![]() ![]() ![]() Here are some examples Lund Fisker gives of hobbies that generate more value than they cost: “Money leaving your pocket is a big warning sign,” he says. Lund Fisker advises that when you’re choosing hobbies or projects to engage in, make sure they produce more value than they cost. As an example, you could bake cakes and sell them in the local community. Taking part in an online course develops your skills. As an example, running improves your fitness. As is reading books that you borrow from your local library.Īnd some hobbies also do one or both of the following: Going for a walk is a good example of a hobby with zero cost. Are free to take part in, so you at minimum break even when you take part.Sports like golf also fit here - think of all the equipment you need, plus the cost per play. Video gaming falls into this category since you need to buy the console and the video game. Have a financial cost, meaning a net loss when you take part in them.Hobbies fall into one or two of the following categories. When your life is a financial system, it encourages you to think about your hobbies in terms of cost and value generated. Jacob Lund Fisker explains in his book Early Retirement Extreme that every good system solves multiple problems at the same time.Ī good example of this is hobbies. Think of your whole life as a financial system - and aim for a surplus Every resilient system includes surplus.īelow, I give two in-depth examples of how to apply these lessons in your personal finances.Think about your financial life in terms of systems.I didn’t realize it at the time but playing this game as a teenager I’d learned one of the most valuable lessons of resource management: There needed to be slack in the system to allow for growth and also to mitigate any disasters. ![]() I quickly learned to always a surplus of electricity and water supply whenever I wanted to grow my city. What’s more, if any utilities are in short supply, citizens very quickly get unhappy and start to move to other, better-managed cities. You can zone off areas for residents and businesses, but without utilities, no one will take the space. But there's one factor that, unless addressed, will mean you attract zero new citizens to your growing town: utilities. ![]() There are all kinds of tweaks you can make to attract more citizens, from building roads to planning green space into your city to offering an attractive tax rate. And SimCity 2000, in particular, taught me a valuable lesson in resource management. I loved having an outlet for my inner business mogul.Īll of these games require you to balance a budget, so they’re great for learning the basics of financial literacy. With games like Railway Tycoon and SimCity 2000 available for pocket money prices during the late 90s, I collected game after game. That’s probably for the best, as it wouldn’t have been a good lesson in ethical business practice. The cheat didn’t work - at least it didn’t help me win the game. I went out and picked up a copy of Theme Park from my local video games store. When my 13-year-old self read about this cheat in a gaming magazine, I knew I had to give it a try. You make a killing selling cola at extortionate prices. Then you hike up the cost of soft drinks. There’s a really evil “cheat” you can do in the 1990s video game Theme Park. Image source: Official Promo Art / Moby Games ![]()
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