Turning hobby into $$ ?

[Taxman59]

I didn't have my reading glasses on and though it said $$ for Hubby!

 

[brucethebroker]

The key is doing something you enjoy for money, and having the flexibility to "turn it on and turn it off" for travel, etc.

My hobby business is fun, brings in a modest income, and has the needed flexibility.
Should one or two of those qualifiers drop off, I will close the business.

 

[griffithee]

I've been thinking about this the past couple of days. Our neighbors daughter is a senior in high school and having some issues with calculus. I spent four hours with her getting her up to speed in calculus in preparation for a test she has on Tuesday. She seems to have gotten more of a handle on it and I felt really good helping her out. I enjoyed explaining it to her and she was comfortable with the way I explained it. I also learned that before I volunteered they were looking around for a tutor it was going to cost them anywhere from $45-$60 an hour. So, if figured doing something I enjoy and evidently kind of good at it, I think I would like to be a private tutor. I hold bachelors degrees in economics, mathematics, and computer science. I also hold an MBA. So, I think I hold the necessary credentials. I enjoy tutoring math to individuals who really want to learn math. But would not like it in a classroom setting. Moreover, I think as a tutor I will be able to control my own schedule much better than a dedicated classroom. Might even entertain tutoring economics and programming. We shall see.

 

[folivier]

The key is to control how busy you get. It can quickly become a j*b and I don't think anyone of us really wants that.

 

[Badger]

The key is to control how busy you get. It can quickly become a j*b and I don't think anyone of us really wants that.

This is exactly what I have experienced a couple of times pre-retirement with photography and basket weaving/making. They became too much of a job when the demand increased beyond making it a fun hobby. I guess I was selling way too cheap.


For the past 7-8 years I have been involved in ceramic arts (throwing on a wheel). I sell at Art/craft fairs to pay for my materials but I give more away than I sell when NOT at art venues if someone admires a piece and I know it would be cherished. The look on their faces when I just hand it to them for free is worth more to me than the money I would have made. Everybody wins. I get the pleasure of creating art and seeing my efforts appreciated and they get a nice surprise that makes their day.


Cheers!

 

[audreyh1]

I would think most would try to tie there hobby to a business, if nothing else just for the tax deduction.

Photography - Travel to exotic locations for material becomes deductible
Jewelry - Travel to fairs around the country becomes deductible

My next business venture will be medical tourism I've already started some research on it.

Too much trouble when you don’t need the money.

Plus the IRS - it can take a lot of work to actually make a legit profit.

Sadly, the IRS understands the game. (https://www.irs.gov/newsroom/is-your-hobby-a-for-profit-endeavor) Expenses can only be deducted to the extent of hobby income unless you convince the IRS that this is a serious business. This is done most of the time by showing a profit in three of the past five years.

 

[folivier]

But that's the whole point of my post. Making a few $ on something you would be doing anyway. Not for a career but best is if you control just how much $ you make.
And if you're doing something anyway for your own enjoyment and there is a value to others, why not charge $?

 

[RunningBum]

Agreed (with Audrey). I'm retired and feel confident about my financial status. What I want is to enjoy my life, and hobbies are a big part of that. The easiest way to make a hobby stop being fun would be to turn it into a business. Otherwise it's like when people tell me that because I like to ski, I should be a ski patroller. That would totally change the ski experience for me, almost certainly for the worse.

If it would naturally make money with little effort and stress, maybe, but I think that's doubtful.

If supplemental money is needed to make my plan work, or provide for extras I'd really get value out of, that's a different story.

My folks used to travel with a couple, and the guy was a hobby photographer, and I think he did it as a business. My dad said it was a pain, because the guy would drag along all his equipment and have to set it up at stops and get the lighting right, etc, instead of just enjoying the views and snapping a few pictures. They'd be ready to go, but he would be waiting for a cloud to move or the light to be right.

 

[audreyh1]

But that's the whole point of my post. Making a few $ on something you would be doing anyway. Not for a career but best is if you control just how much $ you make.
And if you're doing something anyway for your own enjoyment and there is a value to others, why not charge $?

Because there is usually a lot of extra work involved in making money at it.

 

[Aerides]

Because there is usually a lot of extra work involved in making money at it.

Getting started there is a huge amount of work. Just a short list (let's say you want to sell on Etsy):

Business license with your state, LLC/Tax/EIN, figure out income and use tax requirements for your state
Packaging, shipping, - how you gonna?
Product photography - expert level needed to sell realistically online
Customer servicing - responding to queries, returns

Ok so I'll just do a few craft fairs instead!

Application fees - usually at LEAST $100 per, if less it's probably not a good show. And that's if you get accepted.
Booth setup, displays, payment handling, packaging
And you still need all that tax setup stuff, maybe even liability insurance depending on your business.

A hobby business is 10% hobby, 90% business. It's a lot easier once you get experienced, and there are some tax advantages but those only work so far as you are profitable. IE, can't deduct $5k in travel expenses unless you're making more than $5k to start with.

I started my business in parallel with ER planning, and it took a few years to be worth it, and it yields a healthy part-timer type income. Now I'm in a simpler operating model, and have found my groove, and yes I have the "work a few hours when I want to and turn it off and on when I want" - the desired state. But I didn't get there remotely overnight.

 

[Fedup]

This is exactly what I have experienced a couple of times pre-retirement with photography and basket weaving/making. They became too much of a job when the demand increased beyond making it a fun hobby. I guess I was selling way too cheap.


For the past 7-8 years I have been involved in ceramic arts (throwing on a wheel). I sell at Art/craft fairs to pay for my materials but I give more away than I sell when NOT at art venues if someone admires a piece and I know it would be cherished. The look on their faces when I just hand it to them for free is worth more to me than the money I would have made. Everybody wins. I get the pleasure of creating art and seeing my efforts appreciated and they get a nice surprise that makes their day.


Cheers!

I used to enjoy doing ceramics, I don’t now because I have no room for storage. Our community has fair around Xmas time, residents can sell their stuff here. I’ll be glad to get back the cost of my canvas for my painting.

 

[Chuckanut]

Because there is usually a lot of extra work involved in making money at it.

+1

And a lot of new limitations on how flexible one is with his/her own time.

Work! - Maynard G. Krebs, The Many Loves of Dobie Gillis

 

[Fedup]

Agreed (with Audrey). I'm retired and feel confident about my financial status. What I want is to enjoy my life, and hobbies are a big part of that. The easiest way to make a hobby stop being fun would be to turn it into a business. Otherwise it's like when people tell me that because I like to ski, I should be a ski patroller. That would totally change the ski experience for me, almost certainly for the worse.

If it would naturally make money with little effort and stress, maybe, but I think that's doubtful.

If supplemental money is needed to make my plan work, or provide for extras I'd really get value out of, that's a different story.

My folks used to travel with a couple, and the guy was a hobby photographer, and I think he did it as a business. My dad said it was a pain, because the guy would drag along all his equipment and have to set it up at stops and get the lighting right, etc, instead of just enjoying the views and snapping a few pictures. They'd be ready to go, but he would be waiting for a cloud to move or the light to be right.

I don’t even carry a camera anymore when I do overseas travel. Maybe road trip locally for large equipment. My husband’s friend carried a huge lens when he came out to see us, very cumbersome.

 

[audreyh1]

Agreed (with Audrey). I'm retired and feel confident about my financial status. What I want is to enjoy my life, and hobbies are a big part of that. The easiest way to make a hobby stop being fun would be to turn it into a business. Otherwise it's like when people tell me that because I like to ski, I should be a ski patroller. That would totally change the ski experience for me, almost certainly for the worse.

If it would naturally make money with little effort and stress, maybe, but I think that's doubtful.

If supplemental money is needed to make my plan work, or provide for extras I'd really get value out of, that's a different story.

My folks used to travel with a couple, and the guy was a hobby photographer, and I think he did it as a business. My dad said it was a pain, because the guy would drag along all his equipment and have to set it up at stops and get the lighting right, etc, instead of just enjoying the views and snapping a few pictures. They'd be ready to go, but he would be waiting for a cloud to move or the light to be right.

If he was a serious photographer, the experience would have been the same, regardless of whether he was selling his photos, I can assure you. It’s not generally a good idea to travel with a serious photographer and all his gear if you don’t want or expect to take long periods of time at each location.

 

[TwoByFour]

We have a gentlemen's farm. Two acres in Hawaii. We grow tangerines, oranges, limes, lemons, avocados, coconuts and pineapples. It is mostly fun for us (but also a lot of work) and we sell some of the produce and give a lot away. And we eat a lot of it.

This is a major change for us, we had office jobs in Seattle before retiring. It's like that old TV show, Green Acres.

 

[folivier]

I thought about trying to sell my landscape photos at fairs. But the long hours, fighting for a booth space + the cost kept me from doing that.
Proofreading works great. I can work on my tablet or phone anywhere.

 

[Amethyst]

I do original art needlework, and people have offered me money for it. I have never taken money, although I have given a few things as gifts.

Someone offered me $500 for a handmade vest I was wearing; I turned it down. It had taken me at least 200 hours to make it.

 

[doneat54]

I started a web business as part of my vintage VW hobby back in 2003. FIRE'd in 2017. I make wiring harness kits for 1953 and older VW Beetles, I restore semaphores (turn signals) from that era of cars, as well as speedometer pods and intake manifolds. All very rare parts that often sell for $1000+. The income is very sporadic and the financial model is that it is always "play money", except for $500/mo that when I retired and presented the monthly budget to DW (who is still w*rking) was "Rent" that my business must pay the house.[mod edit] http://www.zarwerks.com

 

[davemartin88]

I volunteer and also serve on the board for a local artist Co-op and usually spend time there 2 days a week. I sell some items there and through word of mouth but would never make a living at it or want to, it would be too much like work. I don’t even want to think about how much money I’ve spent on tools, if I ignore that cost, I usually get a few dollars and at least cover my supplies. Signs for local businesses are easy to sell around here and I turn down a lot of these unless there is something unusual about them. This year, I’ve had enough cash flow to install a mini-split HVAC unit in my workshop, really nice to have the AC during the high humidity season. Will also be able to heat the shop enough to keep paint and glue from freezing more economically than the propane heater I have installed. I make a bit of money but really enjoy the interaction with others in our Co-op and the customers I meet there. I’m pretty much a homebody otherwise so this is a good outlet to socialize but still get home early.

 

[38Chevy454]

I started a web business as part of my vintage VW hobby back in 2003. FIRE'd in 2017. I make wiring harness kits for 1953 and older VW Beetles, I restore semaphores (turn signals) from that era of cars, as well as speedometer pods and intake manifolds. All very rare parts that often sell for $1000+. The income is very sporadic and the financial model is that it is always "play money", except for $500/mo that when I retired and presented the monthly budget to DW (who is still w*rking) was "Rent" that my business must pay the house.[mod edit]

I also have a car related side business that grew out of my old car hobby. I have had it for about 10 years now. Being a sole proprietor and 100% home based, I use the home office deduction and it is beneficial come tax time. All of my sales are mail order, although sometimes I will set up at a swap meet for in-person sales. The swap meet also is good to get rid of my used car parts unrelated to the business. My business is selling new parts, which are door latches and installation parts for replacement into old cars. I have a website, but mods don't want it listed here.



Yes it is a little bit of work, but it does not seem like work compared to the megacorp real job. Now retired, the small extra income from the side business is a nice thing. Certainly never enough to get rich or that expedited early retirement. But some extra cash to put towards my old car hobby.

 

[Walt34]

I have a website, but mods don't want it listed here.

[mod hat on]

Here's the deal on a website link for a forum member's hobby business:

You can put a link to it in your profile.

You can put a link to it and a description ONCE, here:

http://www.early-retirement.org/for...sic-and-art-created-by-our-members-64204.html

And that's it, not in any posts, even if relevant to the thread. It kind of smacks of "mining" the membership, which the mods want to avoid even the appearance of happening. I hope this clarifies things.

[mod had off]

 

[COcheesehead]

eBay. My wife and I have sold over $80,000 worth of “stuff” on eBay.

 

[DrRoy]

I had grand ideas about turning my photography hobby into a side gig by doing photo books or picture editing for other people. In the end, I did not really have the time or desire to do it. I have gone as an assistant instructor on a few photography workshops.

 

[folivier]

I have a friend who sourced out a set of small set of parts to rebuild an expensive item that is a common source of breakdowns on a somewhat popular vehicle.
Since he did he has built a nice kitchen table business and has frequent sales. Gives him a nice amount of "hobby money".

 

[BoodaGazelle]

Photography hobby

If he was a serious photographer, the experience would have been the same, regardless of whether he was selling his photos, I can assure you. It’s not generally a good idea to travel with a serious photographer and all his gear if you don’t want or expect to take long periods of time at each location.

Serious photography is hard work, whether you get paid or not...