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Net worth before you can "afford" $500 shoes?

Discussion in 'Classic Menswear' started by Reevolving, Jun 9, 2011.

  1. Loathing

    Loathing Senior member

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    Oh! I get it...the period after the "aforethought". I have never gotten that straight in my head...until now.

    Thanks.


    Haha, I'm sorry for having been so petty. It is really an insignificant detail. But, at the age of 12 I was beaten up rather badly by an older boy at school for making that very same error whilst doing his homework. British boarding schools [​IMG] . I can thank him though, because I'll never make a grammatical mistake again. [​IMG]
     
  2. Fraiche

    Fraiche Senior member

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    It's not that much for a pair of shoes, let's be reasonable we're on the styleforum here not the hardware forum or something ridiculous like that.

    I think income is a better indicator of whether or not you can "afford" $500 shoes than the OP makes it out to be. Income reflects somewhat whether or not $500 shoes will pay you back some as an asset, since a 40K job isn't likely to be one where a $500 loafer would fit well while anything even over $80K I'd say it's a good deal and not something that should affect you financially.

    If affording a $500 shoe is even a question, then you're probably not managing your finances correctly tbh.


    Honestly, if a guy working a 40K job wears a $500 pair of shoes, it's not neccessarily a bad thing since he's abiding by the "dress for the position you want to have" rule.

    The guy might be interfacing with a lot of 80K folks so if he does wear the $500 shoes, I think it's a positive thing since he's representing the company in a better light.
     
  3. DWFII

    DWFII Bespoke Boot and Shoemaker Dubiously Honored

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    Haha, I'm sorry for having been so petty. It is really an insignificant detail. But, at the age of 12 I was beaten up rather badly by an older boy at school for making that very same error whilst doing his homework. British boarding schools [​IMG] . I can thank him though, because I'll never make a grammatical mistake again. [​IMG]
    Really...no problem. My thanks were sincere.
     
  4. RSS

    RSS Senior member

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    Assuming you have no children:

    Yearly income of $150K.

    Net worth would vary by age. Just out of college, not much. At retirement (and/or time of inheritance), $3M+.

    For each child, add .5 of the numbers posted.

    Until this point, I suggest AE seconds.
     
  5. RSS

    RSS Senior member

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    When you can wear them without fear of ruining them.
    This is indeed the answer for being able to afford anything. If one worries about ruining something, one can't afford it.
     
    1 person likes this.
  6. blahman

    blahman Senior member

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    Dumb question. It would be less dumb if reevolving didn't try throw financy terms around to make it sound smart, but since he did he is expected to know marketing 101 and the concept of 'value'. And this 'value' is why a broad on minimum wage bust her own ass and go knee deep in debt getting a $2000 handbag. This value is also why some people would pay $2000 for a suit but wouldn't pay more than $100 for a pair of jeans.
     
  7. Don Carlos

    Don Carlos Senior member

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    I'm planning to purchase a pair of $500 shoes next year from Reevolving, and would presumably finance the acquisition through some combination of cash, debt, and equity sale or transfer.

    Reevolving's cash on hand is approximately $500, and let's assume mine is $100. I'm uncertain about the future, and particularly, about how the Fed's actions might affect my borrowing costs in the coming year. Furthermore, I've got a coming B&S sale in three months, and I am trying to sell $200 worth of merchandise in said sale; I'm estimating that I have about a 50% chance of achieving 100% sell-through of all inventory. Inventory unsold at this sale will be held in storage at a cost to me of $25 per month for the full lot (so we can consider this a fixed $25 monthly fee, with no marginal cost associated with n+1 items versus n items in storage). All inventory was stolen in the first place (from SpooPoker), and as such, there is no COGS to worry about.

    Please advise.
     
  8. Loathing

    Loathing Senior member

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    I'm planning to purchase a pair of $500 shoes next year from Reevolving, and would presumably finance the acquisition through some combination of cash, debt, and equity sale or transfer.

    Reevolving's cash on hand is approximately $500, and let's assume mine is $100. I'm uncertain about the future, and particularly, about how the Fed's actions might affect my borrowing costs in the coming year. Furthermore, I've got a coming B&S sale in three months, and I am trying to sell $200 worth of merchandise in said sale; I'm estimating that I have about a 50% chance of achieving 100% sell-through of all inventory. Inventory unsold at this sale will be held in storage at a cost to me of $25 per month for the full lot (so we can consider this a fixed $25 monthly fee, with no marginal cost associated with n+1 items verus n items in storage).

    Please advise.


    You should use your $100 to buy a 20% equity stake in Reevolving's $500 shoes immediately, to get your foot in the door, so to speak. If your B&S sale goes well, you should gradually buy additional 5-10% lumps of equity in said shoes. Once you reach a point where you own close to a 50% steak in these shoes, you should consider a leveraged buyout. You can then use the income generated by the shoes (see above for more on 'leather goods in prostitution') to pay the interest payments.
     
  9. Don Carlos

    Don Carlos Senior member

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    You should use your $100 to buy a 20% equity stake in Reevolving's $500 shoes immediately, to get your foot in the door, so to speak. If your B&S sale goes well, you should gradually buy additional 5-10% lumps of equity in said shoes. Once you reach a point where you own close to a 50% steak in these shoes, you should consider a leveraged buyout. You can then use the income generated by the shoes (see above for more on 'leather goods in prostitution') to pay the interest payments.
    Will you help me line up the debt financing and a secondary buyer for the shoes once I own them and want to dump? Also, can you help me set up derivatives of the shoes to sell off in some fashion? Maybe based on the risk that Reevolving actually wears them and ruins their pristine soles?
     
  10. blofeld

    blofeld Senior member

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    Take a peek into MC and see this, shake head, confirms B&S is the really the only reason to visit SF anymore.
     
  11. forex

    forex Senior member

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    What about $5K bespoke suit?
     
  12. RSS

    RSS Senior member

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    What about $5K bespoke suit?
    Change my numbers in Post #144 to yearly income of $500K and a net worth of $10M.
     
  13. Knucklehead

    Knucklehead Senior member

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    I just spent $500 on shoes. I just started my first job after med school. This year my salary will be ~56k USD pre tax (but I live in CA so...30 something after taxes). I feel justified to make this purchase because I don't have any children, I don't have a car note, and I only pay 500 dollars per month in rent. I'll purchase a few more pairs in the 200-300 range this year (Herring/Loake/AE), but another 500 dollar purchase this year is unlikely.
     
  14. feastmaster

    feastmaster Active Member

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    Are the shoes on sale? Anyway, I think you just have to do what's practical for yourself. Every time I go into Guitar Center I see someone buying a $1000 guitar or a $500 amp and I can guarantee you that this is not their only big music purchase over the course of the year. If you have expendable income, at any level of earning, go for it.
     
  15. Archivist

    Archivist Senior member

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    Simple question:
    In your opinion, what should a guy's liquid net worth be before he can "afford" $5.00 toilet paper? (Your answer is a number)
    Conversely, below what level would your natural reaction to his $5.00 toilet paper be: What a jackass!

    First, please note the use of quotations above.
    This is not a literal question. (eg: When he has $5.01, duh!)
    That said, $5.01 certainly is a valid answer.

    I am using net worth and not salary because the latter can be a very weak gauge of one's financial solvency.
    Free Cash Flow (FCF) paints a more direct picture.

    I also deliberately picked the $5.00 threshold, and not $3.00 for Scott's, et al.
    $5.00 is a different pricing paradigm entirely, and is probably 3 SD's over the average toilet paper expenditure.
    At this level, one has deliberately groomed himself as a "serious toilet paper guy".

    So, at what point does a guy have no business wiping with $5.00 toilet paper, and be viewed as a fraud/idiot?

    Alternate question: What other criteria would you use in deciding whether a guy can afford $5.00 toilet paper?
     
  16. westinghouse

    westinghouse Senior member

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    You should first afford the $500 shirts and $500 pants that go with those $500 shoes.

    Don't forget the $5,000 watch too.

    If you do forget and I see you, I will be the first to call you out on it.

    "When I see a guy with an expensive watch and cheap shoes, I know I have him nailed"

    -George Hamilton
     
  17. sportin_life

    sportin_life Senior member

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    I just bought another pair of $500 shoes. I don't make much b/c I'm still in training, but I guess that's what moonlighting is for [​IMG]
     
  18. pvrhye

    pvrhye Senior member

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    Well I did say "some degree". I am a shoemaker not an English professor. I am not even all that well read...I've never read Jane Austen, for instance.

    So please detail my mistake so that I may avoid repeating it.


    It's good to see that you can cobble together a coherent sentence.

    My sense of humor is unforgivable...
     
  19. scientific

    scientific Senior member

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    Will you help me line up the debt financing and a secondary buyer for the shoes once I own them and want to dump? Also, can you help me set up derivatives of the shoes to sell off in some fashion? Maybe based on the risk that Reevolving actually wears them and ruins their pristine soles?

    bro it's ok just keep buying until you become a 'systemic risk'
     
  20. upnorth

    upnorth Senior member

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    The question is interesting because it takes a bigger view of whether a $500 shoe purchase "fits" into one's lifestyle based on net worth. Chances are that in reality, it has very little to do with it. It depends on one's overall priorities (as I've personally experienced going into parenthood), availability of disposable income, preferences, expected utilization amongst other things.

    Some people are average income earners yet they spend more on shoes because they just want a simplified rotation of 3-4 high quality good fitting essential shoes. That's very different from someone who wants to buy a $500 fun pair of bright green suede loafers, to make it the 82th pair of shoes in his collection.

    My take is that if you have to think about your net worth before you decide if you should get the shoes, you either cannot afford them or the shoes are not enticing enough to make a compelling case to buy them. Either way, you shouldn't buy them.
     

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