Where did all that money go ???

[Jim_Z]

There is a line from an old song from my college days that might be appropriate,
"There is a hole in Daddy's arm where all the money goes..."

As a person gets deeper into this hobby, the expenditures accumulate. I am thinking that it might be a good idea to keep some kind of list of tools, materials, machines, etc, purchased and related costs. What tools, book keeping methods, software are being used to keep track of the stuff and money the go into your hobby?

Happy New Year

Jim_Z

and now I am off to finish another order to Speedy Metals. ;^)

 

[chiroone]

Boy, you said a mouthful there. When I first started looking at this hobby about 18 months ago, I was considering in G0705, now I’m finalizing the purchase of the p.m. 833 for over 4K

 

[4ssss]

The better thing to keep track of is how many tools you've bought and only used once, or bought because the price was right, and will only collect dust.

 

[RandyM]

I kinda look at it this way.

I don't keep track of it. It is my hobby and there is no reason that I can think of that I need to record the costs. Either I have the money or I don't. If I don't, and I want something, I just save for it and buy it when I have the money to spend. A hobby can only be justified as a luxury, entertainment, or pleasure, or all of the above. It is my leisure and what I enjoy doing, I am not going to go down the negativity path with money being my excuse. To me it is like keeping track of your other expenses, again, either you have the money or you don't and then it comes down to your priorities. Now, if you are keeping track because it is something you enjoy doing, that is whole different point of view. I say, "do what puts a smile on your face". Just my 2 cents worth, and you get change back.

 

[dtsh]

As a person gets deeper into this hobby, the expenditures accumulate. I am thinking that it might be a good idea to keep some kind of list of tools, materials, machines, etc, purchased and related costs. What tools, book keeping methods, software are being used to keep track of the stuff and money the go into your hobby?

I'll be the first to admit that my process is probably not what most people would do, but it works very well for me.
I use gnucash, no real reason to use it over any other accounting program, but it's free and I like free. I prefer double-entry and similar methods because you can see where the money goes in detail by the categories defined.

I treat my hobbies like businesses, they have budgets and I keep accounts of their income (money I put in, from sales, etc) and expenses. Most of my hobbies lose money and I'm A-OK with that, but they must remain within budget. Big purchases sometimes take months of planning (or years) before the funds are available, but I find it really cuts down on frivolous expenditures. Rarely, a hobby becomes a real business, but when it does it starts up with good processes already in place to make the transition.

 

[RJSakowski]

Hopefully our money is going to a better end than the person in the song. I don't keep track of my expenses for the hobby but I also don't go hog wild with purchasing.

When I think of all the ways that I could be spending money on a hobby, there are a lot of worse ways. I could be going golfing twice a week at $50 a pop, skiing in Colorado for a couple of grand a week, or sitting in a bar drinking myself silly at $5.00 a shot. It is said that a boat is a hole in the water that you pour money into and I am sure you have heard the expression "horse poor". My neighbor sunk $35K into restoring and tricking out a '67 Grand Prix.

A hobby should be about reducing the stresses built up in everyday life. If you can make money while playing with your hobby, more power to you but IMO, when a hobby becomes a business, a lot of the fun of it goes out the window.

I realize that most of us have budgets, whether rigid or a guideline. It doesn't make sense to spend a bundle on some fancy new tool when the kids are looking for a meal or you're wondering how you will afford heat for next month. I am fortunate that I have a decent retirement nest egg that I don't have to nickle and dime purchases for the hobby but I tend to do it anyway. I have a long wish list ranging from few dollar to big ticket items but tend to justify purchases based on need. Fortunately, my frugality reins me in.

 

[Jim_Z]

I'll be the first to admit that my process is probably not what most people would do, but it works very well for me.
I use gnucash, no real reason to use it over any other accounting program, but it's free and I like free. I prefer double-entry and similar methods because you can see where the money goes in detail by the categories defined.

I treat my hobbies like businesses, they have budgets and I keep accounts of their income (money I put in, from sales, etc) and expenses. Most of my hobbies lose money and I'm A-OK with that, but they must remain within budget. Big purchases sometimes take months of planning (or years) before the funds are available, but I find it really cuts down on frivolous expenditures. Rarely, a hobby becomes a real business, but when it does it starts up with good processes already in place to make the transition.

Dtsh

Tnx for the heads up on Gnucash. It might be a useful tool for several things I am working on.

Jim_Z

 

[richl]

I won't track the expenses, I've been thru periods where money was very tight and on the other end of the coin where money was not. When I can afford it I spend more freely, when I can't, I don't. I won't torture myself when money is tighter with a list of expenses I made when I had the money to burn.
I'm probably heading into a tighter period again, so I will be more careful with purchases than I was over the past few years. If I have to, I own many things I could sell in order to make additional purchases

 

[BGHansen]

I don't bother keeping a tally on what I've spent. I do keep track of what I have so I don't impulse buy multiples. I like the mechanical number-tumbler mic's and have 4 sets of 0-3" and a couple of 3-4" ones. Was shopping on eBay a few weeks ago and saw a decent set of 0-3" for $10 starting bid. Held off from bidding but did track the auction to the end ($40 for the 3). I didn't need a 5th set of them, so kept the funds for something else. My wife is really understanding and goes by the motto, "don't worry about it if it doesn't have blond hair or burn gasoline".

That being said, I do have an estimated value on each item. More for my wife's benefit than mine so she doesn't sell my Interapid DTI's for $10 each.

You know your household budget better than anyone. I figure if I buy used in good shape tools or machines at a fair price, they'll hold their value as long as I don't beat on them. Not really spending money, just temporarily exchanging it for something I can use instead of the bankers giving me 1% interest but loaning it out for 10%.

Bruce

 

[markba633csi]

I try not to keep to close an eye on it so that when I need to spend a big chunk it somehow doesn't hurt as much. I know I've been frugal
most of the time so I can spend extra when I have to. I just got outbid on a lathe and kinda wished I had peeled off a couple hundred more.
In the long run I would have forgotten the little extra pain and I'd have the lathe.
Mark