Do your hobbies cost you an arm and a leg?
Hobbies can give us a sense of liberation from our everyday problems; the satisfaction one derives from pursuing a pleasure, whether it be collecting stamps, banknotes, beer labels, or any of the things people describe as collectibles, boating, sports, auto racing, or whatever.
If you’re going to have a hobby, you really need to make sure it doesn’t cost you more than you can afford and that it’s not at the expense of your retirement fund.
There are ways to keep costs down with your hobby; take whatever you collect. You can list your duplicate items on eBay or other auction sites. It will also give you an estimate of the type of demand that exists for your particular type of collectible.
It’s also important to realize that something is only worth what someone else is willing to pay. If you can’t find a buyer for whatever your collection is, then it’s worth nothing.
However, there are some things that are sentimental, things that may not have any monetary value but are priceless to the family, such as old photographs or family heirlooms.
They may not have cost you anything to acquire, as they may have been passed down through the generations or handed down to you, but that is not the case with many collectibles that are acquired with a passion that can best be described as hoarding.
Unless someone has an unlimited amount of money to spend, all these things must be at the cost of something.
People often run out of money to finance their hobby, such as not owning a car, not contributing to their retirement fund, or not spending money on much-needed home repairs.
A collector who owns a large collection of beer labels, I believe over 30,000, he proudly boasts about it to all who visit. Anyone can guess how much he has spent to acquire this collection, but the sad thing is that you are not contributing to his retirement fund and therefore missing out on government incentives.
The old excuse of “I might die before I retire and someone else get my money” has been used a few times, but then someone else will inherit your collection of beer labels and if something financial comes up, like a big medical bill, it will . he couldn’t afford it, and it’s doubtful he’d be willing to part with his collection even if big money is offered for it.
The same is said of any other activity that is a hobby. The old adage “Pay yourself first” rings true because sooner or later a person who mismanages his finances will eventually find out that he catches up with them.