of course, Zipp wheels on, almost, every bike.

[The Joker]

Originally Posted by Lisa

Yes. And did you grow up with Depression-era parents, too? I think that did a lot to form my attitudes about money and what it can buy.

From 1996 to 2003, when my husband was in school/residency and we lived on a meager income, our goal was to live on $1200 a month and for him to get through school debt free. This was about 2/3 less than we were accustomed to having when we both had incomes. And this included a modest house payment, and later, a baby. Most months, we succeeded. And you know, I can't remember "wanting" for anything. We took lots of long walks and I worked in the garden for entertainment. I shopped at thrift stores. We ate out rarely, and then only if we had a "two for one" coupon. Once, Garth Brooks was performing at an amphitheater close to our home. We walked up to the park and sat in the parking lot and listened. It was a blast! This was a very happy time in our lives, and we truly couldn't afford any luxuries.

They don't make women like Lisa anymore.

[mboverst]

My rule of thumb on luxury items. Must be cash and even if something financially tragic happened, I would not have to liquidate it for a long time due to ample savings.