TER General Board
Minimum Cash Reserve for Hobbying
I ask this question, because I'm baffled that some gents here say they use their credit card and now I see someone dipping into his 401K for a Vegas trip splurge.
Just curious and you can use an alias if you want, those of you who are sane enough to use cash for hobbying with a frequency of 1x - 4X a month, What kind of "Minimum cash reserve" do you feel you should have in your bank to feel safe you're actually spending extra money and not putting you in danger of overspending, especially if you have a family.
Now just a clarification, I'm not asking how much money you have in your bank. I'm asking how much minimum cash reserve made you comfortable to be in the hobby - something of a mental thing.
I won't hobby unless
1. I have positive class flow every month.
2. I have my emergency fund of at least 50K in the bank.
I always invest money for my future on a regular basis.
By the way can I borrow $500 for a date this Monday.
For me anyway. Those who don't plan or think the world will end in 2012 do whatever, but I have seen a financial planner and come up with a number for retirement, like in that commercial. That is my priority, not whoreing it up so to speak. So that is my recommendation.
I look at it a bit differently. I squirel money away whenever I can and keep it in a safe spot...I regularly skim about 10-20% from bonuses, gambling winnings, expenses reimbursement, etc...and that is my hobby money. Your basic premise supposes a very dangerous precedent, that you co-mingle hobby money with "house" money. I think by disciplining myself to set a fund aside and exclusively use that I reduce the risk of taking food off the table at home. It is symantics to a certain extent but somehow I think its different if I stash $1500 out of a $10000 bonues than drawing directly from house money. Of course the reality is by skimming I am taking from house money but I think you get the difference.
So, the level in that fund does dictate my hobbying since when its gone its gone.
I only hobby with accumulated excesses from cash spending money. Typically this allows me to play once a month but that's an average. If I'm pinched one month, no play. If I'm otherwise busy, no problem... I may get a rare vacation month where I get to play twice.
I never take money from savings for hobby.
I agree. You have a separate fund for hobbying- money that comes from extra sources, such as gifts, dividends, bonuses, money recieved beyond your standard income. You don't touch your regular savings or living expenses.
All of my hobby money comes from an offshore account funded with royalties from books I wrote in the mid-late 1980's and early 1990's under pseudonyms.
All of those books were yanked from the market immediately after 9/11 because the subject matter was deemed too dangerous with all the terrorists we have running around.
I would never, I mean never, fund hobbying through debt or from retirement funds. To me, that just seems crazy. It's a damned HOBBY not a necessity.
Sweet baby Jesus, I don't want anyone breaking into his emergency savings or retirement fund to see me. I'm awesome, but I'm not THAT awesome.
Everyone is responsible for their own financial decisions, but I don't make luxury purchases if I'm without a financial safety net, and I don't want my clients to either.
Well this question comes at an interesting time for me. I've spent all my hobby money, took a few years, but yeah, except for the 600 cash left I have on hand, I am going to have to root from the sidelines soon. Had a great date today, and one planned for monday. And think I will try to get in one more with the lady I saw today once more, but then that's it!
But I didn't know you could tap into your 401k early and use it to meet cool chicks in Vegas either until today. Think I might look into that. Just kidding.
Really? You'll only start to Hobby when you have $1 million cash? LOL.
A million bucks isn't really that much in today's economy.
I know many of us have already gone through a lot more than that through divorce.
For someone who has never been wiped out through divorce or for other reasons, saving a few thousand bucks a year and investing it wisely for 20-30 years creates a nice little nest egg well over a million bucks, and anyone considering retirement better have well over a million bucks if they plan on living past 70.
My question was - how much minimum do you need to "start" to hobby. I did not ask how much money one has now! If your reading comprehension is too low, don't answer.
Yes, 1 million is not much. I ain't retiring with only 1 million. That's too small. But again, that's not the question being asked.
You are obviously a broke dick who can't imagine that someone might condsider quitting the hobby if his cash reserves ever dipped "below" a million.
Reading comprehension my fucking ass, you must need some "writing comprhension", no wonder you are a fucking broke dick.
Your OP is still there for all to see, show me where you said "start" to hobby, or STFU. I hate fucking stupid people, especially ones too dumb to realize the proof is there for all to see.
BTW if you didn't already know, you can't modify a post made under an alias, so you don't have the option of editing your post after being called out on it dumbass.
I have a rule of 80% for responsibilities and future, 20% for fun. I have been in the fortunate circumstance of generating more excess cash over a period of years, but never have I broken my rule.
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