How To Save For Hobbies
1. Pay Yourself First (Automated Savings)
- Set up an automatic transfer from your checking account to a savings account every time you get paid.
- This makes saving easier because you prioritize it before spending on anything else.
- Example: Transfer 10%-20% of your paycheck into a separate savings account.
2. Dedicated Savings Accounts
- Open separate accounts specifically for different goals (big purchases, hobbies, emergency funds).
- This helps keep your hobby savings separate from other money and avoids accidental spending.
- Many banks or apps allow you to create “sub-accounts” or “buckets” for each goal.
3. Budget with the 50/30/20 Rule
- Allocate 50% of your income for needs (rent, utilities), 30% for wants (hobbies, entertainment), and 20% for savings and debt repayment.
- If you want to spend more on hobbies, try adjusting the 30% section.
4. Use Windfalls for Hobbies
- If you get a bonus, tax refund, or unexpected income, consider putting some of it directly toward your hobby fund or big purchase.
- Save half, spend half is a common rule. You save part of the windfall but still enjoy a reward for your efforts.
5. Use a “Sinking Fund”
- A sinking fund is a savings account for a specific future expense, like a new car or a big hobby purchase.
- Divide the total cost by how many months you want to save for, and set that aside each month.
Example: Want a $3,000 gun? Save $250/month for 12 months.
6. Side Hustles
- Find small ways to earn extra income outside your regular job, and dedicate all or most of that to your hobby savings.
- Sell old gear, do freelance work, or pick up odd jobs and add those earnings to your hobby fund.
7. Use the Envelope System (for Cash Spenders)
- If you prefer using cash, create an envelope for each goal or hobby. Every paycheck, put a set amount of cash into the envelope.
- This works well if you find physical money easier to manage and less tempting to spend.
8. Try “No Spend” Challenges
- Cut back for a set period (a month or a few weeks) by avoiding unnecessary purchases, and use the savings for your bigger goals.
- You’d be surprised how much extra you can save with a short “no-spend” challenge.
9. Make Your Savings Grow
- Instead of keeping your hobby savings in a regular account, consider using high-yield savings accounts (HYSA) or short-term investments (like a CD or bond fund) so your money earns interest as it sits.
10. Track Your Progress
- Use apps like YNAB (You Need a Budget) or Mint to track savings progress for each goal.
- Seeing your progress grow can keep you motivated to stick to your plan.
Examples:
- Cars: If you want to buy a new car or upgrade, you might set a goal of saving $5,000 in a year. You’d need to put aside around $417/month. Automating this into a separate “car fund” account could help.
- Guns: For a specific model you want, say it’s $1,500, you could start with a sinking fund. Save $150/month for 10 months.
Final Tips:
- Start small if needed. Even $50 or $100/month adds up quickly.
- Review your expenses regularly to find areas where you can cut back and reallocate toward savings goals.
- Don’t forget about sales and discounts for hobbies—sometimes waiting for the right time to buy can save you money in the long run.