<prompt> Human: Interesting conversation I had with a friend yesterday, when we asked ourselves what financial state we would need to be in before indulging in certain luxuries.The basic assumption is that we would consider splurging on any possible luxury given the right level of wealth, even a 300mn yatch, or a sports club, if we were worth 50bn.So the real question is, on a more practical level, how much would you need to buy a 10,000 Rolex whilst remaining financially responsible? Or spending 50,000 on a car? Even something as small as a 2,000 bracelet.I realise everyone has a different approach to the concept of luxury, a lot of people here wouldnt even consider buying a Rolex regardless of wealth, but for the sake of conversation: is it just a matter of having the cash on your account? Or 10x the cost of the item? Or a milestone in life that justifies the expense? Or maybe just a minimum income per year?So lets take the figure of 10,000, which could be a watch, a handbag, jewelry, a painting, a gun, a piece of furniture, three pairs of shoes, any completely unnecessary item that is pure luxury and pleasure that is NOT your passion given the fact that people instinctively dedicate more resources to their passion. Hypothetically, what do you think you would need, financially speaking, to consider buying it? If youve already splurged on such an item, what situation were you in?100k net worth? 100k annual income? a one-off 10,000 bonus for that year?  <response>: 1. Debt paid off, including the house.2. Emergency fund of 6 months or more3. 15 of income going into retirement4. Some reasonable of income going into college funds, if you have childrenOnce all of those boxes are checked, if theres any money left feel free to buy whatever luxury you want via saving up that extra money and buying the luxury in cash.Thats the only situation that I could be in where I would feel at all comfortable in buying a 25,000 car.For a milestone, or if its something that you really want and its closer to a 2000 luxury instead of a 20,000 luxury, Im OK with doing it before paying off the house as long as the other 3 items are funded. And again, saving up first and paying for it in cash. 