In our last post, we challenged you to think about who you are in this space. Are you a collector, a flipper, an investor, or something in between? We explored the importance of naming your role, defining your strategy, and separating nostalgia from intention. But identity is just the first piece of the puzzle.
The next layer, one most people never bother to look at, is financial readiness.
And that’s where this conversation starts to get real.
Because the truth is, you can’t build a strategy on a shaky foundation. If your finances aren’t stable, your decisions won’t be either. If you’re constantly stressed about money or stretched too thin, you’re going to react to every market dip, every influencer hype cycle, every new set release with panic or FOMO. You’re not investing. You’re gambling. And you’re hoping it pays off fast enough to keep your head above water.
But here’s the thing. Markets, especially speculative ones like TCGs, don’t care about your timing. They don’t care when your bills are due, when your rent clears, or how much you “need” a certain card to go up in value. If you’re playing with money you can’t afford to lose, you’re setting yourself up to lose more than just dollars. You’re risking burnout, regret, and possibly financial consequences that spill beyond the hobby.
This is the line that matters most: there’s a difference between disposable money and dangerous money. Disposable money is what you can spend freely, without it hurting your life or your obligations. Dangerous money is the kind that was supposed to pay for groceries, rent, debt, or peace of mind. It’s money you’re going to need back, and likely soon.
A lot of people in this space are using dangerous money and calling it investing. They think they’re building a portfolio, but what they’re really building is a trap. Because when the market dips, and it will, they won’t have the luxury to wait. They’ll have to sell. Fast. Often at a loss. And that’s how you get wrecked. Not because the cards were bad, but because your position was built on desperation, not discipline.
Financial readiness means more than having some cash in your account. It means knowing your limits. It means having your bills paid, your emergency fund in place, and a long enough timeline to ride out volatility without panic. It means having margin, real margin, so you can make decisions from a place of strength, not scarcity.
That strength is what gives you holding power. Holding power is what lets real investors wait out a soft market instead of fire-selling the moment they feel pressure. It’s what allows you to keep your sealed product sealed. To ignore short-term dips. To think five years ahead, not five minutes.
Without financial readiness, every market shift becomes a threat. You chase cards because you feel behind. You sell too early because you need liquidity. You double down recklessly, hoping a win will fix a bigger issue. And when none of it works, you walk away from the hobby bitter, calling it a scam when really, the problem wasn’t the cards. The problem was how you got in.
This isn’t about being rich. It’s about being realistic. If you're spending hundreds on slabs but ignoring your credit card debt, you’re not investing. You’re avoiding. If you're preordering booster boxes while living paycheck to paycheck, you’re not strategizing. You’re speculating with stress.
Real investing starts before you ever buy a card.
It starts with how you manage the rest of your money.
It starts with asking, Can I truly afford this?
And if not, What do I need to fix before I say I’m “in the market”?
There’s no shame in saying “not yet.” In fact, that might be the wisest investment decision you ever make.
In the next post, we’ll look at what it actually means to have knowledge and experience in this space, because having money is one thing. Knowing how to use it? That’s where investing truly begins.
⚠️ Important Note
This post is for educational and informational purposes only. It is not a recommendation or solicitation to invest in any security, asset, or collectible. Before making any investment decision, you should consult with a licensed professional who can evaluate your unique financial situation and help you create a plan that aligns with your goals and risk tolerance.