Where's Your Head At?: I'm Calling You Out

[Posh]

:-D. Completely agree with this. Complete waste of capital. Until its a fraction of a percent of total net worth it doesn't make sense. The only reason we buy luxury goods is because we like them. We like how it makes us feel. There is no logic. I know executives that walk into meetings where hundreds of millions of dollars of business takes place wearing a seiko quartz. A very successful attending I knew while I was training drove a Subaru impreza. The great thing about this hobby is that you can get the pleasure of the goods without the tie up of significant capital.

And when I say fractional, I would posit no more than 10% (or a little less) of your income should go to these "toys." A friend of my fiance does some investing for a new member of the Ravens, I believe, and his contract is only worth about $1.5 million a year, if I recall correctly. He bought a little over $315,000 worth of jewelry. Now, I have no idea how his money is allocated or anything but that's already over 21% of his income in just baubles alone. He couldn't really talk the guy out of it either.

This hobby could really have saved him some money because replicas for many things are really that good. But he's REALLY wanting to keep up appearances.

That's an odd read for sure.

You could spend 60K a year on watches and not NOTICE (which implies a good deal of disposable income), but wouldn't do it because you could make more money with the capital?

What's the point of making the money if you're not going to spend it and enjoy it (at least some of it)?
You might as well set up simulated trading accounts and make millions on paper, (or you could use your skills to help other people struggle a bit less).

As for temporary pleasure, it's ALL temporary.
The Brinks truck ain't gonna' follow your coffin to the cemtery...

The acquisition of money in and of itself is an enjoyment for some, pleasurable even. And if you happen to like your children, it can allow them the luxury to do anything they choose. A watch, a dress, a bag or a car will not. I also agree with the teaching of others on how to build wealth. That's not a bad thing to do at all, especially to a spendthrift family member! LOL

But like Bob said, luxury will scale with increase of wealth and income. No one is saying live like an ascetic and be miserable. A little denial now can reap grand rewards in the future.

Compound interest is a helluva drug!

[Aradune]

And when I say fractional, I would posit no more than 10% (or a little less) of your income should go to these "toys." A friend of my fiance does some investing for a new member of the Ravens, I believe, and his contract is only worth about $1.5 million a year, if I recall correctly. He bought a little over $315,000 worth of jewelry. Now, I have no idea how his money is allocated or anything but that's already over 21% of his income in just baubles alone. He couldn't really talk the guy out of it either.

This hobby could really have saved him some money because replicas for many things are really that good. But he's REALLY wanting to keep up appearances.

I've been surprised how my interest in this hobby has evolved. I too work in the financial industry with UHNW clients which is further compounded by living in Miami. My first rep was a Franken V1 HBB which I used as an experiment to see what types of reactions I would get from clients. Surprisingly, the rep opened up new conversation topics that my gen Rolex never did.

I began experimenting with different brands, Panerai, AP, etc and it's amazing (at least in Miami) how much it resonated. I've now become a timepiece enthusiast slowly teaching myself how to work/repair/mod my collection.

And the best part of all, the money for the gens I could have purchased has now fully funded the college account for my little girl

Thank you RepGeek community!