A hobby becomes an investment when it meets specific criteria, not just about money. However, anyone can begin the journey to making money from a passion when they apply themselves. From monetizing a skill to crafting and selling something unique, here are some examples.
Collectibles with a Track Record
There are many growing categories of passion assets that people love to collect. Rare items and luxury goods are among the most sought after because of the monetary potential, but also because of the love and respect for certain items. Something like a vintage wine, a rare watch, or a Morgan silver dollar coin is prized because they have history and provenance. This makes them a hobby for sure, but also one passion that you can genuinely make money over time.
Monetizing an Existing Skill
If you are good at something, then never do it for free. Skills are sought after for a reason, and although you may not think of skills as an asset or investment, they really are. If you can do something that most people can’t or have specialist knowledge, you are in a unique position to turn a hobby or passion into a long-term investment in yourself. Building gaming PCs, repairing watches, and even photography are highly-skilled hobbies that people will pay good money for.
A Hobby Becomes an Investment with Tangible Assets
562 million people globally hold cryptocurrency assets that they trade or hope to cash in someday. However, the digital nature and volatility of crypto make it risky. Hobbyists enjoy real asset alternative investments of a more tangible nature that they can invest in for real money:
- Fine wines and spirits are becoming a popular entry-level investment for beginners.
- Antiques and furniture of high quality are always a good investment when looked after.
- Vintage cars can be a lucrative hobby because of the high level of expertise required.
Crafting and Selling Unique Products
Everyone has heard of Etsy, but how many people can say they make good money from it? While anyone can open an Etsy store, the competition is stiff, and most don’t see much income. So how do you make money? By investing in yourself as an online store owner, you can turn a hobby into a viable business. Unique art and sculpture, one-of-a-kind jewelry, and even music production are valuable these days, and the more unique they are, the higher you can charge.
Investing in Your Own Expertise
When was the last time you invested in yourself? As a skilled and talented person, you are an asset. Any hobby or professional skill you have has the potential to make money and provide a steady income. However, you can also secure long-term investment in your own future funds through side hustles such as teaching and consulting. Or how about content creation for a blog or YouTube channel? If you are knowledgeable, you can also appraise and curate rare items.
Collectibles with a track record are a good example of when a hobby becomes an investment. The rarer the better, but you can also make money from tangible assets such as antiques. However, you are an asset yourself, and investing in your own skills pays off in the end.
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