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People often start the year by reviewing their budgets with resolutions to save money and cut back on discretionary spending. But experts say hobbies should not be the first category.
Americans spent an average of $3,458 on entertainment in 2022, according to the U.S. Bureau of Labor Statistics’ latest Consumer Expenditure Report. This broad category includes concert tickets and pets, as well as a variety of other expenses that people consider hobbies.
Costs vary greatly depending on the hobby. For example, according to Bigger Garden, gardening costs an average of $70 per person per year after the initial purchase of supplies, while Stitch Golf estimates the annual cost of golf to be about $2,000 to $2,500. There is.
Experts say spending on activities that bring you joy shouldn’t be left in the rearview mirror. If used wisely, spending money on hobbies can be a good use of money.
“I always tell my clients how important self-care is,” said Rebecca Weiler, a licensed mental health counselor in New York City. “It helps people live longer, it helps people enjoy life more, it gives people something to look forward to.”
According to Weiler, the initial cost of hobbies and interests is often very high. However, there are often beginner-friendly alternatives that you should be aware of before making a big purchase.
Research a new sport or creative outlet that interests you and find the basic tools you need.
Using pickleball as an example, the total cost of playing the sport depends on the type of paddle you choose, athletic shoes and clothing, ball and court rental fees, and tournament fees. Entry-level paddles sell for between $15 and $50, while high-end models can cost upwards of $100.
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You may be able to consider free or low-cost options, such as free trials, discounted introductory fees, or payment plans. You can also borrow gear from friends when trying a new hobby or considering rental options. Some libraries also have hobby-related items available, such as gardening supplies, sporting goods, and musical instruments.
Start small. “You don’t take a class; you sign up for a class,” Weiler says. Before you commit to it financially, make sure you really enjoy the activity.
If you enjoy your hobby, find a financially sustainable way to do it. “Create an effective and realistic budget so you can start hobbies that make you happy,” says J.R. George, senior vice president at Trustco Bank.
However, if you need to borrow money for your hobby, do so with caution. While credit cards and loans can be tools to help you reach certain milestones, it may not be in your best interest to go into debt to fund a new hobby or creative endeavor.
“It almost becomes a forced hobby. I feel like I’m absolutely forced to do it,” George said.
For example, George has seen bank customers fall into this pitfall when they take up boating.
He added that people can get caught up in the mindset of “I have this boat, so I have to use it,” or “I have to take up this hobby because it costs money.”
Another reason to maintain a hobby budget is that such spending may buy you happiness.
Some studies have found that people are happier when they spend money on experiences rather than material goods, and researchers at the University of Cambridge found that people spend more on products that match their personality. found that those who spent more reported higher levels of satisfaction.
“People who work hard and know they have fun outside of work will be better employees,” Weiler said.
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