Expensive Watch at a Young Age

[CPRWATCH]

Originally Posted by watchluxus

I like the idea of property. Unfortunately I have been raised very "anti-property" due to the way my parents invest their money

Nothing wrong with that , if its made your parents enough money it obviously worked for them

[watchluxus]

Originally Posted by mahefa

Do what you like, just don't get yourself in to situation where you are wealthy man with no money. Other than that, where do you need money? Does your business grow and scale without big investments before profit is achieved. If you dont need money, spend the money.

Thankfully the model is very scaleable with no additional investment needed but time. The projection of 40-70K USD net is with 2 clients. I have signed two more clients, and hope to be doing six clients by the time I graduate, meaning I would net 120-210K PA.

[Jimbogigolo]

Originally Posted by MrInternational

My recommendation is to take advantage of compounding interest, buy a used watch if that will satisfy you. Otherwise wait to purchase. Rule of 72 - at 5% interest you'll double every 14 years. This your $20K will become something like $160K by your 60s. That's a lot of watch money. Obviously you should enjoy life now as well. I guess balance is my message. Spending a third or half of your annual income on a watch doesn't make a lot of sense to me even if your expenses are low (right now). Spending that much on a watch at a very young age is quite extravagant. Cash is important in life. Build up a storehouse now while you can. Get the momentum really going. Buy assets (things that put money in your pocket without you trading your time for the money, like a job). The most powerful concept in investing is not portfolio composition, asset diversification, fancy trading techniques, or even getting high annual returns. It's time. This is the most precious commodity in so many ways and investing it's the magic. Congratulations on this being your problem to solve! Good luck with your decision.


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Kudos and agree to this response!


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[watchluxus]

Originally Posted by Stillwater702

70k per year without expenses, courtesy of your parents, is pretty good, especially for your age. 40k gross income is a different story. Since you are just starting your job and have no exact idea yet on how much you're going to make, thus the wide gap in projected income, I'd hold off on the 20k watch.

If I'm in your shoes, I'd still satisfy my watch craving by buying something nice but not a 20k watch. Perhaps a 6-8k watch? After that, incoming funds will be used to invest. Another option is to set aside 5k per year and buy your grail watch when you're 25. It's sort of a milestone that you can celebrate and will make the watch extra special. And you're still only 25 years young at that time. If it sounds too long of a wait, a SS rolex will suffice if that's not an option.

Timing is everything. When I mention of investing, it's not just financial investing. Invest in life experiences. Watches will always be there. You're off to a good start with your vacation plan with your parents.

Good luck.

Thank you very much for your input

This does sound like a sound idea! The money (40-70K net) is not from my parents, but self-made, however they are making my expenses minimal hence the very fortunate position.

I do agree that maybe saving up 4-5K PA would make the purchase more special, especially given that I already have a GMTIIC on my wrist.

[Jhowton23]

just a quick thought- if you feel like you owe some of your success to your parents, maybe buy three $5-6k watches for your parents and yourself to thank them and celebrate your current/future success together. There's always time to make more money!

[watchluxus]

Originally Posted by Jhowton23

just a quick thought- if you feel like you owe some of your success to your parents, maybe buy three $5-6k watches for your parents and yourself to thank them and celebrate your current/future success together. There's always time to make more money!

Trust me, the amount of times I have tried to make my Dad pick out a watch for me to gift him He prefers to stick to his trusty Tag

[Speed]

Originally Posted by watchluxus

Apologies if this has been brought up before in a similar situation. I usually see each situation as unique, and thought I could receive some valuable advice from the successful and kind members of TRF

Sorry. You may in fact be a genuine young person with wealthy parents giving you a load of cash....and you want to buy an expensive watch / thought you'd start this thread.

This site gets a lot of *very similar* threads posted...so one begins to wonder about authenticity.

These threads usually start out much like yours.

Some have the OP stating an age of 16 or 18 and ask what do folks think about a person of that age buying a gold or spendy Rolex. Some have pics of the young mans Ferrari or tales of their investment banking father wanting to teach them the value of fine watches by letting them buy a whatever model.

So apologies if you are seriously considering buying a watch as described...and wanted advice. At any rate, you've received some good tips.

[watchluxus]

Originally Posted by Speed

Sorry. You may in fact be a genuine young person with wealthy parents giving you a load of cash....and you want to buy an expensive watch / thought you'd start this thread.

This site gets a lot of *very similar* threads posted...so one begins to wonder about authenticity.

These threads usually start out much like yours.

Some have the OP stating an age of 16 or 18 and ask what do folks think about a person of that age buying a gold or spendy Rolex. Some have pics of the young mans Ferrari or tales of their investment banking father wanting to teach them the value of fine watches by letting them buy a whatever model.

So apologies if you are seriously considering buying a watch as described...and wanted advice. At any rate, you've received some good tips.

As a 21 year old that is making his money through social media, I know better than anyone that there are a PLETHORA of trolls out there, so no offence taken! But yes, I most definitely have received some great advice! Thank you TRF!

[Stillwater702]

I should have rephrased that. What I meant was that you are living free of expenses and therefore pocketing the 40-70k is because of your parents helping you out. So 70k is pretty good for your age once you hit that 70k max potential income, considering you don't have expenses. There are so much you can do with 20k instead of buying a watch. I know our job here is to enable each other but that's my honest advice to your sincere question. Sounds like you've already made your decision.

Originally Posted by watchluxus

Thank you very much for your input

This does sound like a sound idea! The money (40-70K net) is not from my parents, but self-made, however they are making my expenses minimal hence the very fortunate position.

I do agree that maybe saving up 4-5K PA would make the purchase more special, especially given that I already have a GMTIIC on my wrist.

[Jhowton23]

Originally Posted by watchluxus

Trust me, the amount of times I have tried to make my Dad pick out a watch for me to gift him He prefers to stick to his trusty Tag

Seems like our parents are similar. I've brought up doing the same for my parents and they wont have any of it- even when i explain that its me trying to thank them AND share my passion

[watchluxus]

Originally Posted by Stillwater702

I should have rephrased that. What I meant was that you are living free of expenses and therefore pocketing the 40-70k is because of your parents helping you out. So 70k is pretty good for your age once you hit that 70k max potential income, considering you don't have expenses. There are so much you can do with 20k instead of buying a watch. I know our job here is to enable each other but that's my honest advice to your sincere question. Sounds like you've already made your decision.

Couldn't agree more! I am in a position where I have a high disposable income due to my parents, NOT my income.

[watchluxus]

Originally Posted by Jhowton23

Seems like our parents are similar. I've brought up doing the same for my parents and they wont have any of it- even when i explain that its me trying to thank them AND share my passion

I've realised that my best way of repaying them is calling them everyday, and never wasting the opportunities they gift me with

[Matt_24]

"People who live within their means suffer from a lack of imagination." - Oscar Wilde

[watchluxus]

Originally Posted by Matt_24

"People who live within their means suffer from a lack of imagination." - Oscar Wilde

Great quote

[Mystro]

Yes the OP is crazy even to be thinking about watches in that price range. 40-70K USD/yr at your age seems like a lot but it isn't when you will have so many more expenses coming up. I would say if you could save a honest $50k in savings and not have to touch it after your real world expenses, then reward yourself with a watch but don't use that $50k savings. I want to see a kid your age aggressively attack your retirement fund first and savings safetynet before any indulgements.
Buying a new Rolex feels good but not as good as being retired in your mid 40's and buying any Rolex.

[watchluxus]

Originally Posted by Mystro

Yes the OP is crazy even to be thinking about watches in that price range. 40-70K USD/yr at your age seems like a lot but it isn't when you will have so many more expenses coming up. I would say if you could save a honest $50k in savings and not have to touch it after your real world expenses, then reward yourself with a watch but don't use that $50k savings.

40-70K sounds pretty realistic based on my estimates. If I can save 50K USD then spend the rest, I would not be too sad . Then again saving 70K for retirement instead of 50K is even better ;)

[jbro352]

Compound interest = 8th wonder of the world


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[watchluxus]

Originally Posted by jbro352

Compound interest = 8th wonder of the world


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I think I saw you post that the other day

[Fleetlord]

Tough Talk coming....

Bottom line....With that income level...You're broke, dude



Your parents might have substantial wealth or whatever, but based on your own earnings, you do not. You're 21, btw...so you shouldn't be relying on your folks money anymore.

So don't buy any watch. Take that money and grow your business.

[WatchingAustin]

You only are young once. I was in a very similar position has you. Parents are very simple but helped with college. I had a job and had 40k in cash. I decided 10% was the most I should spend and bought a breitling.

It is your money - buy what you are feeling. Though 20K spent when you only have 70K saved is a too high % of your total IMO.

But again there is something about enjoying life while you're young.

[watchluxus]

Originally Posted by Fleetlord

Tough Talk coming....

Bottom line....With that income level...You're broke, dude



Your parents might have substantial wealth or whatever, but based on your own earnings, you do not. You're 21, btw...so you shouldn't be relying on your folks money anymore.

So don't buy any watch. Take that money and grow your business.

Agreed. By no means do I think that is a high income. I am starting to look at compound interest calculators, and it is tempting not too buy a watch

[watchluxus]

Originally Posted by WatchingAustin

You only are young once. I was in a very similar position has you. Parents are very simple but helped with college. I had a job and had 40k in cash. I decided 10% was the most I should spend and bought a breitling.

It is your money - buy what you are feeling. Though 20K spent when you only have 70K saved is a too high % of your total IMO.

But again there is something about enjoying life while you're young.

Seeing the watch as a % is a good way to see it

[smilloy]

Save the money towards a down payment on a home so you can move out of your parents house.

If my kids were out buying 20k Rolex's while still living at home I would not be impressed.

[watchluxus]

Originally Posted by CPRWATCH

Nothing wrong with that , if its made your parents enough money it obviously worked for them

To each their own I suppose!

[ericmli825]

Don't get one above 10k. I'm 25 and I was already managing a multi million dollar portfolio when I was 20 yrs old. I'm not bragging but a 40-70k job is not good enough for you to own a 20k watch. Why the rush? You can always buy watches later on when you save more. Most of the people here have 100k-1 mil jobs. Like you said you are still young. I haven't gotten my first rolex, hulk, until last month when I made x amount of money


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[pickettt]

Originally Posted by Fleetlord

Tough Talk coming....

Bottom line....With that income level...You're broke, dude



Your parents might have substantial wealth or whatever, but based on your own earnings, you do not. You're 21, btw...so you shouldn't be relying on your folks money anymore.

So don't buy any watch. Take that money and grow your business.

Can I get a witness?

[AK797]

Originally Posted by watchluxus

With that said, if anyone has investment advice beyond the standard throw it into the stock market and it will yield you 5-10%, I would love to hear it

Only thing better than the stockmarket is the Nigerian Stockmarket, 100% gains in just a few weeks, always!

But seriously you are young and you should enjoy your life to the maximum, I bet most of us wish we could be 21 again, with the knowledge we have we would all be epic swordsmen to a man! You sound like you have a sensible head on you and you know the GMTc will hold its value, esp if bought used, so you make the call on how to utilise your money to maximum satisfaction.

[brandrea]

Originally Posted by AK797

Only thing better than the stockmarket is the Nigerian Stockmarket, 100% gains in just a few weeks, always!

[tyler1980]

Originally Posted by AK797

Only thing better than the stockmarket is the Nigerian Stockmarket, 100% gains in just a few weeks, always!

or you could check your email. There are a lot of Nigerian princes apparently, and for a small investment on your part they can make incredible returns. They only communicate by email though, as that keeps costs down, so they can pass the savings on to you

[ericmli825]

Originally Posted by Mystro

Yes the OP is crazy even to be thinking about watches in that price range. 40-70K USD/yr at your age seems like a lot but it isn't when you will have so many more expenses coming up. I would say if you could save a honest $50k in savings and not have to touch it after your real world expenses, then reward yourself with a watch but don't use that $50k savings. I want to see a kid your age aggressively attack your retirement fund first and savings safetynet before any indulgements.

Buying a new Rolex feels good but not as good as being retired in your mid 40's and buying any Rolex.

Actually 40-70k is nothing now. I went to a top tier university in US and undergrads are making 80-150k right out of college. I suggest OP to live within his means and buy watches later since there will always be watches to buy


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