Budgeting for Your Next Passion: How to Fund a New Hobby Without Sacrificing Your Goals

Budgeting for a new hobby can add real value to your life, especially if it’s something you’re passionate about. Whether it’s taking up sailing, exploring the world, or improving your golf game, pursuing your interests can be fulfilling. But without proper budgeting, costs can add up and derail other financial goals. Before diving in, ask yourself two important questions:

• What do I hope to gain from this experience?
• How can I plan for it financially?

A CERTIFIED FINANCIAL PLANNER® professional can help you map out a strategy to ensure your passion fits your broader financial goals.

Understanding the Costs

When budgeting for a new activity, expect two main types of expenses:

• Upfront costs: Examples include certification or equipment. Scuba diving, for instance, can run from $500 to $900 just to get certified.
• Ongoing expenses: Monthly fees, lessons, or maintenance. For Pilates, this could mean studio subscriptions; for boating, it’s fuel, docking, and maintenance.

Also, consider the social benefits. Say you join a golf club — you may gain access to tournaments, events, and a like-minded community, all of which can be incredibly rewarding.

Budgeting for Travel: Explore the World Without Breaking the Bank

Whether you are raising a family or heading into retirement, travel can be one of life’s greatest pleasures. Here are a few ways to budget wisely:

• Set a realistic budget based on your destination, trip length, and activities.
• Open a travel savings account and contribute monthly to grow your travel fund.
• Use credit card rewards, such as points or miles, to reduce your out-of-pocket costs.
• Balance luxury and affordability by cutting back in some areas (e.g., flying economy) to splurge elsewhere (e.g., private tours).
• Consider travel insurance to protect against cancellations or emergencies.

Boating: The True Costs of Ownership and Maintenance

If you’ve spent time out on the open water, you know there’s nothing quite like boating. But you’ll want to plan for both upfront and recurring costs.

• Initial purchase: You can expect to spend anywhere from $10,000 to $60,000 for a 20-foot vessel, or more if you opt for a sailboat or luxury yacht.
• Ongoing costs: These include docking, fuel, maintenance, insurance, and possibly hiring a crew if you plan on entertaining business associates or friends.

If full ownership doesn’t fit your budget, you might consider alternatives such as fractional ownership, rentals, or boat clubs.

Golfing: Public Courses Versus Private Country Clubs

Golf has a reputation for being an expensive hobby, but it doesn’t have to be. It all depends on how you approach it.

• Public courses typically have lower costs and more accessibility. The average fee to play 18 rounds at a public course is roughly $37, according to the National Golf Foundation.
• Private country clubs can range anywhere from $75 to $300 per round, plus membership fees. Resort courses can cost up to $500, but the exclusivity and perks may be worth it.
• Equipment costs add up, too: Golf clubs, clothing, and lessons should be factored in.

Think about what you’re hoping to get out of the game: Is it casual recreation, or are you looking for social networking and community? That can guide your decision on how much to spend.

Financial Strategies to Support Your Passion Without Sacrificing Your Goals

If you’re wondering how to fund a new hobby, consider straightforward ways to get started.

• Create a dedicated hobby fund: Automate your savings to prioritize your passions and make them a centerpiece of your overall financial plan.
• Avoid high-interest debt: A strong monthly budget accounts for essentials, goals and discretionary spending. If you find yourself leaning on credit cards, it might be time to adjust.
• Work with a CFP® professional: They can help evaluate your budget, then consider your short- and long-term financial goals. Together, you can create a plan that’s built for you.

Budgeting for a new hobby should bring joy, not financial stress. With some intentional planning, you can enjoy activities you love while also supporting your financial goals.