WatchUSeek Watch Forums banner

1 - 20 of 54 Posts

·
Registered
Joined
·
117 Posts
Discussion Starter #1
I know it is a crazy question. The standard party line answer will be whatever you want to spend, it's a free society. But yet there are guidelines to financial decisions. When you buy a house, the bank restricts you to certain percentages of your annual gross income if you need a mortgage.

There are also common sense guidelines. Someone living in a $200,000 house would not be driving a $350,000 Ferrari much less a $1 Million plus Bugatti.

So what percentage of net worth is appropriate for a single watch?

Let's say you are fortunate enough to be worth 1 million dollars. At 1%, this would put you on the $10,000 range: Rolex, nicer IWC, JLC, GO, etc. Up it to 3% and you get to play in the entry level Patek, Lange, Journe world. If you want to get really crazy, up it to 10% and you get upper end Lange, Patek chronograph/annual calendar, etc.

There are may tangents to this question. You could also apply this principle to your entire collection. What percentage of your net worth would you commit to your entire watch collection? We are all WIS's and want to own the best watches but we also have to have a minor degree of sensibility and meet our other responsibilities.

What say you?
 

·
Registered
Joined
·
17,054 Posts
I'm not really worth anything so I can't answer that. Can anyone? What is " worth"? Value of assets less mortgage etc? I spend what the missus permits me to spend of whatever I've got left over after rent, council tax, food and beer. So not a lot.

This question has been asked in the past in various guises but it's impossible to get a consensus or common ground for an answer: some here make millions but spend it on their houses, cars, kids and have less disposable income then others who make less. Lots of variables.
 

·
Registered
Joined
·
3,107 Posts
Net worth is tough, as it can be quite tied up. I have happily spent in the region of one month's net income on a Rolex, which is probably easier to measure.
 

·
Registered
Joined
·
168 Posts
I don't think there is a static percentage one could use for this, but 1% doesn't seem unreasonable to me. I do think liquid savings would be a better basis than net worth though. The house comparison is a good reason why. In the San Francisco area, its difficult to own a house in an okay neighborhood worth less than $500k, meaning that a $600k net worth means you have no extra cash on hand. But I have family in Detroit, and around there where decent houses can sell for under $100k, a $600k net worth likely means a lot of cash on hand.

Maybe something like 5% of cash on hand would be a decent starting point.
 

·
Registered
Joined
·
10,872 Posts
  • Like
Reactions: Bwana1

·
Registered
Joined
·
28,501 Posts
Not that much, but more than almost anyone I know that is non WIS would find sensible...
 

·
Registered
Joined
·
53 Posts
If you don't spend 25% of your net income on watches you're not a WIS.
hope this is a joke...

I think 1% of net worth is a great measure for a cap on any one watch purchase. That is to say any assets you have - cash, 401k, whole life policy, IRAs, other investments, equity in your home, etc. 1% of that. So if totals $1MM, then a $10k watch. I cant imagine spending 25% of my net income on a watch, so I must not be a WIS :)
 

·
Registered
Joined
·
11,601 Posts
Considering what I can justify (and convince my better half of) spending on a watch, I am probably somewhere around a fraction of a percent.
 

·
Registered
Joined
·
1,071 Posts
There are also common sense guidelines. Someone living in a $200,000 house would not be driving a $350,000 Ferrari much less a $1 Million plus Bugatti.
You sure about that? Real estate isn't what is was worth a few years ago. Depending where you live, (midwest, for example) you can get a hell of a nice house for $200K.
 

·
Registered
Joined
·
60 Posts
hope this is a joke...

I think 1% of net worth is a great measure for a cap on any one watch purchase. That is to say any assets you have - cash, 401k, whole life policy, IRAs, other investments, equity in your home, etc. 1% of that. So if totals $1MM, then a $10k watch. I cant imagine spending 25% of my net income on a watch, so I must not be a WIS :)
Interesting question I'm a graduate, loads of student debt,low paying job, no car,no house. I rent with not much money left over.

I decline to play this game. No cap on spending for me |>
 

·
Registered
Joined
·
779 Posts
Funny you say that. There's a guy on my block who's house is valued at approx $130,000 and has a $200,000 Lamborghini in his garage.
Same thing happens a lot here in SoCal. There are plenty of people who live in a crappy one or two bedroom apartment in the middle of downtown LA and drive $40K-$60K cars. Absolutely nuts!
 

·
Registered
Joined
·
2,752 Posts
Funny you say that. There's a guy on my block who's house is valued at approx $130,000 and has a $200,000 Lamborghini in his garage.
Is he an Irish guy, originally from New York...and his name is Vinny ?
 
1 - 20 of 54 Posts
Top