Canadian Finance Blog

Posted: 03 Nov 2010 02:00 AM PDT

Hobbies are an essential part of everyone’s life. As one of the world’s greatest psychotics once said, “All work and no play make Jack a dull boy”. Likewise, spending the entirety of one’s time simply working, or worrying about money, will not only make you dull, it very well may make you go crazy. Unfortunately, not all hobbies are cost-free, so they may come at the cost of a small section of your budget. However, most people think that spending money on hobbies or entertainment is well worth the expense, and they are probably right. If your budget doesn’t quite have the room for expensive hobbies, however, you have a couple of options.

Choose Wisely

Be selective about your hobby choices. Chances are, there are more than one hobby that you are interested in. So if you have the choice between knitting and collecting gold coins, go for the knitting. This is the first choice that you have towards saving money, and while it might be the one that saves you the most money, it might also be the one that is the most difficult. Sadly, a lot of the time we don’t really feel like we have a choice towards what we like or dislike, and we just feel like we need to indulge ourselves in this one specific area. Don’t fool yourself though, while you might feel like you absolutely have to become the world’s most exquisite art collector, be realistic in your choice of hobbies. In addition, watch carefully what your friends choose for hobbies as well, as their budgets may be different and you may be unable to financially afford being their jet skiing buddy.

Smart Spending

Once you have decided on a hobby, or even if you have one that you’ve been involved in for a couple of years, be careful in how you spend money on your hobby. I think one of the biggest faults that I see happening on a regular basis is that people overspend on their budget. It is not that they just cannot control themselves, and that they can’t stop purchasing stamps or baking cookies, it is that they feel that they need the absolute best equipment in order to perform their hobby to their standard. Take for example a musical instrument. If you want to become a guitar player, but have no idea how to play a guitar, you do not need a vintage Les Paul in order to strum a D chord. While that may seem obvious, it is shocking how many hobbyist feel that they need the highest priced most expensive professional series of gear in order to fillet a fish or frag a foe online. While this problem isn’t as prevalent for the novice, when you become an adequate amateur at your hobby of choice, you often feel that in order to reach “the next level” of skill you need better quality instrumentation, tools, or even professional level training. Don’t fall for this trap. Use your old equipment and fight the urge to buy the newest and latest gizmo, as it is far more likely that your skill level or product will continue to improve even without the expensive purchases bolstering it.

Monetization

Beyond everything else that you can do to save money while having fun with your hobby, don’t forget about the simple fact that you can often turn your hobby into a money making hobby, as opposed to a money losing hobby. While it may be hard to sell your snowboarding skills, you may be able to find part time work as an instructor. If you enjoy baking, you can sell your treats at a local farmer’s market. If you knit or crotchet, you can peddle your wares online at stores like etsy.com. If your passion doesn’t result in a skill or product that is marketable, you can always start a blog about it, and find like minded friends online to share your interest with. After you’ve been blogging for awhile, you could have the option of incorporating ads onto your site and perhaps make a little money that way. If you’re truly entrepreneurial, you might even be able to become a consultant in your field, offering advice to budding hobbyists or professionals.

No matter which way you choose to go, remember to always have room in your budget for your hobbies. While they may seem silly, and while you may want to hide the fact that you sew homemade superhero costumes to yourself, hobbies are worth spending money and time on. What hobbies do you enjoy?

Making Smart Hobby Decisions originally appeared on Canadian Finance Blog on November 3, 2010.