WatchUSeek Watch Forums banner

What percentage of your net worth would you spend on a single watch?

38K views 109 replies 72 participants last post by  Steverino 417 
#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?
 
See less See more
#94 ·
Hard to say. I think for things like watches, most people would look at disposable income instead of net worth. A watch is money spent that will most likely never be recouped. We like watches, but it's like buying a TV or a toaster. It's losing value the minute you buy it. Additionally, the purchase is going to be so small in terms of net worth, It's hard to consider a percentage. It's like buying milk. What do I prefer and can afford. How am I doing in life and am I buying my milk at the $1 store or Frank's Organic Goods?
I think this post summarizes for me why this is quite the difficult exercise. I wouldn’t base it off of my net worth.

But what I know is
1. There is too much maths regarding % involved
2. It becomes too theoretical when I start to day dream about if I made more money…
3. I get sad about the reality of my actual net worth 🥲


One thing for sure is that I would not wear. Six figure watch regardless of my net worth.
 
#99 ·
Net worth doesn't necessarily translate to liquid cash for purchases. Having $1 mill in the bank is very different than having $1 mill in equity in a house(s). A mill cash in the bank you could easily take $25k out and buy a watch no problem. But a mill in assets (house equity, stocks, etc.) then you're having to sell assets, loans or cash out refi homes to access that liquid cash. I have a friend who has new trucks, a Mclaren, nice home, boat, camper, etc. and makes probably $350k/year but he's financed everything, doesn't out right own anything and spends all his $$ and therefor doesn't really have much "net worth" but he could afford to go buy a $25k watch if he wanted to. Its all relative and too many different situations to identify the means someone can afford to purchase a watch.
 
Top