Collecting vs saving goals

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Collecting vs saving goals

Postby silvor » Fri Oct 26, 2012 11:53 am

Any collectors here? How do you balance being a collector vs saving goals?

I've collected things since I was a kid. Fortunately or unfortunately, I've sold all my collections over the years and used the money to pay off debt - mortgages, cars, school tuition etc. Thing is now at 41, married and 2 kids, now I have nothing except "piece of mind" I guess.

Here are my financials

1) I save 5% into my 401k and get a 5% match
2) no debt at all - mortgage or anything
3) $140k 401k value
4) just a little emergency fund of $1k but a $100k HELOC for emergencies

My hobbies/collections included: coins, vintage toys, firearms, baseball cards, music memorbilia. It can get expensive. I'd like to begin buying again as I have nothing personally as all my money goes to my family. But I realize I need to start saving more even though we have no debt.

Any ways to balance this out? Any comments are appreciated.

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Re: Collecting vs saving goals

Postby nelson » Fri Oct 26, 2012 12:08 pm

I would increase the emergency fund to 6 months - 1 year worth of expenses. Also try to max out the 401k at the federal maximum each year. Get a Roth IRA and max that out each year. Then go crazy with hobbies, etc...

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Re: Collecting vs saving goals

Postby vanderbilt79 » Fri Oct 26, 2012 4:19 pm

As a fellow collector of baseball cards and memorabila, I have started to challenge myself in my collecting. I narrowed down my collection to more unique items and specific players. Before I too collected a wide variety.

I also give myself a budget for a specified time period. For example, lets say I allow myself $500 for a six month time period. I use that money to pay for my hobby whether it's buying specific items for my personal collection, items to flip, or packs/boxes/cases of a new product. If my budget gets low and I want add funds for another purchase, it forces me to sell items I have. That also forces to decided whether or not I really want to get the next item.
I just want to be something more than the mud in your eyes. I want to be the clay in your hands. - Mineral

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Re: Collecting vs saving goals

Postby stannius » Mon Oct 29, 2012 10:41 am

Collecting is a want, not a need. As collectors of beanie babies, baseball cards, comic books, tulip bulbs, and real estate (j/k) have found out, a collectable item is worth only what someone else will pay for it, and that could change at any moment. So you can NOT consider it as an investment or savings of any kind, nor prioritize it over getting your financial ducks in a row, any more than other hobbies/entertainment activities.

Depending on your financial circumstances, it could make sense to include a line item in your budget for collecting. Then you could make a game out of optimizing your purchases.

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