So you’ve taken up a new hobby. Fantastic!
But are you finding it’s more expensive than you thought it would be? Will you need better gear to take your hobby to the next level? If so, you may want to consider taking out a personal loan.
We know this sounds a little bit scary, as the idea of being in debt for a fun activity might make some people’s spine’s tingle.
Of course, we don’t recommend taking out a personal loan for something that’s beyond your financial ability to pay back. For example, if you’re making an income of $50,000 a year, it’s probably not feasible to invest in a $70,000 piece of equipment.
For lesser expensive hobbies, you may find a personal loan can help you enjoy life just a little bit more. Read on for more information.
Using a Personal Loan for Hobby Gear
Playing music and sports/exercise rank in the top hobbies for Americans. While some of these things, like walking or running, can be free, any musician will tell you that keeping up with equipment is costly. If you want to keep your piano tuned, or to invest in a new one, you’ll probably need more money than you have right now.
If you plan to use a personal loan for hobby gear, there are a few simple rules you should follow. As we addressed originally in the introduction, don’t bite off more than you can chew financially. Instead, go for cheaper or second-hand equipment before you make the commitment.
As you build your skill set, and if you end up making any money in it, you may want to invest in better equipment.
Read on for a few ground rules for taking out a personal loan for a hobby.
Don’t Jump In with Both Feet and See How Long Your Hobby Lasts
So, you’ve decided to take up guitar. You’re playing your hands off, watching YouTube tutorials on how to play your favorite tunes and making your neighbors complain. Maybe you’re also going to lessons a couple of times a week and jamming with your friends.
But that doesn’t mean you need to invest in state-of-the-art gear. Do you really need that expensive guitar you’ve been lusting for online?
Chances are, no, you don’t. Instead, buy cheaper equipment first and see how long you’ll stick to it. If you’ve been playing a while and don’t see yourself quitting or getting too busy, then invest in something a bit better.
Plus, if you’re just jamming with your friends or learning the basics, there isn’t much need for something fancy. Wait until the time calls for it before buying something that’s just out of your reach.
Exercise Caution When Buying New Gear for Children’s Hobbies
You remember what it was like to be a kid. One day you wanted to be an astronaut. The next day a teacher. Then a ballerina slash chef slash veterinarian.
Kids go through phases where they’re interested in different hobbies. They may beg you for tap dancing lessons and then forget about them in six months time. Or, all of the kids in their class might be taking horseback riding lessons, and they want to fit in.
But after a while, it’s shine wears off and they’ve decided to try their hand at drawing instead and want you to buy all new art supplies.
Children’s hobbies can be expensive, especially if your child competes with them. But you should exercise the same caution you would with yourself. Don’t buy anything they don’t need, and don’t buy it too soon.
If they start ballet, for example, buy the most inexpensive ballet shoes and gear on the market. If they prove they really have a passion for ballet and want to take it up a notch, you can then consider a personal loan.
In this way, it’s a reward for their stick-to-it-tive-ness as well as saving you the hassle of monthly repayment plans.
Work Out a Payment Plan You Can Afford
If you choose to take out a personal loan for a hobby, take out a payment plan that actually works for you. Don’t think, “In three month’s time I’ll be able to afford that.” If you can’t afford the repayment terms now, you shouldn’t take out the loan.
Only Take Out What You Need
Want a new pair of skis for your newfound love of the slopes? Great. Look for a personal loan with low-interest and terms that work for you.
But don’t purchase a brand new pair of skis, and a jacket and boots, and lift tickets if you don’t need all of those things. Don’t just use the extra money to play with. Be strict with yourself and take out what you need and that’s it.
Using a Personal Loan for a Hobby
Whenever you take out a personal loan, you need to weigh the pros and cons and consider if the loan is worth out. Don’t ever bite off more than you can chew, or you’ll find yourself with more debt than you imagined. Your new hobby won’t seem quite as fun any longer.
For more information on taking out loans, visit our website. We have information on everything from personal loans to credit cards to how to rebuild your credit. Check out our education center for more.
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