Another Financial Goal: My very own full court basketball court

Another Financial Goal: My very own full court basketball court

If you follow my blog you know I have a goal of having $100,000 in principal put away by the time I reach 30, I have also talked about how I would like to make $100,000 per year by the time I reach 30, I’m currently working out plans for other goals, such as when I should reach $1 million dollars and possibly how much money I need to retire early (in my 40s). This goal however is going to seem somewhat counterintuitive to those goals. In roughly 5 years time I want to have enough money put away so that I can build a house out in the country with a full court outdoor sportcourt basketball/volleyball/tennis/etc court.

Sport Court
(image from sport court of southern california)

I have always been a huge jock and sports have been a huge part of my life. I have one boy now, a girl on the way, and well hopefully plans to have a basketball team or more in the future ๐Ÿ™‚

I know for some of you this goal may seem like frivolous spending and upwards of $40,000 in my early mid 30s for a basketball court probably isn’t what most people would call a smart financial decision. I mean do you realize how much $40,000 would be worth if it was invested and compounded for 30 years!?!? (Nearly $700,000 @ 10%, but we all know that 10% return is just a myth:-) More on inflation here)

Regardless life is all about balance. What good is all that money if you don’t get to spend it on things that you truly enjoy. I don’t know about you, but I think I will get much more enjoyment out something like this when I am in my 30s and my kids are well kids than I would when I am 65 years old and in need of a new hip and a couple new knees. So even if it costs me a half million dollars in the long-run I think it will be money well spent.

I don’t need to rationalize it, but if I were to here is how I would do it. I will already have well over $100,000 put away for retirement. I have never had and never will have any credit card debt. I drive cars like this, so essentially while a basketball court may seem extravagant to some people, buying a $30,000+ truck\SUV every 5 years does not. Just by driving cars like mine a lone I should be able to come out way head and I’ve already got the solid financial base built so that a major purchase like this will not derail me financially.

Anyway so what do you think? Am I nuts? As I get more and more of my financial saving goals on track and really have sort of put the retirement savings into cruise control I think it’s worth my while to put the same kind of effort into organizing and financing some of these fun goals. I also want to have enough cash stashed away each year so that my family and I can go on a “travel” vacation every year or so. All in all I think this will require me putting an additional $5,000 a year into a “fun” fund.

I know $5,000 x 5 years only equals about $25,000+ and my basketball court could possibly cost double that, but if we will be moving to the country – we will be building a new house so I figure I could borrow some additional capital (ala mortgage) if I needed to. I will probably have about $30-$50k in equity built up in my current house as well. I guess the idea isn’t to entirely save for this basketball court, but to get into the habit of putting away a significant amount of money for enjoyment now instead of entirely deferring it all for when I am retired or financially independent. As I mentioned above life is all about balance (if you haven’t please read this post).

So now to the nitty gritty – in 2008 I will start putting $400 /month into a family fun fund. I still plan on maxing out my and my wife’s Roth IRA’s and my 401k at work. Which means that’s about $34,000 a year I’ve got allocated away. Throwing another grand or two in there for the college savings plans and I’ve already earmarked nearly 50% of my pre-tax salary for the year. It will be a challenge but I’ve had the screws a lot tighter on our finances in the past and my career/income is really starting to take off so hopefully this goal will be easily attainable.

Next up – philanthropy

  • j2r

    I say GO FOR IT!
    You’re right that everything is about balance. As long as you’re financial responsible, you should be able to chose how you spend that money you set aside to keep you happy. For some people it’s cars/gadgets (like me), and for others would be a basketball court.

  • michele

    Just do it! We shouldn’t be blind about this “retire early and millionaire” statement. Being wise about the future is fundamental to live a happy and safe life but the present is part of it too.
    After maxing out my 401(k) and having built a security fund for emergencies, I put aside about 500/month for “fun funds” (travels, electronic gadgets, etc..). Starting 2008 I will be working on a Roth IRA as well. And uh, I believe we are the same age ๐Ÿ™‚

  • j2r

    Actually, thinking about it, my gadgets and cars will lose value fast, while your basketball court will prob hold its value for a while. So you’re being much smarter than the those of use that spend our money in cars

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  • Katie

    Go for it! I know many close friends with a court like this. Their courts are awesome! One of them actually got a putting green too! I think Sport Court is where they got one…they all live in the southern California area. They can play so many sports on their courts! Great investment ๐Ÿ™‚

  • Mark Barbadillo

    Good idea! I’m already a big fan of yours because of your Big Vision & Wonderful goals in life.. I was just looking around some pics on google about a Outdoor Basketball court that i want to have in the future. I say go for it!

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