Spending too much on golf?

Golf, for pleasure and business, is more popular than ever. But it can eat up significant amounts of time and money. How much is too much?

---

“Golfing for pleasure is no different from vacations, cottages, boats or other hobbies or toys,” says Chartered Accountant Colin Gray of Burlington. “What you spend on it depends on your discretionary income after paying for items that need to be paid for.” “When it comes to business-related golf,” Gray says “It’s just like any other business expense. You must determine the return on your investment. If you are attempting to start a business relationship or maintain an existing one, it is a great way to get to know someone. You can learn a lot more about a person and their business in six hours of golf than you would over lunch.” When it comes to determining the appropriate amount of time and money to spend on golf, the key is to have a plan. “Be purposeful and determine what you want to get out of golf,” suggests Chartered Accountant and financial planner, Ruby Lougheed Yawney of Lougheed Financial Planning in Sudbury. “Is it to spend more time with family? Prestige? Networking with clients? Exercise? Be honest about your objectives.” Lougheed Yawney suggests determining how much of your personal or business budget you want to allocate to entertainment, marketing and advertising. “Then decide how many other activities you are interested in besides golf,” she advises. “For example, if 10 per cent of your budget is for recreation, decide how much of that 10 per cent will be spent on golf.” “Don’t forget to account for your time,” she adds. “Golf is an extremely selfish sport, because it takes five hours to play a game and takes you away from family. Assess whether it is worth the investment of your time.” If you are concerned about your golf spending, there are ways to cut back. “Move from private to public golf,” suggests Gray. “You can reduce the number of rounds you play or play at less expensive courses. Many courses have non-prime time discounts, group discounts, or last-minute discounts.” You can also resist the temptation to buy the latest equipment (or wait for it to go on sale) and book golf vacations during the off-season. From a business perspective, you may be able to save money by organizing a charity tournament instead of taking individual clients out to play, because you can write off more of the related expenses. When setting your budget for golf and other entertainment or marketing activities, talk to a Chartered Accountant. “CAs can add perspective,” says Lougheed Yawney. “They can advise on whether you are making good use of limited time and money.”