Expensive watches are a waste of money
First off, I realize we’ve ruffled some feathers here so allow me to explain. After all, Is buying that Patek Philippe, or that Rolex watch really going to make such a big impact on your financial situation by the time you retire? You’ve got years and years until you are going to need to retire anyway right? We have quantified why we believe expensive watches are a waste of money.
We wanted to know how many days of financial independence you have to give up by purchasing a luxury watch. Read on to find out!
But first, we also wanted to give our take on the positive side. Here are a couple considerations we hear people making when determining whether or not to buy an expensive watch.
Reasons to Buy an Expensive Watch
- My watch holds its value well, so it can’t be a bad purchase.
- Our take: This provides luxury watch buyers with more comfort than it should. Even though the watch itself is not losing value, there is an opportunity cost associated with not being able to invest the money you spent on the watch.
- I need an expensive watch to impress my clients.
- Our take: You should take half an hour to take a good hard look at your interactions with your clients to determine if this is really true. If it is, then a nice watch is simply the cost of doing business for you. In this case an investment in an expensive watch may be worth it. But it is worth noting that this is a little ridiculous.
- It makes me feel like I have high social status.
- Our take: Maybe feeling like you are of an elevated social status is truly deep down important to you. Mostly however we see a deeper desire at play, which will only be temporarily, and partially fulfilled by purchasing an expensive watch.
- I understand and appreciate the craftsmanship.
- Our take: Cool! If the most expensive watch out there really leaves you in awe, you just need the king of mechanical watches, and you appreciate the engineering that goes into it even though you couldn’t care less about the new apple watch 5, more power to ya!
With the above said, obviously there is more to it than a simple numbers and cents exercise. However, knowing exactly how much free time you are giving up by purchasing that patek philippe is a very valid and useful data point when evaluating such a decision.
Are Expensive Watches a Waste of Money?
Finally, using the Free Times Framework as detailed here, we arrive at a free time value for three different “tiers” of watches. See here for the four different watch choices.
|Watch Tier||Watch||Price||Free Time Lost|
|1||Patek Philippe||$76,000||2,608 Days|
|4||Citizen Eco||$114||4 Days|
To reiterate, this means that purchasing a patek philippe given the financial conditions assumed in the free times framework post here, will cause you to have to work for someone else for over 2,600 additional days! Personally, that Citizen Eco would be the way to go for me.
There is no accounting for taste of course, and only you can know what will make you happy. But this is one way of thinking about the impact of your financial decision to purchase an expensive watch that should help you better contextualize really what it is that you are giving up.
Tier 1: Patek Philippe
Tier 2: Rolex
Tier 3: Omega
Tier 4: Citizen Eco