We all have experienced it – “I will buy just this one more and I am done”. Those are the famous words that are usually followed by a pile of
boxes figures that it soon becomes a challenge to find space. In other cases, some collectors need to sell part of their collections as to make ends meet due to unexpected life circumstances.
Given this and my own background as a financial professional, I thought to help out in some misconceptions of good practice such as “payment plans” and so on.
Here are my tips in making sure that you control your impulses and not the other way around:
- Create a physical limit for the collection
- Create an annual budget
- Do not pay with an installment plan
- Give more value to what you already have
- Do not pre-order immediately (ok… unless you are a Hasbro collector: ) )
- Have your significant other with a more detached and less emotional attachment to the character to give an opinion about the collectible
- When in doubt, do not buy it
- Do not make exceptions
1- Create a physical limit for the collection from the beginning
It could be an entire room or just a wall. It is important to create a couple of rules that reinforce each other. It is difficult to where exactly to draw the line when a hobby becomes a non healthy obsession. However, as with porn, we all know when we see it. It is too easy for collecting to become a completionism compulsion for the next buy instead of joyful entertainment. It also helps if you think where your collection will focus on (i.e. scale; quantity; brands).
As with investments, you must have a system of rules before you start. Emotions should not be the only factor to consider, even in “passion goods”
In my case,
my wife and I have decided that a 3m wall will be where my collection will be located. This will help reinforce rule #2.
2- Create an annual budget
“Don’t tell me what you value, show me your budget, and I’ll tell you what you value.”Joe Biden
This subject could be an entire post. I will try to keep it as short as possible.
So to give a proper advice, this will be longer than usual. I will use some fancy language, but stay with me, it is not that boring : )
Budget is about priorities and following the rules you set. The recommendation for any family household to know how much on average is their monthly mandatory expenses (i.e. rent, real estate payments, groceries, education, insurances etc). To be on the safe side for those “rainy days”, you need to have between 6 to 12 months worth of expenses as savings that you can quickly access in a day or two (i.e. checking account). As an example, if a household spends USD 3,000 per month for their mandatory expenses, then it should have at least between USD 18,000 to USD 36,000 that it can access quickly. Thus, this is not to be used to buy a car, a new figure, other superfluous expenses nor invest it for the long term investments.
Then, with the remaining cash make an annual budget that will be revised by the end of every year. Within the year, you can revise for exceptional reasons such as when income is expected to increase or decrease for a period of 12 months or more (i.e. new job; promotion etc). Keep in mind when making a realistic budget for the year that many behavioral studies have shown that we have a bias to think in terms of marginal cost instead of total cost. In our specific case, this means that most decide thinking in the terms of one more collectible instead of taking the decision that if he gets this collectible, it will actually mean 20+ more in total.
Thus, the decision is not if you are going to spend USD 10 or USD 300 in a new collectible, but if you are willing to spend USD 2,000 or USD 10,000 in total. The decision to buy your first collectible will LEAD to buying others.
3- Do not pay with an installment plan
Many people use Payment Plans as a way to help them organise their spending as they are thinking in terms of monthly cash flows that fits their budget. DO NOT DO THIS. You will likely lead you to overspend. Always think in terms of total cost. Also, if you follow rule # 2, it does not matter if you take that cash out of the short term savings account or your salary. Cash is cash. In addition, you increase what is called Counterparty Risk. Meaning the other side defaulting on you (you are paying cash months if not a year before you have the product). Simply answer the questions below:
- Does this collectible fit my annual budget?
- How many others I will buy because of this collectible?
- How many more can I still buy if I buy this figure?
Make an annual budget, so you will know the total cost per year that this will cost you. This might make you think more before jumping into a new collectible. Payment plans will make you overspend and give cash way before you need to.
4- If you can , do not pre-order immediately
This might not apply for everyone as in some geographical locations, pre-orders can run out very quickly. However, if possible (i.e. Hot Toys collector that buys from Sideshow) use this to your advantage. It will not cost you more, it will help you cool off from the hype and, it will give you more insight of the new figures that are going to be announced and better plan which ones you really want.
5- Give more value to what you already have
– “I find that everybody has a number and it is usually an exact number. So what is yours?”
– “More”Wall Street: Money Never Sleeps – Exchange between Jacob Moore and Bretton James
Collecting is addicting, there is a physiological reaction in your brain when you buy a new collectible. Thus, it is important to balance the act of simply buying new collectibles with the art of displaying them nicely. We have all seen photos of collections with a multitude of figures, all placed together that you can barely see most of them. The effort seems to be in buying.
Instead of focusing on the next thing, have fun with what you already have. Learn to create a diorama or a simple background or modifications for your pieces. Get inspired in how to better display your collection and spend your time in improving it instead of focusing on the next thing. In the long term, this will create more anxiety than pleasure.
6- Have your significant other with a less emotional attachment to your collection give an opinion about the collectible
This has worked very well for me. My wife supports me in this hobby, but it is not her thing. So she can always give me a logical and cold advice on how good or not a certain figure looks and she reminds me to think about the overall collection and its presentation. She has convinced me to change my mind a few times and I am very grateful for her to make me avoid those impulse buys.
7- When in doubt, do not buy it
To the contrary to many YouTubers recommend, when in doubt, do not buy it. If FOMO comes into your decision, you will end up with too many collectibles and out of space or just looking like a hoarder. Plan ahead where your collection is going in terms of space, type of collectibles and how you are going to display what you have and what you plan to buy.
8- Do not make exceptions
It is easier to keep a rule if you follow it 100% instead 98%.
Make a realistic rule and keep it to it. When you make the first exception (“I will only do this once”), it will get easier to make another exception down the road, and another, and another. Life only gets more complicated, so you will always have a way to rationalize to not respecting your own rules. It will be much less stressful and time consuming in the long run if you keep your promises.