Why You Need an Inexpensive Hobby (or a few)
One of the biggest problems that people tend to have with their personal finances is lifestyle inflation. Put simply, lifestyle inflation is when someone spends more money as they make more money. Some types of lifestyle inflation are good and expected, such as:
Getting more than just ramen noodles at the grocery store, or
Moving into a slightly larger house to accommodate a growing family
But usually, lifestyle inflation is viewed in a negative light in the personal finance community because it takes people off the road of financial stability and brings them closer to living paycheck to paycheck. While lifestyle inflation in general can be a blog topic by itself, today I'm going to talk about discretionary spending related to hobbies specifically.
Everyone has things that they are interested in outside of their working life. It could be sports, collecting things, or spending time with the people they care about. It's important to understand that no matter what your hobbies are, they will come with a cost because you spend your time and money on them. Ideally, you should be able to balance the enjoyment and fulfillment that you get from your hobbies with the time and financial costs associated with them. If all of your hobbies are expensive, it's probably a matter of time before you need to give some of them up to make sure you can afford the rest. This is why it's so important to have a variety of hobbies, and more importantly, some inexpensive ones that you can rely on.
What Makes a Good Inexpensive Hobby?
An inexpensive hobby is one that has a low cost of entry. A good inexpensive hobby is one where you derive a lot of fulfillment and can sustain for a long period of time, even if your income changes. Many people fall into the trap of spending more on their hobbies as they make more money as a result of lifestyle inflation. Some examples of relatively inexpensive hobbies include:
Fitness and Exercise: a $40 gym membership and spending some time on YouTube can keep you engaged and working towards goals that will help your physical and mental health.
Computer games: as long as you have a decent computer, there are plenty of free to play online games and communities that can keep you interested and entertained for many hours.
Personal development: learning skills from watching YouTube videos, reading books, or enrolling in cheap courses and learning platforms is a great way to spend your time and a bit of money that has the potential to yield a great return on your investment.
Something that it's important to know about these examples is that each of them have a high potential time investment and a relatively lower cost. You can potentially keep yourself occupied and fulfilled with these three hobbies for less than $100 a month (assuming you already have an internet connection and a computer).
Conversely, more expensive hobbies tend to cost money every time you want to participate. Things like going out to the movies with friends or overnight road trips can be good in moderation, but the associated costs can add up over time. By having a good mix of inexpensive hobbies (that can take up your time but not your money), and some more expensive ones (that are worth the cost to you), you can achieve a balance that leaves you properly fulfilled and financially stable.
What Should I Do with This Information?
By now, hopefully you understand that it's important to have an inexpensive hobby you can enjoy no matter how much money you have. With everything you've learned here, I challenge you to take inventory of your hobbies and see how much time and money you spend on them every month. If you find that your hobbies are taking too much of your money and not enough of your time, then consider picking a new hobby up to fill that space. By doing so, you will be able to save money in the long run by keeping yourself busier and more fulfilled with your inexpensive hobbies.