Hobby budget as % of HHI (household income)

chasingcardart · 08-02-2021, 11:42 AM

Hi, all. New to the forum here and didn't see this particular discussion thread so figured i'd start it.

I'm curious how people think about their hobby budget as a percent of their overall annual compensation. It's hard to compare when you use absolute dollars because some folks make a ton more than others so I figured surveying folks on a percentage basis would at least give us all an idea of how people are thinking about their spend on a normalized basis. I know some general personal finance rules are to spend 50% on needs, 30% on wants, and 20% to savings and investment. Do you guys follow this at all? if you want to provide any additional details/context around your spend habits, feel free! This question mostly applies to normal collectors, not businesses BTW. But if you're also selling cards to fund new card purchases, I'd say the question would apply to your net spend.

For me, my net spend is ~5% of total annual comp. Most of my budget goes to hall of famer/icons/GOATs, either rookie cards or autos. I'll probably speculate about 20% of this budget on prospects (bowman chrome). I don't have a fixed budget right now, but I put most of my disposable income into savings or stocks (or options) first, vacations second, and then down the list I'll spend on cards and golf mostly. Curious to see how others are budgeting!

Update: Thanks everyone for all the great insights. I found the discussion really interesting and actually posted about the findings here: https://chasingcardart.com/how-much-...-on-your-hobby . Definitely seems that perception isn't always reality (at least per the polling) as I kind of expected more people to be spending more on the hobby but seems like folks are generally pretty financially disciplined!

boston12 · 08-02-2021, 11:48 AM

The wife could be snooping. I decline to answer

The Accountant · 08-02-2021, 11:48 AM

If we're talking Hobby strictly, probably 0-10%. But if we're talking buying for resale, over 100%. A lot of wheeling and dealing is required to be successful unless you have the capital to just sit on stuff for a few years.

MoreToppsPlease · 08-02-2021, 12:00 PM

What’s a budget?

Akphillips86 · 08-02-2021, 12:11 PM

I’m a teacher with 4 kids so as you can imagine, I’m dropping some major cash.

In all honesty, during the COVID card explosion I made about 10K from flipping cards on very small investments (big thank you to soccer cards) and ended up with some “house money” to spend on cards. Most of that money literally got spent on my house. I did end up with some stuff leftover and I’m building a little (emphasis on the little) stash to pass on to my kids.

I don’t inject much new money into cards right now. Literally only $100 a month. A lot of times, I just sell cards that have appreciated to buy other cards that I think are better long term holds.

I would just advise people to ONLY use money that is used for discretionary purposes or “fun money”. It keeps the hobby enjoyable and you don’t have to worry about having an anxiety attack if one of your biggest player investments gets injured.

Sent from my iPhone using Tapatalk

no10pin · 08-02-2021, 12:13 PM

Quote:

Originally Posted by boston12

The wife could be snooping. I decline to answer

Stealing from someone on this board many years ago...

My worst fear is that after I die, my wife sells my collection for what I told her I spent on it.

As far as my answer goes, I'd have to say 0-10%, because a lot of what I spend comes from selling other cards to fund something.

NYRE2PECT · 08-02-2021, 12:17 PM

Enough that I should probably form an LLC...

jayjones82 · 08-02-2021, 12:18 PM

0-10% on purely PC items, but even some of those are funded from flipping profits.
On the business side, probably 75%+, but it's a revolving door of funds in/funds out

Flkrsn5 · 08-02-2021, 12:20 PM

I said 0-10%. I use the money I’ve made investing and flipping to pump back into my card funds. I don’t touch my income...no need to honestly as I’m not looking to own an expensive collection.

Hollywood42 · 08-02-2021, 12:26 PM

0-10% should be broken down even further IMO

DaBaddestHic · 08-02-2021, 12:28 PM

0-10%. Me and the wife give each other a set amount each month to spend on whatever we want and I've spent about 40% of that on cards so far this year.

What I want to know now is, where has that other 60% gone? Because it's certainly not in my bank account and I thought that cards were my biggest personal expense... (And no the wife doesn't have access to this account so she hasn't been spending it on clothes

)

LVDan · 08-02-2021, 12:33 PM

Zero. If I don’t sell cards I don’t get to buy cards. It’s pretty cut n dried in our financial spot. Luckily I made a few nice cheap player stashes early on that started this thing off. Without a few lucky early breakouts I woulda been gone long ago.

Sent from my iPhone using Tapatalk

KhalDrogo · 08-02-2021, 12:40 PM

Close to a quarter. But net out of pocket cost in 2020 was under 3%.

dodgerfanjohn · 08-02-2021, 12:45 PM

Haven’t spent more than 1% of my job income on cards since 2018. If I didn’t sell cards or other collectibles to generate money for the hobby, it would probably be 2-3% per year.

premium1981 · 08-02-2021, 12:49 PM

100%

Anything less is not okay.

pewe · 08-02-2021, 01:05 PM

Quote:

Originally Posted by MoreToppsPlease

What’s a budget?

It’s when you hit your credit limit

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TheGZA · 08-02-2021, 01:44 PM

Doesn't matter what % of your income you're spending on pieces of cardboard as long as your family is taken care of. It's like the old gambling adage: don't bet what you can't afford to lose.

Otherwise, have fun!

TheGZA · 08-02-2021, 01:46 PM

Quote:

Originally Posted by TheGZA

Doesn't matter what % of your income you're spending on pieces of cardboard as long as your family is taken care of. It's like the old gambling adage: don't bet what you can't afford to lose.

Otherwise, have fun!

Or even better, instead of perusing through ebay listings or putting cards in penny sleeves all evening, go out for a family walk. There's an automatic win with no downside!

premium1981 · 08-02-2021, 02:17 PM

Quote:

Originally Posted by TheGZA

Or even better, instead of perusing through ebay listings or putting cards in penny sleeves all evening, go out for a family walk. There's an automatic win with no downside!

Nothing wrong with loading up some cards and sleeves into a fanny pack and sleeving them while you are walking with your family. Win-win!

pewe · 08-02-2021, 02:17 PM

Quote:

Originally Posted by premium1981

Nothing wrong with loading up some cards and sleeves into a fanny pack and sleeving them while you are walking with your family. Win-win!

Shared hobby time w/family is the best!!!

Sent from my iPhone using Tapatalk

chasingcardart · 08-02-2021, 02:35 PM

You know you're probably right. I had done 0-10% with the expectation that there would be a greater diversity of responses. Actually surprised to see so many fall in this bucket. A bunch of financially disciplined hobbyists here!

chasingcardart · 08-02-2021, 02:36 PM

Quote:

Originally Posted by Hollywood42

0-10% should be broken down even further IMO

You know you're probably right. I had done 0-10% with the expectation that there would be a greater diversity of responses. Actually surprised to see so many fall in this bucket. A bunch of financially disciplined hobbyists here!

TheGZA · 08-02-2021, 02:46 PM

Quote:

Originally Posted by premium1981

Nothing wrong with loading up some cards and sleeves into a fanny pack and sleeving them while you are walking with your family. Win-win!

I like it. Fanny pack stocked with materials and the balance/touch to not clip corners while sleeving. Boom!

premium1981 · 08-02-2021, 03:04 PM

Quote:

Originally Posted by TheGZA

I like it. Fanny pack stocked with materials and the balance/touch to not clip corners while sleeving. Boom!

PSA is closed. Corners no longer matter. If you peel a corner, just bite it back down with your canines.

premium1981 · 08-02-2021, 03:05 PM

Quote:

Originally Posted by chasingcardart

You know you're probably right. I had done 0-10% with the expectation that there would be a greater diversity of responses. Actually surprised to see so many fall in this bucket. A bunch of financially disciplined hobbyists here!

Most people lie when it comes to finances. Even on anonymous polls. Some even lie to themselves and can't admit the truth to themselves.

View Poll Results: What % of our annual compensation do you spend on the hobby? (not businesses)
0-10%	142	72.45%
10-20%	27	13.78%
20-30%	7	3.57%
30%+	9	4.59%
Cards are a business for me	11	5.61%
Voters: 196. You may not vote on this poll

08-02-2021, 11:42 AM	#1
chasingcardart Member Join Date: Aug 2021 Posts: 13 chasingcardart	Hobby budget as % of HHI (household income) Hi, all. New to the forum here and didn't see this particular discussion thread so figured i'd start it. I'm curious how people think about their hobby budget as a percent of their overall annual compensation. It's hard to compare when you use absolute dollars because some folks make a ton more than others so I figured surveying folks on a percentage basis would at least give us all an idea of how people are thinking about their spend on a normalized basis. I know some general personal finance rules are to spend 50% on needs, 30% on wants, and 20% to savings and investment. Do you guys follow this at all? if you want to provide any additional details/context around your spend habits, feel free! This question mostly applies to normal collectors, not businesses BTW. But if you're also selling cards to fund new card purchases, I'd say the question would apply to your net spend. For me, my net spend is ~5% of total annual comp. Most of my budget goes to hall of famer/icons/GOATs, either rookie cards or autos. I'll probably speculate about 20% of this budget on prospects (bowman chrome). I don't have a fixed budget right now, but I put most of my disposable income into savings or stocks (or options) first, vacations second, and then down the list I'll spend on cards and golf mostly. Curious to see how others are budgeting! Update: Thanks everyone for all the great insights. I found the discussion really interesting and actually posted about the findings here: https://chasingcardart.com/how-much-...-on-your-hobby . Definitely seems that perception isn't always reality (at least per the polling) as I kind of expected more people to be spending more on the hobby but seems like folks are generally pretty financially disciplined! Last edited by chasingcardart; 09-26-2021 at 07:49 AM. Reason: updating

08-02-2021, 11:48 AM	#3
The Accountant Member Join Date: Mar 2016 Location: Pittsburgh Posts: 12,971	If we're talking Hobby strictly, probably 0-10%. But if we're talking buying for resale, over 100%. A lot of wheeling and dealing is required to be successful unless you have the capital to just sit on stuff for a few years. __________________ Buying: Cole Hamels 1/1s

08-02-2021, 12:00 PM	#4
MoreToppsPlease Member Join Date: Dec 2018 Posts: 8,676	What’s a budget? __________________ IRS Tax Tip 2022-57 A hobby is any activity that a person pursues because they enjoy it and with no intention of making a profit. People operate a business with the intention of making a profit.

08-02-2021, 12:18 PM	#8
jayjones82 Member Join Date: Mar 2019 Location: GA to Germany to TX Posts: 3,472	0-10% on purely PC items, but even some of those are funded from flipping profits. On the business side, probably 75%+, but it's a revolving door of funds in/funds out __________________ Always looking at Nolan Ryan, Cal Ripken, Jr, Frank Thomas, Ken Griffey, Jr., Chipper Jones (and most other Braves - but never Tom Glavine), vintage stars, Joe Montana (49er's jersey), Larry Bird, and Pete Maravich

08-02-2021, 11:48 AM	#2
boston12 Member Join Date: Mar 2016 Posts: 3,282	The wife could be snooping. I decline to answer

08-02-2021, 12:11 PM	#5
Akphillips86 Member Join Date: Oct 2019 Posts: 2,960	I’m a teacher with 4 kids so as you can imagine, I’m dropping some major cash. In all honesty, during the COVID card explosion I made about 10K from flipping cards on very small investments (big thank you to soccer cards) and ended up with some “house money” to spend on cards. Most of that money literally got spent on my house. I did end up with some stuff leftover and I’m building a little (emphasis on the little) stash to pass on to my kids. I don’t inject much new money into cards right now. Literally only $100 a month. A lot of times, I just sell cards that have appreciated to buy other cards that I think are better long term holds. I would just advise people to ONLY use money that is used for discretionary purposes or “fun money”. It keeps the hobby enjoyable and you don’t have to worry about having an anxiety attack if one of your biggest player investments gets injured. Sent from my iPhone using Tapatalk

08-02-2021, 12:17 PM	#7
NYRE2PECT Member Join Date: Jul 2019 Location: San Antonio Posts: 8,101	Enough that I should probably form an LLC...

08-02-2021, 12:20 PM	#9
Flkrsn5 Member Join Date: Sep 2012 Location: Middle Georgia Posts: 4,603 Flkrsn5	I said 0-10%. I use the money I’ve made investing and flipping to pump back into my card funds. I don’t touch my income...no need to honestly as I’m not looking to own an expensive collection. __________________ PC: Cal Ripken Jr., Ken Griffey Jr., Mike Trout, Derek Holland & THE Ohio State Buckeyes INTERESTED IN: Prospect Autos

08-02-2021, 12:26 PM	#10
Hollywood42 Member Join Date: Mar 2013 Location: Minnesota Posts: 39,492 Hollywood42	0-10% should be broken down even further IMO __________________ Collecting the Twins All my PC wants/haves available at hollywood42cards.com

08-02-2021, 12:28 PM	#11
DaBaddestHic Member Join Date: May 2011 Location: Chicago Posts: 3,309 DaBaddestHic	0-10%. Me and the wife give each other a set amount each month to spend on whatever we want and I've spent about 40% of that on cards so far this year. What I want to know now is, where has that other 60% gone? Because it's certainly not in my bank account and I thought that cards were my biggest personal expense... (And no the wife doesn't have access to this account so she hasn't been spending it on clothes ) __________________ Supercollecting Carlos Delgado (Always looking - PM me) Want List: https://docs.google.com/document/d/1-9lweoNywcAp-ApoiwSnXGqzQz5-rjoXo3DkOAzXmDY/edit?usp=sharing

08-02-2021, 12:33 PM	#12
LVDan Member Join Date: Jun 2017 Posts: 17,569	Zero. If I don’t sell cards I don’t get to buy cards. It’s pretty cut n dried in our financial spot. Luckily I made a few nice cheap player stashes early on that started this thing off. Without a few lucky early breakouts I woulda been gone long ago. Sent from my iPhone using Tapatalk __________________ So we cheated and we lied and we tested. And we never failed to fail; it was the easiest thing to do.

08-02-2021, 12:40 PM	#13
KhalDrogo Member Join Date: Aug 2017 Posts: 41,298	Close to a quarter. But net out of pocket cost in 2020 was under 3%. __________________ I love PSA!

08-02-2021, 12:45 PM	#14
dodgerfanjohn Member Join Date: Jul 2015 Location: Torrance, CA Posts: 5,351 sternroolz	Haven’t spent more than 1% of my job income on cards since 2018. If I didn’t sell cards or other collectibles to generate money for the hobby, it would probably be 2-3% per year.

08-02-2021, 12:49 PM	#15
premium1981 Member Join Date: Oct 2007 Location: North Carolina Posts: 11,382	100% Anything less is not okay.

08-02-2021, 01:44 PM	#17
TheGZA Member Join Date: Feb 2019 Posts: 1,099	Doesn't matter what % of your income you're spending on pieces of cardboard as long as your family is taken care of. It's like the old gambling adage: don't bet what you can't afford to lose. Otherwise, have fun!

08-02-2021, 02:35 PM	#21
chasingcardart Member Join Date: Aug 2021 Posts: 13 chasingcardart	You know you're probably right. I had done 0-10% with the expectation that there would be a greater diversity of responses. Actually surprised to see so many fall in this bucket. A bunch of financially disciplined hobbyists here!