How much assets in watches?

[Vivalas]

I’ve never really considered this before but a conversation I had with a 23 year old about watches and money was quite interesting.

He bought a Milgaus for £7,000 and is buying a starter home with his wife and putting in £14,000 deposit between them (10% on a £140,000 purchase), so £7,000 each. His assets are £14,000 so 50% of everything he has is in watches. Buying is cheaper than renting and at his age he’s happy with his watch and hasn’t really a care in the world.

A few wis friends discussed this and we’ve come to the conclusion that the younger you are, you generally have less commitments and therefore can spend a lot of your money on watches. As you get older and have mortgages, children and all sorts, your assets spent on watches declines. Most were around 5% to 10%.

Oh to be young and carefree again

[RaZCaL]

Looking back, I wish I saved more when I was younger instead of spending money on useless things and going out clubbing. Buying bottles with friends were dumb. Those could have gone to watch funds and/or other necessity. Owning a home is expensive.

[winst]

I was thinking about this the other day. It is frightening how much it costs to get on the housing ladder these days let alone the Rolex ladder. When I got my first Rolex Oyster Date as a 25 year old about 25 years ago, a good condition 10 year old one it cost me the equivalent of about 50% of my salary then in a lower management position. Now, to get an equivalent 10 year old watch it would cost me more than a months take home salary in my current middle management position! Not only that, our first house was the equivalent of about 3 times my salary at the time and it is now still 3 times but of my greatly increased salary!!!!!

[pearson1995]

I’m in my 20’s, most of my money is tied up in watches

You’re right though, I have to pay for rent, bills etc. That’s it, no kids or real commitments yet so why not.

[winst]

Originally Posted by pearson1995

I’m in my 20’s, most of my money is tied up in watches

You’re right though, I have to pay for rent, bills etc. That’s it, no kids or real commitments yet so why not.

To be fair, money is better in the right watches at the moment than it is in the bank. If you ever need money in the future, hopefully you could sell just 1 or 2 of your watches and still keep a favourite 1 or 2. That’s quite a nice position to be in.

[sokoloka]

My first AP cost me more than my first annual salary 10 years prior. Crazy to think about from that perspective.

[crew]

When I was 25 I inherited a very large amount of money from my uncle.
I spent almost 1/2 of it in less than 6 months on booze, women and watches. The other 1/2 I just wasted.






-an old joke from an old man!

[RoscoPico]

Originally Posted by crew

When I was 25 I inherited a very large amount of money from my uncle.
I spent almost 1/2 of it in less than 6 months on booze, women and watches. The other 1/2 I just wasted.






-an old joke from an old man!

ah man....................

[RoscoPico]

if i had to put a number on the value of my watches, i'd say 5% of total net worth. and i am now having a hard time deciding on where to spend money :)

[Blansky]

Without my watches, I'd be worthless.

[Vivalas]

Originally Posted by crew

When I was 25 I inherited a very large amount of money from my uncle.
I spent almost 1/2 of it in less than 6 months on booze, women and watches. The other 1/2 I just wasted. -an old joke from an old man!

The late and very great George Best said:

I spent a lot of money on booze, birds and fast cars, the rest I just squandered.

[superdog]

3%

[BNA/LION]

It's a negligible amount here...

[Pw92676]

I don’t consider watches (or jewelry, furniture, cars, bags, clothes etc) in my net. They are certainly part of estate planning but I don’t consider it an asset. IMO once any item (barring land) is bought, i just don’t consider it an investment.

[Andy0331]

My stepfather was a CPA & taught/advised me to prepare an annual net worth statement since my early 20's (when I had essentially nothing). He said I should include everything, but only assign token values to "personal" assets. So, for watches, I do consider them in my net worth, but only at liquidation prices (~10% under what a grey would pay). I also don't increase their "value" based on trends, etc, although I would reduce my assigned values if the market tanked.

That said, I only have ~2.5% "tied up" in watches.

[Rock]

My life strategy has always been that 'luxury items' only came after all the basics had been achieved. This meant that watches came in my 50's.
Worked for me but I am a fairly cautious person. I have a mate who did it differently and I'm sure he is happy with his decisions. He will have had some material things that I have never had and vice versa.
The important thing is to be aware of your options and the longer-term implications that flow from them. Then you can make these decisions with a clear mind and no regrets or recriminations later.

[sokoloka]

Varies for everyone but I would say my end game is to keep it in the rounding error category.

[Watchflair]

It's all a balance of what you are comfortable with and if you are checking all the other boxes with expenses and savings.

My wife and I somewhat follow the Dave Ramsey school of thought when it comes to our finances - I say somewhat as we do a couple deviations. Our only debt is a mortgage that will be paid off in less than 10 years and a lease payment on my wife's car (this is done out of convenience and the desire for the latest and greatest in terms of tech and safety).

I do believe in living well and enjoying the fruits of your labor - if you don't then what's the point.

[twitch54]

Originally Posted by Vivalas

I’ve never really considered this before but a conversation I had with a 23 year old about watches and money was quite interesting.

He bought a Milgaus for £7,000 and is buying a starter home with his wife and putting in £14,000 deposit between them (10% on a £140,000 purchase), so £7,000 each. His assets are £14,000 so 50% of everything he has is in watches. Buying is cheaper than renting and at his age he’s happy with his watch and hasn’t really a care in the world.

A few wis friends discussed this and we’ve come to the conclusion that the younger you are, you generally have less commitments and therefore can spend a lot of your money on watches. As you get older and have mortgages, children and all sorts, your assets spent on watches declines. Most were around 5% to 10%.

Oh to be young and carefree again

LOL, not my way, when I was younger I had mortgages and debt, lived wisely and was debt free before my 50th birthday (now 66), including putting two kids through college. No mortgage or car payments in 18 years

[GB-man]

Currently .7%

[stockae92]

According to my wife ... "Too much" LOL

[CamSLC]

I try not to worry about what others are doing, but I would say if you're net worth $10k, and 75% is in watches that's probably not good.
Now if you're worth eights figures and it's 75% in watches, you still have a nice emergency fund.

[Boothroyd]

Considerably less than 1%.

[loanrngr]

10%

[SkyJuice]

I would probably aim to pay off my mortgage before considering a high value watch such as Rolex. But then again most of my mates think I am an old fashion fellow.

[Burlington]

Good move to get on the housing market at that age but don’t think watches would have been on my radar quite yet.

[Ihatecheese]

House deposits were ridiculous around here, so i did not focus on them initially, favouring renting and my pretty watches. I suppose it depends where you are and what you have the means to achieve. As time progresses I am divesting from this stuff and focusing on the grown up things like houses and the size of the back yard.

[HHIslander]

Originally Posted by sokoloka

Varies for everyone but I would say my end game is to keep it in the rounding error category.

+1

For me, watches are a hobby and a source of pleasure. I like watches. If it ever became an investment item, then it wouldn’t be fun anymore. There are many better and safer ways to invest money.

[whattimeyougot]

Originally Posted by Andy0331

My stepfather was a CPA & taught/advised me to prepare an annual net worth statement since my early 20's (when I had essentially nothing). He said I should include everything, but only assign token values to "personal" assets. So, for watches, I do consider them in my net worth, but only at liquidation prices (~10% under what a grey would pay). I also don't increase their "value" based on trends, etc, although I would reduce my assigned values if the market tanked.

That said, I only have ~2.5% "tied up" in watches.

This is also my philosophy. @Andy0331 your Stepfather taught you a wise lesson.


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[brandrea]

In all honesty I don’t think of them as assets. I wouldn’t list them as such on a net worth statement.

To each their own.