I’ve only bought two really nice expensive watches. One was a Rolex and the other was a Bulgari. Each was purchased to celebrate a financial “win.”
(Don’t tell daveramsey.)
And each time, shortly after my financial “win” came a drought. The first time I went from a steady job into a new venture. I went from a steady, reliable income to an unreliable income and lots of financial stress.
The second time was after a fund that I was managing had a great year of out performance. This would allow me to grow my assets under management and bring in many new clients I thought. It wasn’t that easy as it turned out.
Each time, instead of creating a buffer for myself (i.e. an emergency fund or stability fund), I was in need for income shortly after splurging on something I decided I deserved.
Work hard and reward yourself. That’s the way it was.
I was doing really well and needed to show it. I think this is pretty common for men of a certain age, and it probably applies to women too. Perhaps a certain piece of jewelry or expensive bag or purse.
The truth is over time we change. Our tastes change. Do I love these watches the way I used to? Not really. My favorite watch is a bright yellow sport watch I wear on weekends. It cost $50.
And the truth about the expensive ones is that you worry about them. I keep them in a watch winder. I worry about them when I travel. They’re expensive and valuable. Except if I wanted to sell them, I would be disappointed in their real value.
If my business has another great year, I’m unlikely to get a new Rolex or Breitling. Am I becoming wiser as I age? Or have I finally appreciated the value of things?
We work hard and we want to reward ourselves. We want to show our successes.
I’m a big fan of cash right now. Cash always gives you options.
What are your thoughts 👍