Resisting the Urge to Sell

[rainier2004]

Huh...touchy subject.

I followed "if I don't have the money, I cant buy it" for years with everything.

Last fall I broke it...while outta work. I had been hired but had a couple weeks before I started my new job. The opportunity came along to get the CJ Jax as a beautiful mid-grade for the price Id expect to pay for a rough poor one. So I talked to the wife, she begrudgingly said pull the trigger and I did. The plan was to have it paid off by the end of march...I actually borrowed against myself at 0.25% monthly penalties...that was 4 months ago, life has really gotten in the way and I still owe most of my debt. Ive sold more of my cards than I ever planned, w/o regret. But I will never do this again, ever ever ever. I just don't like the feeling of "owing", especially for cardboard. My penalty for this decision will only cost me a couple hundred dollars in the end, but I absolutely hate it...plus you're not in the hobby anymore as you're in debt. To buy cards now, I have to sell cards (I'm just about to sell my t205s and t206s...cards I didn't think Id ever sell). I love my card but have debated selling many times to end this...but it looks very nice in its display. To each their own, be careful, attitudes change.

[HRBAKER]

The problem with using a CC for cards is that it is like a drug. The first hit is painless, but before you know it you are chipping at it all the time and you have a big debt to pay down. I did that one month when I decided to put my card buys on the CC and I was horrified with the result.

Amen to that. I have always been of the opinion you don't fund a "hobby" with debt. That is better left for things that you can't live without - like a house, education, etc. That may sound a little "Stone Age" to some here.

[Leon]

I have a problem. I am a card addict. I live vicariously through my cards and many times, while funding things to resell, I get down to the dregs in my bank account. I just finished refinancing my house yesterday. In order to do that I guess I am doing something ok, as my rate will save me around $600-$700 a month in less (pure) interest. The charges will be paid back in around 6-7 mos so it made financial sense.
Last week I walked into Sam's and they counted out 15 one hundred dollar bills and 3 twenties. That was how much I made, in profit, from using my CC last year (by the cash back program). I had less than $100 in finance charges in total...as I did some card purchases for a month or two instead of paying the card. I hate anything financed except my house.
All in all it's a fun game you just need some discipline (and a wife that doesn't ask questions)....regards

edited to add, in regards to the original question, almost everything is for sale but I try to keep my core collection in tact. That being said, when I could use a bit of money I will sometimes sell something. Not a big deal. And most of my valuable stuff is at a safe deposit box but that doesn't stop me if I want to sell. I drive by it almost daily anyway.

[HRBAKER]

Point well taken, but the management of short term debt takes a great deal of discipline. Technically, I use a CC for almost all of my card purchases as my PP acct is tied directly to a CC and not a bank account. But it is paid off every month so essentially it is a short term interest free loan of sorts.

Sadly in my experience, I know a lot more folks who are managed by their debt as opposed to the other way around.

I don't think that most cash-only hobby folks have money buried in their backyard. Could be wrong.

Of course when I find a seller that will let me pay over time with no charge, then that's a bonus too.

[Leon]

Originally Posted by HRBAKER

Point well taken, but the management of short term debt takes a great deal of discipline. Technically, I use a CC for almost all of my card purchases as my PP acct is tied directly to a CC and not a bank account. But it is paid off every month so essentially it is a short term interest free loan of sorts.

Sadly in my experience, I know a lot more folks who are managed by their debt as opposed to the other way around.

I don't think that most cash-only hobby folks have money buried in their backyard. Could be wrong.

Of course when I find a seller that will let me pay over time with no charge, then that's a bonus too.

Some people can manage short term debt and others don't do as well with it. I would rather exploit debt and take advantage of it. I think it comes from my heritage (my grandparents) as they did fairly well with modest means. I watched them when they were still around (RIP) and learned a lot.....I also read a lot of articles about debt too so I have an idea what makes fiscal sense. No interest charges are generally the best unless I can pay $50 in interest and make several hundred off of the debt I incur. (as stated before). When something is for my collection I am sort of messed up because then it becomes a long term asset and hurts cash flow. But that is ok too as I would rather have a card than a CD (this is not what most people should do and I don't recommend it).

[Exhibitman]

I agree but my wife doesn't always see it that way so I need to generate cash flow from my collecting to fund my collecting as much as possible. Which means that when I win a nice lot at auction I usually have to break it down and sell it [mostly] off to recoup my investment and try to make a profit for later use. Believe me, I'd rather keep everything, but life doesn't work that way for me...yet.

[Jlighter]

Originally Posted by Leon

But that is ok too as I would rather have a card than a CD (this is not what most people should do and I don't recommend it).

With rates so low, CDs/Cash/Cards are basically interchangeable, one makes a little money, one loses a little money, and one can fluctuate. Cards are also less liquid then the other two. If rates were to go up over 3%, not likely in the near term, I would sell a few of my cards and buy a bunch of 10 years.