Ways to budget your hobbies into your retirement
Engaging in hobbies during retirement offers profound benefits, from stimulating the mind and your motor skills, to combating isolation. It's a chance to connect with like-minded individuals, share experiences with different generations, and keep the mind and body active.
However, balancing these enriching activities with the necessity to make your retirement funds last is crucial. Here’s where strategic financial management, including the savvy use of credit cards, comes into play. Here are a few ideas to help harmonize your hobby expenses with your financial longevity.
Budget for fun
In planning your retirement budget, allocate a regular amount from your surplus to hobbies and leisure. This ensures that you minimize unexpected expenses and that you don’t deprive yourself of the R&R part of your retirement.
Use tools available for you
Find a credit card that aligns with your lifestyle goals. Look for cards with benefits, promos, and rewards programs that match your spending habits and how you’re most likely to spend on your hobby. Consider cards that offer travel rewards, or cashback on everyday expenses like groceries and gas:
- If your hobby requires you to drive a lot, a card that has a 3% fuel rebate can save you up to PHP15,000 a year.
- If you love to travel, Metrobank’s Travel Platinum Visa lets you earn a mile for every PHP17 spent on airlines, hotel accommodations, and foreign currency transactions. You also get free airport lounge access.
- If your hobby requires you to buy most of what you need in the supermarket, like baking, Metrobank Cashback Credit Card offers a 5% rebate on groceries, telecom, and streaming services. You can even calculate how much you can earn on rebates.
Make it a group thing
Joining groups or clubs related to your hobbies can also be cost-effective. These groups often offer resources, discounts, and shared experiences that can make your hobbies more enjoyable and less expensive.
Make sure to regularly track and review your hobby spending. If you find that your hobbies are costing more than anticipated, it might be time to scale back or make adjustments … or maybe it’s time to turn the hobby into a small business?
Learn more about how you can enjoy (and make the most of) the fruits of your labor:
