Does your collection have a salary cap?

[Doug]

I was listening to Dave Ramsey's radio show (a financial guy if you haven't heard of him) a few weeks ago and a caller asked him how much was reasonable to have invested in collectibles. His answer was no more than 10% of a year's take home pay, so for example if you take home $35k a year, you shouldn't have more than $3500 tied up in your collection. It reminded me of a teacher I had that collected low grade 1933 Goudey commons and he had a strict maximum of $50 per card. I also have another friend that sticks to the total value limit, but doesn't have a specific limit per card. If he hits his limit he has to sell something of equal or greater value before he buys a different card. This got me to wondering, does anyone on here go by either of these methods or a combination of the two? That and it seemed like an interesting idea for a poll...

[hennessey16]

I really didnt have a limit on any single card, but i missed several on e-bay that went to high. Bided my time till I felt I got a good price on my card I was looking for. Also I'm finished with my goal that I set out in aug. 2006 of collecting all cards listed in the SMR mag. Just added up the damage and I was quite surprized. Ouch!!!

[ChiefBenderForever]

I don't have any limits but don't have much to spend either.

[Section103]

I try to stick to a budget of how much I'll spend in a given month. In effect, it is a "per card cap", but I don't look at it in that way.

Bizarre advice from Ramsey given that he's tying a cumulative balance (your collection) to an annual amount. It's a bit woeful for people who: a) have been collecting for a very long time or b) have lots of wealth, but smaller income.

[Robextend]

I had to go with "No, I don't have any specific limits".

Depending on the card, I might totally overspend in order to secure the purchase. For cards that are more common I try not to go over VCP/fair market value which I guess would be my limit per card. However, when I see something that I have been long after for my collection I don't have specific limits...because if I did, I would probably go over them all the time.

[bbcard1]

I really try to break even...no salary (will probably make an exception for the National) goes into my collection...I can spend anything I make on ebay, freelance writing...and I include my (modest) expense reimbursements in the collection pool. Also generally slide a bonus in there now and then. I would say it comes out to about 5% of my income. I work for my family, I make extra money for me is my general mantra. I will pay national expenses from the family budget. It is both ill and well defined.

[rdixon1208]

I buy my cards with my extra money. When I get paid I put a set amount into an account to pay bills. Then I put a set amount into an account as savings/investments. Once I've done that, I spend what's left on whatever I want. Sometimes it's cards...sometimes it's putting young girls through college.

[FUBAR]

i used to have my "manager" go all Hal McRae when i bought cards... i think that counts as a salary cap

http://www.youtube.com/watch?v=kamDqL-AGzI

[Doug]

Originally Posted by Section103

Bizarre advice from Ramsey given that he's tying a cumulative balance (your collection) to an annual amount. It's a bit woeful for people who: a) have been collecting for a very long time or b) have lots of wealth, but smaller income.

I'm guessing he's trying to say you shouldn't have more than 10% of a year's take home pay tied up in a hobby because otherwise you might end up with someone that makes $30k a year with a $100k baseball card collection that they have accumulated over the years when he would suggest that you limit the collection to $3k and it would be better to put the other $97k toward retirement, mutual funds, putting the kids through college, paying off the house, etc. I would tend to agree with you that everyone's situation is different and it's their money so they can do whatever they want with it.

[peterose4hof]

I'm with Section103, it seems wrong to tie your collectibles pucrhases/investments to your income. If anything it should be tied to your total worth.

That being said I have "No Limits" which goes over well with the wife

[dstudeba]

Collecting for a long time is a red herring. It isn't the amount that you paid for the cards, it is the amount that it is worth today. Forgetting tax ramifications and selling costs, every day the person decides to keep money in their collection instead of in the bank/paying off debts etc.

I agree that it would have have been better as a percentage of net worth and depending on where they were in the the baby steps.

[JasonL]

that I adhere to, however, my internal alarm bells go off for any card over $100, and that makes me think alot, and sometimes I become queasy. Not saying that I won't buy it, but it takes a lot of thought and sometimes even more Tums or Pepto Bismol, depending on the card.

[alanu]

No specific limits, but I'm trying not to "grow" my collection right now, only spend if I sell, or sell when I spend is how it usually works.

[drdduet]

Yes, I don't collect any players who have ever made over $250,000/yr to play baseball.

[JasonL]

Originally Posted by drdduet

Yes, I don't collect any players who have ever made over $250,000/yr to play baseball.

Collect only cards that cost more than the player ever made playing baseball in one season.

[abrahamrudy]

I don't have a limit. That's why I'm broke

[M's_Fan]

This poll is kind of like going to an AA meeting and asking if there are any alcoholics

[wrapperguy]

For cards that have been on the wantlist forever, I will overpay, for the T202 set I just started collecting, I will bide my time and get them for the right price. Desperation and impatience are stretching the collecting budget.

[Leon]

The, as of right now with me included, 80.95% that have no limits is very telling. You guys must be addicts or something...

[toppcat]

I probably spend around 5% of my take home on cards and another 5% on other stuff like the occasional concert and CD's, books, etc that I enjoy reading and listening to. I don't have all that many other interests outside the family so I guess I'm in the recommended range for non-billionaires! Plus a lot of my hobby fun is researching and writing so the $ spent are secondary.

I'd love to spend more on the hobby but I have two teens coming up on college so a lot of dough goes toward saving for that right now and I buy some items in lower grade than I would like as savings are a priority and my card tastes are somewhat esoteric and /or expensive in higher grades.

If I had unlimited funds I don't know what I would spend on cards as I think I would hit a point where I felt I should be giving equal amounts (or more) to charity instead of blowing it on cards as there is some major suffering in this world.

Just my opinion, everybody has their own take.

[Doug]

Originally Posted by Leon

The, as of right now with me included, 80.95% that have no limits is very telling. You guys must be addicts or something...

Maybe I should call the Dave Ramsey show tomorrow and see if he will send all Net54 board members through Financial Peace University as his guests.

my limit is what the markets says. i wont pay more than average for a card unless it is a killer card for my set. Even then I set a limit

[JEFFV96MASTERS]

Post / opinion no longer available

[ethicsprof]

no---
just a judgment cap.

best,
barry

[MacDice]

No salary cap for my collecting habits but due to my wife I am forced to spend like the Pirates not the Yankees. Lot of beaters that I hope will turn into something.

[mab]

I get a little nervous around $150. I got back into collecting because I remember the fun I had as a kid when I couldn't buy anything expensive. Also, when the price starts to equal something else of importance to me, especially time or events with family, it gets to be 'above my cap.'

I do often spend more than that at one time, buying several cards over a short period of time, but it's the individual card cost that sends signals off in my head.