What is reasonable coin budget for a salary?

2ltdjorn

Surely income dictates disposable income.

but at which salary/income does a coin purchase become extravagant?

$100 coin
$250 coin
$500 coin
$1000 coin
$2500 coin
$5000 coin
$10000 coin
$25000 coin
$50000 coin
$100000 coin

Do you have a coin budget? Do you treat your numismatic items as a portion of your investment portfolio?

Priorities for me:

Emergency Fund
Investment 401K funded up to match
Roth IRA (Brockerage) at the annual limit
Children Education ESA
All other bills, etc
Coins

At what point do coins look silly, if you are not taking care of your future?

silverpop

depends on the person, their job and what they are after

I'm a collector not a investor

yeah I have a budget for coins a small one

LindeDad

Ask the wife. None is fine in most cases.

TopographicOceans

You have excellent priorities (except "other bills" should be a the top of the list, since if you don't pay your rent or electric bill you'll be homeless or sitting in the dark)

I think a coin collection should be based on your net worth outside of your residence, and a small percentage of that.

Unless your a dealer or an expert, coins should be a hobby and not an investment.

Coin collecting is fun and you can also make some money, but it should be treated as a hobby you enjoy and not a method to try and fund your retirement.
People spend a reasonable amount of money on hobbies as part of enjoying life and coins should be done the same way.

Jinx86

I have my hobby coins and my investment coins. My hobby side anything above $500 is scrutinized quite hard. On the investment side coins range from $500 to $5000, these are well researched and well bought, typically for long term holdings.

TwoSides2aCoin

A salary doesn't allow for a coin budget. A budget alone does that. And for many , the discretionary money that's budgeted, goes to other forms of entertainment which leaves many without opportunity.

Walkerfan

<< <i> On the investment side coins range from $500 to $5000, these are well researched and well bought, typically for long term holdings. >>





Although my max would be around $15K and not $5K.

Unknown

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Cougar1978

In this order you should do this:

1. Build a bank savings account and pay off debt.
2. If coins contribute to you portfolio. Be advised what you can liquidate it for in an emergency. Get some experience selling on ebay. If your buying coins you need to learn how to sell them and what the market will bring (which a lot of times is way less than price guide prices).
3. If you spend money on travel / entertainment, etc. any chance to contribute those funds to the above is forever gone. Learn to say no.
4. Be Advised any career opportunity can end. If your over 55, intensify your contribution to savings acct and any 401K. Be prepared for the possibility of your job ending and possibly your career (age bias).

Any coin budget should be based on discretionary income. Only you can decide that. Make number one your priority. If you see that coin or spending for some other hobby is resulting in credit card debt, low bank account stop spending on that until solvency restored. Otherwise your setting yourself up for a life that can become a living hell.

brg5658

I have a hard time taking financial advice from any of the posters in this thread who don't know the difference between "your" and "you're".

drei3ree

For 99% of people who are buyers of collectible coins and currency, it'd likely be in their financial best interest to treat it as a hobby. For all but the extremely talented and wealthy 1%, "investing" in coins is similar to a trip to the casino.

The best advice I ever heard was, "Buy what you like and can afford to lose."

Kove

<< <i>I have a hard time taking financial advice from any of the posters in this thread who don't know the difference between "your" and "you're". >>



Yes, grammar is so important for numismatic and financial advice. I judge all of my advisors by their proper use of "who vs. whom."

ricko

When all necessary expenses are taken care of, what is left is usually termed 'discretionary' funds.... I alot a portion of that to coins... but of course I must also consider my other hobbies. Fortunately, they are all well funded. Cheers, RickO

JCMhouston

I thought the emergency fund was for coins, you know, in case something you really need comes up at an inopportune time.

RYK

Net worth divided by square root of age minus ten times salary minus current liabilities minus one fifth times future obligations calculated quarterly equals annual coin budget.

(If the number is negative, you should be selling your coin collection, not adding to it. 😟 )

Boosibri

If you have to ask you are probably already spending too much

TheRaven

Your salary is one factor only.

My pay is higher then a few years ago but now with a house, wife and 2 kids by extra cash is much lower.

Budget is what I can scrap up and go to the show with each month.

epcjimi1

<< <i>
At what point do coins look silly, if you are not taking care of your future? >>




If you are not taking care of your future, than coins look pretty silly. MHO.

Unknown

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epcjimi1

<< <i>

<< <i>If you are not taking care of your future, than coins look pretty silly. MHO. >>



If you are not taking care of your future, then YOU look pretty silly, just my two cents. Forget the coins. >>



Whatever.

Believe it or not - I'm not insane in the membrane. Crazy.

TPRC

What's a budget?

COALPORTER

I wouldn't spend more than one weeks pay for a coin.

DaveG

My philosophy is to only buy coins with my "mad money" (whatever's leftover after paying all the bills and saving/investing for the future).

I don't want to have to liquidate coins in a hurry to fix the roof or pay a medical bill, etc.

BryceM

No two people have the same needs or desires. Do it your way.

Ain't Liberty a great thing?

sparky64

<< <i>No two people have the same needs or desires. Do it your way.

Ain't Liberty a great thing? >>


Amen!

Nap

<< <i>Surely income dictates disposable income. >>



I would say expenses have much more importance than salary.

When I was single, without a mortgage, without a kid, I had more disposable income, even with a smaller salary.

ranshdow

<< <i>If you have to ask you are probably already spending too much >>



I tend to agree with this. If you're spending enough to have triggered your concern, you probably are spending too much.

To put that in numeric terms it's probably in the neighborhood of >10% of net worth.

pennyannie

<< <i>No two people have the same needs or desires. Do it your way.

Ain't Liberty a great thing? >>



Plus 1, if I had it to do over again I would play a lot more and work less.

I have never had a budget and do not plan to have one anytime soon.

jessewvu

I don't add too many coins to my collection nowadays so I guess the budget is 0. However, I just bought a goodly amount of Dan Carrs coins this past week after getting back from Japan and checking his inventory.

I'd say spend less than 2% of your salary on coins until you retire or have saved a specific amount to get something you want. Living debt free is worth more than a coin collection to me.

OldIndianNutKase

I don't think that salary is the best gauge of coin purchases. Even if you are making a lot of money, you should not budget purchases of coins necessarily. I tend to buy high grade coins as a diversion to money just sitting in my bank account, and coins also provide positive motivation to liquidate "old" inventory in my business as the coins will be more fungible if I need the cash. I did not get to the point where I am today by making periodic investments in coins. Just find coins that you like and don't stretch your responsibilities and enjoy what you have now and dream about your future. There will come the time where coins will not be a budget consideration.

OINK

SmEagle1795

To met, budget = forced spending. Coins shouldn't ever be something you have to buy at a certain point; it should be a serendipitous occasion when the timing and coin makes sense.

As for the ratio of net worth spent on coins, this is purely dependent on personal preference/situation. I know some people who have the vast majority of their net worth in coins but this doesn't represent frivolity, rather, they're able to comfortably live on the remainder. Once "worst case" income and expenses are understood, the portion of freely available funds able to be allocated to coins/hobbies/travel/etc. should be easy to derive.

This is particularly true at the highest end, and explains why many extremely wealthy people can have extremely valuable collections if that represents their passion. Relatively speaking, a much smaller portion of their net worth is required to live comfortably (assuming a non-rockstar lifestyle).

DMWJR

<< <i>#1 - Bills (50%+)
#2 - 401k (14%)
#3 - Roth, funded by ESPP (10% held out of roth for 12 months in case of emergencies)
#4 - Entertainment and coins. (Remainder)

I dont really have a savings account per se, I pay my unexpected major expenses with CC's then sell whatever crap I've got laying around to cover the expense.

I spend about $1k a month, but I also sell a couple grand every few months, I'd guess my annual net expenditure on coins is around $2,500-$3k after profits. >>





Entertainment and coins should always be in the same bucket whatever your earnings level is.

jdimmick

all I know is that I spend more than I make in a years time.