NYTimes article on people losing their financial minds and throwing money away on expensive hobbies....including reefing!

[JeanR]

The World’s a Mess. So They’ve Stopped Saving for Tomorrow.

Many adults under 35 are throwing financial caution to the wind. It’s all about saving less, spending more and pursuing passions.

www.nytimes.com

From the article: (sound familiar to anyone?)
Rather than putting his pay into a traditional savings account, Schuyler Wagner, 25, has been pouring his time and money into an idiosyncratic investment: coral farming. For Mr. Wagner, a financial analyst in Tempe, Ariz., aquaculture was a childhood hobby that he gave up in his college years — large tanks don’t exactly fit in dorms.

After graduation, he pursued it again. Now he tends to Goniopora (also known as flowerpot coral), Euphylia (which can be very expensive, Mr. Wagner said) and Acanthophyllia (“a massive single polyp coral that can be as large as a pizza”), among other types of coral. Mr. Wagner has seven tanks in his condo, with a total volume of over 450 gallons. He buys and trades the chunks with other hobbyists in Arizona, as well as reef specialty stores and aquatic pet shops.

Mr. Wagner said he spends $750 to $1,500 on materials and equipment each month. He hopes that one day his expensive hobby will pay off and he can pursue aquaculture as a full-time job.

“Rather than just trying to save to compete with inflation or buy a house in five years, which doesn’t make sense to me right now, I want to pursue this passion,” he said. “There’s so much uncertainty in the world, and Covid has pushed passions to the forefront.”

 

[dz6t]

That is not an investment like putting money in saving account or money market, it is work, which can take as much time as his day job.

 

[dz6t]

You really can’t aquaculture Acanthophyllia, all of them are taken from the reef, so far these are not be able to reproduce in captive, nor even frag-able.

 

[ColtonReef]

Yeah, he would’ve made a ton in a ‘traditional savings account’ /s

 

[shrimpchips]

He must be a terrible financial analyst.

 

[dz6t]

He must be a terrible financial analyst.

Also a misinformed and not prepared reefer.

 

[JordanLess]

That NYTimes piece sounds like an eye-opener, right? It's crazy how hobbies can sometimes burn a hole in our pockets. Speaking of which, ever heard of games for money? If you're looking for a way to have fun and even make a little extra cash, some cool apps out there pay you to play games. It's a win-win situation, keeping both your entertainment and finances in check. Reefing might be costly, but gaming could balance it out. Just a thought! Enjoy your hobbies and make the most of every dollar. Cheers!

 

[thrillreefer]

I guess I just don’t want my whole life to be a financial optimization. All else equal, sure I’d rather have my tank support itself selling frags etc. But I get much more enjoyment from the challenge of keeping difficult animals thriving than I would ever get from a few more dollars in my pocket. So if it costs a bit I’m good.

I’m in it for the thrill, baby!

 

[JohnK]

Money laundering. An elaborate scheme to make money disappear, be it from his significant other, accountant or the IRS? "it was just a truly bad investment."

 

[chadfish]

While some people see hobbies as a way to relax and unwind, others see them as an opportunity to earn extra income. In my opinion, a hobby should bring money rather than take it away. Whether it's through selling crafts or artwork, streaming video games or creating content online, there are many ways to turn your hobby into a side hustle.

Except the IRS stopped the write-off of hobby expenses yet still requires reporting of hobby income.

 

[chadfish]

Money laundering. An elaborate scheme to make money disappear, be it from his significant other, accountant or the IRS? "it was just a truly bad investment."

Stop giving me ideas

 

[ReeferSutherland]

I find it funny how his estimate of monthly materials cost is between $750-1500. In other words he really has no idea

 

[Errol]

I find it funny how his estimate of monthly materials cost is between $750-1500. In other words he really has no idea

 

[Errol]

Become a therapist and write them off as therapy corals.

 

[thrillreefer]

Can I fly them home on the plane with me if I call them emotional support corals?

 

[Skmaiden]

I agree with Dong that coral farming is more work than investment. If you’re at a scale where you can replace income, you’re at a level where it is likely your job. I think the article misses this point entirely, he’s starting a side business to hopefully replace income, not as 401k or other investment etc.

I’m sure if I went all out I could be quite profitable coral farming, but it would take a good size operation to replace my day job and not loose out on opportunity cost.

Coral farming can also be capital expensive so if you’re not smart at minimizing costs, you’re probably going to eat all your profits. Your payback period using 50 Radions will be a hell of a longer than if you can harness natural light for the bulk of your lighting needs.

 

[neptune]

Trying to make money from your hobby turns your hobby into a job.... and therefore less relaxing IMO. Yes I'm sure still enjoyable... but I am happy with the hobby being a hobby... not my job. It is my time... and honestly the cost over 20 years really normalizes to just eletricity, food, and salt. The actual hardware lasts many many years. The lights are super expensive but so is my gym membership.

I just added a ton of fish over xmas... but this will last me 10+ / 15 + years.

 

[JordanLess]

Hey there! I totally read that NYTimes article too – it's wild how hobbies like reefing can sometimes get us caught up in spending. But you know what they say, it's all about finding that balance, right? It's cool to indulge in passions, but being mindful of the finances is key.