Income versus Watch Collection Value - Looking for Sound Guidence

[mcorliss]

Affordability is a very subjective thing based on what we value the most. However, Let me say that I bought my Ex well over $100K in diamond jewelry and she walked away with all of it during my divorce. I walked away with a $3,000 watch. You do the math!

As long as you aren't going into debt to splurge to on it, have paid all your normal monthly bills, provide well for your kids, and continue to save for retirement, do what makes YOU happy! If you have to reduce discretionary expenses in other areas to reallocate funds, all the better.

As another person stated, if you can save for it over time, it will certainly lessen your guilt, add to the enjoyment of getting it, and be a nice reward for achieving a goal.

I am facing a similar question (no spouse!) having acquired my whole collection since January, really wanting to add a Blue DJ II, and being liquid to 40x the purchase price. It is just my own catholic guilt holding me back, not my liquidity. My own solution is to just sell whatever watch I wear the least to finance the purchase of the new one since I have a strict 6 watch rule driven by the size of my watch box.

Good luck!

[unclesallie]

Don't do it !

Right. That's what I thought, an advanced
stage of Watch Fever, a progressive, and invariably
fatal disease.

[FNFZ4]

What can you do if you are a watch fanatic? Some people like cars, some like watches, others gold. Unless she shares your passion, she will never understand any justification.

As long as you are providing well for your family and you wont be late on house payments, cars, bills and that you have a 1 year living expense reserved that wont be touched then i say yea go for it. I always think about the 1 year reserve rule. Meaning if both of you will loose your job you have 1 year living expense saved in the bank.

[wantonebad]

Having one year living expenses may be a little excessive, most financial advisers I've heard say 3 months, maybe 6 months, but to have one year liquid when it could be invested might not be the best way to handle your money, seek a pro to advise you. JMHO

That said if you want to know the prudent thing to do, unless you are debt free and have fully funded your retirement, then don't collect watches. Buy one maybe two to wear and they should be practical and easy to resell.

Watch collecting is impractical all the way around, sound guidance would be don't do it. not unless you have money to burn.

[East Bay Rider]

I really don't understand the question. If you have the money to buy the watch comfortably and your wife is comfortable with the $ amount with relation to your savings, debt, job security etc, then go ahead. If she sees that amount as uncomfortable and has objections then maybe you'll need to work on that a bit more.
As far as cost related to income - well I don't see how they're related. That's what saving is for. Many people own valuable things that are 'below their station' by saving for them, selling other things, working more, lifestyle changes etc. It all depends on what's valuable to you. Be creative and make it happen.

[SLRdude]

Given my income, I technically cannot afford any of the watches that I have.

With that said, I owe zero on credit card and I drive a Smart car. Other than the smart car payment, utilities and car insurance, the only other bill I have is my mortgage.

Every year for the past 6 or so I rewarded myself a watch at bonus time, which also happens to fall around my birthday. Never financed it, always paid cash.

Since I tend to buy gently used and from forums such as this one, I haven't really lost any money on any of my watches and like somebody before me said, the watches now act like a secondary savings account should something bad happen. (knock on wood)

Now on to the 25k watch... I thought about selling all mine and getting a 25k watch but I think I would be miserable since I just cannot see myself as a one watch dude.

[Zed Homme]

Depends on your other obligations. Mortgage, kids in school, family illness. There factors and more are as important to your topic as actual income.

[figbo]

No mortgage,no kids,no credit card payments,just the water and electric bill with a sucky income...,what are we talking about??

[webprint]

Something that might be missing is: Which Watch?....No?

[Tri-Tip]

I don't think you can compare the cost of the watch with annual income unless you plan on buying one each year. I'd compare the cost to "disposable assets". Do you have a roof over your head, reliable car(s), emergency fund, retirement fund, etc. and still have enough cash left over...then it's time to spend that amount on a watch.

I bought my Sub-C when I came into a cash windfall, and spent less than 10% on the watch.

[AK797]

Originally Posted by caryyee

This.

Anyone can afford a $25k watch on any amount of income, you just need a savings plan. Whether it be $50 a week, or $500 a week you are able to save into you 'watch' fund, eventually you will get there. It might be 10 years on $50 a week savings, or 1 year if you're able to save $500 a week into the fund.
Just make sure it's you discretionary funds you are spending from. Some save for a fancy car, or an overseas trip. If your goal is for a gold Rolex, then go for it, it can be done on any budget, eventually you will get there.

I agree its all about saving up and having disposable income. If someone earns 200K a year but has a wife, kids, large mortgage, car payments, private schools, college fund, family holidays etc to pay then his annual personal watch fund might be less than a single guy earning 50K or even 30K.

[AK797]

Many religions ask for 10% of your income so if you can persuade your wife Rolex is your religion, just like Louis Vuitton is hers, then you might even get 20%!

[FNFZ4]

Originally Posted by wantonebad

Having one year living expenses may be a little excessive, most financial advisers I've heard say 3 months, maybe 6 months, but to have one year liquid when it could be invested might not be the best way to handle your money, seek a pro to advise you. JMHO

That said if you want to know the prudent thing to do, unless you are debt free and have fully funded your retirement, then don't collect watches. Buy one maybe two to wear and they should be practical and easy to resell.

Watch collecting is impractical all the way around, sound guidance would be don't do it. not unless you have money to burn.

I really dont believe the financial advisers. The 3 month rule is obsolete with the current employment conditions. But its all a matter of opinion and there are different situations. I guess I am lucky to have 1 year living expenses saved up and able to maintain an investment to my business

[JP Chestnut]

Originally Posted by FNFZ4

I really dont believe the financial advisers. The 3 month rule is obsolete with the current employment conditions.

I agree with you. One year may be excessive, but 3 months seems inadequate given what I see around me.

[shnxx]

Interesting thread!

I am fortunate enough to have a few years worth of spending money and little debt to worry about so spending 30 on watch was definitely not going to cause hardship.
But when I was financially less stable (depended on someone giving me a paycheck) although I liked watches, I never even considered purchasing a watch above g shock level.

[FrankNYC]

I don't use income, but net-worth. For me, a watch should not exceed 1% of my net worth