I've often suggested that a great way to earn some extra money is to turn your hobby into an income. For some of my thoughts on this subject, see these posts:
- Turning a Hobby Into an Income: How I Did It
- An Example of How to Turn a Hobby into an Income
- Turn Your Hobby Into a Nice Second Income
Along the same lines, Dr. Thomas Stanley recently posted on a young man named T.C. who turned his gun collecting hobby into a huge asset. The details:
At that time he already had 12 years of training by his mentor, his grandfather, who was an amateur gun collector. At the age of 21, T.C. had a nice collection which included early model Colt revolvers and Winchester rifles. That collection alone in a good market today would be worth more than $2M. From the start, T.C. enjoyed reading and researching guns, buying and trading guns, and visiting gun shows with his grandfather. He loved American history which related well to his interest in gun collecting.
Not bad for a "hobby", huh?
Dr. Stanley goes on to note the following:
Ask a national sample of self-made millionaires the following question: In terms of net market value, what is your number one most valuable asset? About 5% will answer: tangible collectibles (TC). In other words, these people are collectors of certain types of tangible and/or collectible assets. These include everything from antique firearms to coins, gems to precious metals, and stamps to artwork. Most, 6 in 10, of these millionaires are part-time collectors who have other full-time occupations.
If you asked me what my most valuable asset is I would say my career. (Yes, even though I "only" have 15 to 20 working years left -- if I wanted to use them all.) If you wanted a tangible asset, I'd then say my retirement accounts, followed by my real estate holdings and then my taxable investment accounts.
I don't have any collections of value. No coins, precious metals, artwork, stamps or anything more exotic like guns.
That's where I stand -- how about you? Two questions for you today:
- What's your most valuable (non-career) asset?
- Do you have any collections worth anything of value?