Despite my coin collecting buddies telling me to stop, I keep finding myself saving paper money. You could say I save all "small head" type notes I get from our local banks... everything up to $100 dollar bills. Even though I only save the higher quality notes, most of them would be spenders (as I've read here) Forgetting the "collector fun" for a moment, is it dumb to have this money tied up? Part of me thinks it is, yet part of me sees fewer and fewer of these bills around... Please advise... Thank you!
Since when did other peoples opinions matter when it comes to your money? It is only dumb if you think it is. Collect as you please!
Collect what you want. It's a hobby....it's for pleasure....it's a pasttime.... Don't be swayed by the ignorant.
I agree, it's a hobby. As long as you enjoy that's all that matters. But also look at it this way. Your money isn't tied up, it's still spendable. It's not like they outlawed old bills. Thus you can enjoy them and when ready can just spend them as normal cash. Besides, by collecting you're actually having a savings which isn't a bad thing, it's a good thing.
Ok...forgetting the "collector fun" for a moment, as you requested, let's speak purely from a financial perspective. Yeah...it's pretty dumb. On any given investment, inflation's going to take 3-4% a year, taxes another 1%. (Those are plug-in numbers for basic financial planning..obviously individual situations can vary). So, as a baseline, financial planners look for 5% return a year, just to break even...that is, just to maintain the investment. Your spender small head bills aren't going to gain 5% a year in value. If they were, they wouldn't be spenders. So...you are, pretty much my definition, going to "lose" money every year you hang on to these, as compared to what you COULD be doing with them...if you willing and able to do the work. Now...having said all that...you really CAN'T "forget the collector fun". It's entirely legitimate...and is, whether we acknowledge it or not what every single one of us is doing with our collections, to say "I'm 'spending' that 3-5% a year to enjoy my hobby. I have some reasonable expectation that at least a few of my selections will wind up having longer term collectible value, and perhaps offset some of that annual loss." From that perspective? Nope...not dumb at all. If you like them, and aren't so strapped for cash flow that you need that money to be moving in your "personal economy", then what the heck? Enjoy em.
With most hobbies, it's a labor of love and you aren't going to make a lot of money from it. Some people collect butterflies, insects, rocks, etc.. You spend money buying equipment, display cases, reference material and whatever to enjoy your passion. I know people who collect and restore cars. They will never recoup their investments. Would they do it over? You bet. It's because of the enjoyment they receive from it.
Thanks you guys... I think I'm going to still do this, but change it a little. From now on I'm just going to keep one example of, say, a $20 bill and not 10 different "versions" of it. Bottom line is that I think I originally got caught up in the "newbie" idea that collecting was basically investing. I know it is to a certain degree, but not as much as new collectors believe it is... Again, thanks!
Seriously? Every single one of us are seen as crazy for spending money on old coins and bills. Once you are a lunatic, why is one area crazier than any other? Enjoy your hobby, and if putting aside some currency for enjoyment makes you happy, I think the tiny little amount of interest you lose out on is more than worth it. Enjoy your insanity like the rest of us! Chris
Keep one from each district for each year. That's what I've started doing with $1 notes and any "small head" higher denominations.
And look at it this way, you won't take a huge hit on depreciation like some do collecting baseball cards and beenie babies. At least you get your face value back on notes you find in straps, and you pretty much break even on the older large notes and legals unless you tell us you paid the world for them.
