Finance and Hobbies

Do your hobbies cost you an arm and a leg?
Hobbies can give us a sense of release from our everyday problems; the satisfaction one gets from pursuing a pleasure, whether it be collecting stamps, bank notes, beer labels, or any of the things people describe as collectibles, sailing, sports, auto racing, or whatever.
If you’re going to have a hobby, you really need to make sure it’s not costing you more than you can afford and 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.
It may not have cost you anything to acquire as they may have been passed down from generation to generation or given 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 of these things must come at the cost of something.
People often run out of money to finance their hobby, such as not having 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, over 30,000 I think, proudly boasts about it to all who visit. Anyone can guess how much he has spent to acquire this collection, but the saddest part is that it is 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 gets my money” has been used a few times, but then someone else will inherit your beer label collection and if something financial comes up, like a big medical bill, they will. he couldn’t afford it, and it’s doubtful he’d be willing to part with his collection even if a lot of money was offered for it.
The same is said of any other activity that is a hobby. The old saying “Pay yourself first” rings true because sooner or later a person who mismanages his finances will eventually find that he catches up with them.