• Thursday, May 30, 2024
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BusinessDay

Are you spending too much on your hobbies?

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Hobbies are part of how we express our individuality. In the daily grind of life, they’re also a way we can unwind, have some fun, and do the things we most enjoy. Without this outlet, life would be a lot more stressful. You could say that having hobbies is good for your health and well-being.

On the other hand, hobbies can be downright expensive and a huge strain when balancing your budget: a source of financial stress.

Here’s a list of some of the most expensive hobbies in the world: 

Big game hunting, sailing, flying, mountain climbing, cigarette boat racing, hot air ballooning, collecting art and other expensive antiques or memorabilia, drag racing, flying, horseback riding, playing polo, ballroom dancing, tornado chasing, and sky diving

Some of these hobbies can cost millions of dollars a year! It’s important to keep in mind, however, that hobbies should be relative to your lifestyle and income level. Someone who is making several million a year can afford to spend more on their hobbies. What would be an expensive hobby for us might only be consuming 1% of another person’s income.

So, how much should YOU be spending on your hobbies?

The amount will differ for each person. There’s no set percentage of your budget, because each person’s budget is unique. When you organize your budget, you should, of course, prioritize your mortgage, car loans, utilities, necessities, and savings.

If you still have discretionary spending money after your bills are paid and you’ve set aside the recommended 10 percent of your income for savings, by all means spend some or all of it on your hobbies.

Some people allow themselves a particular dollar amount per month to spend as they wish, whether that be for luxuries, entertainment, desired purchases, or hobbies. This is a good method, since it allows you to spend without guilt — while staying within your budget.

Even though hobbies are necessary and healthy, there may be times a particular hobby is taking up too much of your discretionary income or endangering your ability to save money. When deciding whether you need to cut back on or cut out a hobby, here are a few questions to ask yourself.

How much does it cost? 

The first step to evaluating a hobby is to determine exactly how much it’s costing you. Look for hidden expenses such as replacement of gear, membership fees, and fuel. Many times we don’t think we spend as much as we actually do.

Is it hurting your finances?

Once you know how much you’re spending, determine the percentage of your income as relative to other categories of your budget. Are you spending more on your hobby than you’re saving?

How much does it mean to you? Are there other benefits that outweigh the costs?

Even if a hobby is taking up more space in your budget than would normally be healthy, it may simply be important to you. After all, hobbies are closely tied to who we are as individuals, and if we take that away, we may be robbing ourselves of living to the fullest.

Some benefits such as physical health, fitness, mental health, helping people, or giving back to the community make hobbies worth more than they’re costing us, even if we can’t calculate that into dollars and cents.

Is there a way to make it less expensive without sacrificing your enjoyment?

Even though a particular hobby may be well worth the expense, there are usually ways to save money without sacrificing its quality or our enjoyment of it. The amount you’re spending is seldom directly tied to your enjoyment of an activity, so if there’s a way to save money, do so.

Or, is there a way you can turn your hobby into a money-maker? 

Hobbies don’t have to be strictly budget-draining. If it’s something potentially profitable, look for ways to make it pay for itself. You may even be able to start a small business and eventually quit your day job. What better way to enjoy your hobbies than when you can make a living off them?