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

[superdog]

I have been thinking about this a lot the last few days. We often times see posters asking about trades and financing the cost of a Rolex. We also see people giving advice that others should "save up" and buy the watch that is perfect to them.

I am curious about what "being able to afford it means to you".

For me, I am 37 years old. I own two businesses and have had to very good years. I am, of course, not sure how this year will turn up. I have a girlfriend that I will probably marry and she will want kids.

Right now, I could easily "afford" my grail of 116509 which sells for about 30K. I own most of my condo, and my expenses are pretty low. I have a very healthy savings account and a decent 401K from a previous job.

However, while I could pay for this watch a few times over, I really don't think I can come close to "affording" it. In fact, spending 8k on my Sub C LN seems like spending a lot of money on a watch. I love it immensely but I paid for it outright and it was a easy buy.

All of this said, I wonder what you guys think constitutes reasonably spending so much money on a watch.

I realize that there a lot of different people with different spending abilities here. I would assume that I am somewhere in the middle.

What kind of money do YOU think you should have in order to spend 8k on a watch and what kind of money do you think YOU should have before spending 30K+ on a watch?

I greatly appreciate your answers.

[RRGHOST1]

You have two SubC's now and it all depends on lifes priorities really.Having a WG Daytona is nice but is it 30k nicer than your Subs,i dont think so, but there are others here who will say it is. Only you can answer that.

[kilyung]

I don't think there's a threshold for buying $30k+ watches (which I've done a few times). I think it's relative and not a question of how much you make. After paying all the bills and putting away money, only then do I put any extra into my watch fund and only with the wife's ok. It's all about priorities. However, you don't have to spend $30k+ to be happy in this hobby.

[DDG]

If you're gonna feel guilty for buying it, then, in that respect you can't afford it.

[bigwatchman]

I am 34 with three kids. I probably shouldn't be wearing one, but I have lusted after one for about 13 years. I am self employed and my wife has a great job. I had a good year in 2010 and rewarded myself with a pre-worn DJ. A year before, I rewarded myself on another career milestone with a new Omega Seamaster. Last fall I decided to sell both and one more and trade up to a Submariner ND. Could I afford one new. No. I have so much tied up in several watches today and that is all I have to play with. I am now content with my Sub and a few Luminox.

Anyhow, we have a roof over our heads, food in our bellies, decent retirement and some college savings. I could probably do better at saving but right now, a Rolex is gaining more than what I could be making at the bank. Should I have one, probably not. Am I glad I have one, absolutely. Life is short. Enjoy it to a certain degree because when its over, its too late to do anything about those things you have put off.

[dcash0615]

My personal opinion is that you can afford it if it is paid for in full with funds that are not needed for other means. Luxury items should never be purchased if you can't afford to pay for them in full.

[superdog]

thanks for these answer guys. its not really about me being able to afford it. i really could not justify it.

i am just wondering what people think and how they spend their money. i see a lot of guys on here that simply "have to have" a rolex. they save and save and save to get it.

if i had to save for months because i was worried about paying my rent, i would rather spend the money on building my nest egg. i don't get the idea of financing or stretching to afford this type of luxury item.

i think it is that a luxury item. while going on vacation, i could afford it, but could not justify staying at the ritz. if i had a fortune then i would not even think about it.

i suppose the start of this thread was simply to gauge what other people do and what is important to them.

[superdog]

Originally Posted by bigwatchman

I am 34 with three kids. I probably shouldn't be wearing one, but I have lusted after one for about 13 years. I am self employed and my wife has a great job. I had a good year in 2010 and rewarded myself with a pre-worn DJ. A year before, I rewarded myself on another career milestone with a new Omega Seamaster. Last fall I decided to sell both and one more and trade up to a Submariner ND. Could I afford one new. No. I have so much tied up in several watches today and that is all I have to play with. I am now content with my Sub and a few Luminox.

Anyhow, we have a roof over our heads, food in our bellies, decent retirement and some college savings. I could probably do better at saving but right now, a Rolex is gaining more than what I could be making at the bank. Should I have one, probably not. Am I glad I have one, absolutely. Life is short. Enjoy it to a certain degree because when its over, its too late to do anything about those things you have put off.

this type of spending i absolutely agree with. we must reward ourselves for hard work. but at the same time, you were reasonable with what you did and you are comfortable in the purchase. i say

[GradyPhilpott]

If you have enough money to pay for the watch and have enough money left to eat until the next payday, you can afford it.

Whether or not it's advisable to do so, only you can answer.

[azguy]

To me afford means: you can't see a financial crunch that could require selling it

[btrue]

I sold one of my bicycles to buy my GMT and I tried not to think about the $7900 price tag for fear that I would not follow through. While I could justify the 100k + in bicycle hanging my garage and basement, spending nearly $8000 for a watch seemed proposterous to me. So I tried not to think about the $ and instead think about the fact that it cost one bicycle and for some silly reason that helped rationalize it.

I asked my wife before I sold the bike if I could take the money and buy a Rolex with it and she ok'ed it. Last night before we went to bed I asked under what circumstances she would be ok with me buying a $34,000 watch, and she said we would have to be billionaires before she could see that as justifiable. I guess I have a lot of saving to do!

[DiamondJack]

I really think affordability is a completely relative concept and depends greatly on the value placed on the item by the purchaser.

Now clearly luxury items will in most cases with "normal" people always be prioritised behind everyday life expenses and some form of emergency fund (usually six months income).

It then comes down to the actual value individuals place on their luxury items and also their own upbringing and how guilty they get when spending money on "unnecessary" items.

We will all behave differently in this respect and whilst some people will feel they can afford another watch even if it takes all their immediate savings, some will feel they can't even though they may have substantial "sensible" investments such as real estate, stocks, bonds and pensions etc.

I have a client who is worth perhaps £100 m + who at the age of 65 has just treated himself to a solid gold Patek and feels a bit guilty about the frivilous expense.......

[rr-nyc]

People have different ways of paying for luxury goods so there is no "right" answer when it comes to being able to afford it - only wrong ones.

If you aren't going to be able to pay your bills next month because you bought a watch, thats a wrong answer. Other than that, its purely subjective whether you can afford something or not.

[le_baroudeur]

You know what? I am a student, earning 750 euros per month, with an old 260.000km peugeot 106: i bought a 16610lv with my savings, and am very happy not to have bought a stupid car with that money.

I do not plan to follow consumerism, so my watch is my only pricey object. I haven't got a television, a great smartphone or a big house: (do not need them) the problem is not what you earn, it is what your expenses are! Yes, even for a wealthy man, a rolex is expensive, but hey, it's a great watch, and is more durable and reasonnable than a medium car. Wear it in good health!

[Lisa]

Agree with everyone who feels it's a totally subjective thing... but since you did ask what it means to us, I'd say that when the bills are paid, current savings goals met and debts paid off, then I can afford it.

[pwnageinc]

Affording it to me means, if you purchase something will you have to change your lifestyle after the purchase. So if buying an expensive watch is something you'd enjoy and you can live the same life after purchase you can afford it. Now if you are putting yourself in serious debt by doing this you may want to reconsider.

[Mickey®]

NO guilt...and I can pay for it or pay it off in a couple months...
I used someone's no interest offer once...very nice!

[opaline460]

If that 30k+ watch is less than 12% of your income, then you can afford it.

[JC316]

Originally Posted by btrue

I sold one of my bicycles to buy my GMT and I tried not to think about the $7900 price tag for fear that I would not follow through. While I could justify the 100k + in bicycle hanging my garage and basement, spending nearly $8000 for a watch seemed proposterous to me.

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!

[Dan2010]

I cut coupons.................lol

[F&Iguy]

Originally Posted by Lisa

Agree with everyone who feels it's a totally subjective thing... but since you did ask what it means to us, I'd say that when the bills are paid, current savings goals met and debts paid off, then I can afford it.

X2 and I'll add pay cash or a short loan at 0%

[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.

As soon as members agreed and subscribed to that way of thinking other members started totting up other members' collections and multiplying that amount by 50 and started calling out the millionaires.

Then it turns to poop and its been a moot point ever since.

As an aside I once went to purchase a very nice turntable from an avid audiophile who had upgraded to an even nicer one.

He was a lowly council worker, dustbin/trash collection, lived in a small rented flat with about £100 worth of furnishing.

He also had almost £200,000 worth of hi-fi.

Balanced? Hardly.

He could afford it though, no wife, car, kids or ambitions other than owning a really nice sounding system. It would have sounded better in a purpose built room in a larger house but that was beyond his means.

[Gagebuilder]

It's about rate of return. I believe enjoyment is a ROR.

If you are able, and believe you will get the ROR of enjoyment a $30k watch could bring, sure.

[superdog]

Originally Posted by opaline460

If that 30k+ watch is less than 12% of your income, then you can afford it.

i think this makes a ton of sense!!!

[FeelingTheBlues]

Originally Posted by Lisa

Agree with everyone who feels it's a totally subjective thing... but since you did ask what it means to us, I'd say that when the bills are paid, current savings goals met and debts paid off, then I can afford it.

I agree with that. I'd also like to add that you need to be able to pay it all with money you currently have and don't mind spending on luxury goods which you will never need. I love watches a lot and I own a couple of them but I never needed one, I just wanted them. The fact that you can't justify buying it doesn't mean you don't have to, sometimes you have to spoil yourself with a little gift!

[superdog]

Originally Posted by Lisa

Agree with everyone who feels it's a totally subjective thing... but since you did ask what it means to us, I'd say that when the bills are paid, current savings goals met and debts paid off, then I can afford it.

"debts paid off" completely agree.

that can mean a lot to different people, but for me, it means paying off my condo completely and not even having a car payment.

i agree with that completely. until then...i will continue to have a love affair with my LN and lust after my grail.

[blackmsport]

depends on your asset : liability ratio... best position is 100:0 with good cash flow... for example, you have 1 mil worth of asset and $0 liability... then you can buy things you like when you have spare cash

at the moment in my life... I am at 98:2

[dmauldin]

Here's how I measured it...

Wife complains when I mention my desire to purchase a Rolex = I can't afford it.

Wife only rolls her eyes... = I can afford it now!

[wesdaniel]

Originally Posted by pwnageinc

Affording it to me means, if you purchase something will you have to change your lifestyle after the purchase. So if buying an expensive watch is something you'd enjoy and you can live the same life after purchase you can afford it. Now if you are putting yourself in serious debt by doing this you may want to reconsider.

I agree with this.

[wesdaniel]

Originally Posted by btrue

I sold one of my bicycles to buy my GMT and I tried not to think about the $7900 price tag for fear that I would not follow through. While I could justify the 100k + in bicycle hanging my garage and basement, spending nearly $8000 for a watch seemed proposterous to me. So I tried not to think about the $ and instead think about the fact that it cost one bicycle and for some silly reason that helped rationalize it.

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!