BlogBudgetingHow much is too much?

October 20, 2016by Women with Cents

[cs_content][cs_section parallax=”false” style=”margin: 0px;padding: 0 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]This week I tackle another great question from the community:

“Hi Tash, I’m wondering – how much is too much to be spending on a hobby?”

Let me start by saying that life is there to be enjoyed! I believe we should make room for more fun in our lives, especially because many of us spend what feels like most of our time just working and paying the bills. Hobbies can also be extremely beneficial for our health and wellbeing. They allow us to release stress and switch off for a while.

So with those sentiments in mind, how much you spend really comes down to your personal circumstances – your income, your outgoings, your debts and your savings. But here are some handy tips to help you decide whether spending money on a hobby is doable.[/cs_text][/cs_column][/cs_row][/cs_section][cs_section bg_color=”#252525″ parallax=”false” style=”margin: 0px;padding: 0 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h2″ looks_like=”h3″ accent=”false”]Factors to consider[/x_custom_headline][cs_text style=”color:#ffffff;”]When considering taking up a hobby, consider these 4 questions:

  1. Are there fees involved? And are they one-off (e.g. buying equipment) or ongoing?
  2. Would you need to rely on a personal loan or credit card to afford it?
  3. Do you already have some credit card debt?
  4. Do you struggle to save money towards an emergency fund each pay?
If you answered yes to two or more questions, then you may not be able to afford that hobby right now. In fact, any benefit you gain from it will likely be negated by the stress from the financial pressure you are under as a result!

[/cs_text][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 0 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h2″ looks_like=”h3″ accent=”false”]How to make it happen[/x_custom_headline][cs_text class=”cs-ta-left”]If affordability is an issue, there are a few things you can do to make some financial space for your hobby:

Think outside the square
Ask yourself, what is it about that particular hobby that you enjoy? Is there a similar hobby that would cost less but give you a similar outcome? Or is there a way to cut costs for this hobby, such as buying equipment second hand?

To give you an example, I am and always have been a dancer at heart. But like so many other hobbies, it’s a very expensive one. The clothing, the shoes, the lessons, the competition fees – it all adds up! So, while I was at university and money was tight, I volunteered as a dance teacher instead. It meant I still got to enjoy doing what I loved without the added expense. Sometimes I even made money from my hobby!

Brainstorm
Look for any other areas in your budget where you could cut costs to make room for your hobby. Perhaps you could do a big clean out of your wardrobe, earn some casual cash or find better deals on your bills. For more ideas on saving money read my blog here.

Re-jig your priorities
If all else fails, you may have to prioritise your spending. Ask yourself, which goal is more important – your hobby or something else? For example, if your main goal is to save for a home deposit and taking up an expensive hobby right now would eat into your ability to do that, then you might need to revisit taking up that hobby. Alternatively, if you have been spending money on going to the gym and you’d really rather take up dancing instead, then maybe you can redirect your gym money to your dance fund instead of paying for both.

Happy hobbying![/cs_text][/cs_column][/cs_row][/cs_section][cs_section bg_color=”rgb(37, 37, 37)” parallax=”false” style=”margin: 0px;padding: 0 0px 25px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h2″ looks_like=”h3″ accent=”false”]Submit a Question![/x_custom_headline][cs_text]Have a finance question you’d like answered? Why not drop me a line! Each week I would love to answer a question from the community. Click below to get in touch.[/cs_text][x_button size=”global” block=”false” circle=”false” icon_only=”false” href=”mailto:tash@womenwithcents.com.au” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””]ASK TASH[/x_button][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 25px 0px 0;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_image type=”none” src=”http://www.womenwithcents.com.au/wp-content/uploads/2016/07/Email-photo.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text style=”font-size:12px;”]The information provided by Women with Cents is general in nature. It doesn’t take into account your objectives, personal financial situation or needs. Think of it as educational material in which to help you make more-informed decisions. We recommend you obtain financial, tax and credit advice specific to your situation before making any investments or financial decisions.

Sova Financial Pty Ltd Trading as Women with Cents. ABN 71 163 435 836 | Sova Financial is an authorised Credit Representative Number 443432 of Finsure Finance & Insurance Pty Ltd, ACL 384704, ABN 72 068 153 926[/cs_text][/cs_column][/cs_row][/cs_section][/cs_content]

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The information provided by Women with Cents is general in nature. It doesn’t take into account your objectives, personal financial situation or needs. Think of it as educational material that helps you make more-informed decisions. We recommend you obtain financial, tax and credit advice specific to your situation before making any investment or financial decisions.

Sova Financial Pty Ltd Trading as Women with Cents (ABN 71 163 435 836) | Sova Financial is an authorised Credit Representative (443432) of Finsure Finance & Insurance Pty Ltd (ACL 384704, ABN 72 068 153 926). Liability limited by a scheme approved under Professional Standards Legislation.