By the way, nobody, but thieves who will mug you and/or cut your wrist off, notices watches. Get it because you like it, not because you think it will make you look cool.
I make six figures and bristle at the thought of spending even $30K on a car. My purchased off-lease Camry gets me around just fine.
ITT: poor people
different strokes for different folks ... I have a nice watch that I enjoy... I have a few nice cars that I enjoy (to say cars are a hobby is an understatement)... I go on many vacations with my significant other... those are the things I prioritize
I am a cheap bastard when it comes to other things though... like food, housing (have a modest 2br condo in a nice area, that is more then ample room for myself and my significant other, no need for a gigantic house... yet), etc...
will my priorities shift when I have kids? absolutely... but for now I reach my savings goals, retirement goals, etc... and enjoy life. I never understand why people save save save with no end in sight. life is meant to be enjoyed... enjoy it responsibly and have fun
Has nothing to do with salary and everything to do with accumulated wealth.
I wouldn't touch a car like that unless it was less than 1% of my accumulated wealth.
I have a small watch collection with watches over $10k (Rolexes) and $30k (Audemars Piguet / Patek Philippe), all of them are in stainless steel (used to have rose gold Royal Oak 15202OR but sold it). None of the watches are noticed by people and I like it that way (stay under the radar), I could also sell them at near the prices I bought them for and I have insurance on them. I also have a car that was around $90k after taxes / fees (Maserati Ghibli). This car does bring me some attention and I feel a bit uncomfortable at times. The car has depreciated to around $83k now. I won't reveal my income but I would say you should be making at least $500k before making these purchases. I have a nice amount saved up in savings (also some money in Vanguard ETFs and stocks, mostly facebook which I bought at $35) and have a lot of disposable income. I bought everything in cash and have no debt (mortgage paid off, cars / watches paid in cash). It also helps to be single instead of raising a family.
Probably better phrased as disposable income needed due to adjustments for CoL and personal spending habits, but annual salary is something most people can more easily relate to.
Lets assume all necessities are covered including retirement savings.
At a salary of $100k/year, having $1.5k disposable income a month, you can mathematically afford it but it wouldn't feel like the wisest purchase.
Pretty much this. I don't own $10k watch. I don't own $100k car. Could I? Yes. Do I care? Not really. It's not a priority for me. But my business partner owns multiple $10k plus watches. He owns multiple $100k cars like Ferrari, Maserati, Range Rover, Rolls Royce. He owns like four boats with one that costs over $300k. He enjoys his life and spends his money. His reasoning is he can always make more and spending money motivates him to make more. Sometimes I wonder if he's doing it right and I'm a fool for not following and doing the same.
It's both. I can make $30k a year and take 20 years to diligently save for a $100k car. However, I wouldn't be able to afford the maintenance on the car. To sustain the costs associated with owning an expensive car, you need high income.
Wtf. So he is basically in a rat race with himself? Ridiculous.
I think your peer is a bit of an idiot unless he can sell all those assets for at least half of their cost back. I get the appeal of high end cars, watches, and so forth but what is point if you can't even use them? Your peer sounds like one of those people who buys things purely for status (bragging rights, look how wealthy I am, bling, etc.).
To those of you saying watches keep there value. I have a hard time believing you. Is there a large aftermarket for used watches?
Yeah, for a 25 year retirement at $50000 annually and a 4% annual return, you'd need to have saved $1.4 million.
That would mean it would support you from age 65 to age 90. My grandfather lived to 99, and he smoked like a chimney.
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I make six figures and bristle at the thought of spending even $30K on a car. My purchased off-lease Camry gets me around just fine.
Old expensive watches aren't worth shit unless you have someone willing to give you cash for them.
Rolex and some of the other luxury watches hold their value pretty well. I've looked at pre-owned Rolex's and talked to a dealer about them. I've even seen certain models increase in value. The crap you can buy at Macy's isn't worth shit though. Even a $3k TAG Heuer isn't worth 1/4 of its original sales price once you pay for it and walk out the door with it.
How much will the dealer give you for a used watch, 60% of its value?
It depends on the watch and the condition. I'm not a watch dealer so I don't know. There is definitely a market for used Rolex watches but you'd probably do better selling it private party than trading it to a dealer unless you're trading it for another Rolex (in which case they might give you more for your trade just to sell a new model). There are watch forums online that could probably give you a better idea what a particular watch is worth.
How much were you making when you bought the $10k Rolex, if I may ask.