By cobalt123

Most people assume that in order to collect art you’ve got to have millions of pounds to squander away. This assumption is entirely wrong and in actual fact it’s better to collection art from new artists in order to maintain the industry and showcase new talent. If you have a passion for art collecting it could bring you great pleasure and could be an extremely beneficial investment.

There are a couple of things you should think about, however, before you decide to start collecting art.

How do you start?

First and foremost, if you are considering investing in original art pieces you should definitely have a keen interest in art. Whether it is paintings, photography or sculpture, having a general understanding of artistic production and technique is always a start.

Before you decide to buy your first piece of art it would be worthwhile to visit art museums, fairs and potentially read a couple of art magazines. This way you can establish the kind of art pieces you’d like to invest in. During this process hopefully you will find art pieces that really draw you in and resonate with you.

Where to invest

Most collectors will buy their art directly from a dealer but if you are new to art collecting, art galleries and international art fairs might be the better option. Exhibitions such as the Royal Academy Summer Exhibition has been established for over 200 years and is the largest open submission contemporary art show in the world. Emerging and established artists exhibit their art at the show through a variety of media types including sculpture, printmaking, film and many more.

Exhibitions such as this are fantastic for people wishing to invest in art as the artists themselves are often there to talk about their work along with art dealers, and the staff and gallery curators are always very helpful and knowledgeable without being pushy.  With so many entrants showcasing their work, be prepared to see something you like. It’s a good idea to bring along a 0 interest credit card in case you see something that sparks emotion and you feel like you must have it before somebody else snaps it up. If you feel like you have to have it, it’s a good sign that this is the piece for you.

Invest in contemporary or vintage?

If you are looking to collect art on a relatively small budget it is more likely you’ll find contemporary art more approachable and attainable. When looking to collect older pieces of art it is suggested you work with an advisor or dealer, buying older pieces isn’t just about the artwork, it’s about the history, the artists intentions and the reputation that comes with the piece.

By BFLV

Emerging contemporary artists will approach you with enthusiasm and even established artists will be willing to compromise on price if you show interest in their work. There are now a variety of online stores where up-and-coming artists are selling their original work, Esty is very popular with contemporary art and can be a great way to find attractive, niche art pieces that you might not see in established galleries or exhibitions.

Why invest?

Finally, if you are considering investing in art you should probably know why you’re doing it. Even though collecting art is an investment, you shouldn’t think of it like that. Buying art should be personal and should be a passion, buy art that you love not that you think everybody else would love.

If you buy a piece that happens to skyrocket in value while you have it, think of it as good taste.

Have you thought about investing in art or do you own any? What advice do you have for people looking to collect? Let us know in the comment section below.

If you start to add up the cost of car ownership, it rapidly starts to become very expensive  indeed.

Even if you use every trick at your disposal to make motoring affordable it still is never a cheap proposition. Also cars tend to depreciate in value rapidly, given this it might seem surprising that any numerate person would even consider buying a car as an investment.

For some investors, whether you consider them fortunate or skilful is up to you, classic cars have proved to be a successful way for them to diversify their portfolio. Could classic cars, like fine wines or art, be a sensible ‘alternative investment’?

During 2011 specific parts of the classic car market did see some healthy growth. In fact if you owned the right vintage models you could have seen a 20% increase in the value of your investment. To put that into context, that was twice the growth seen by gold in the same period.

Investing in classic cars is far from a trouble free business. Like any physical asset it needs to be  protected and maintained. This storage and maintenance carries with it an overhead. Neglect this and the condition of the asset will degrade, lowering its value.

It may be fine to leave a painting in a vault, but cars are machines designed and built to move. If you leave them to their own devices in even the nicest of air conditioned garages they will degrade over time. Part of maintaining a classic car in top condition is actually taking it out and using it every now and again.

The need to take classic cars out and drive them is just one of the reasons why this kind of investment is best left to the enthusiast. There is no guarantee at all that the value of a classic car will increase at all, so if you are wanting to invest in one it only really makes sense if it is one that you will enjoy running.

Of course there is a balance to be struck when it comes to maintenance and restoration. In general the better condition a classic car is in, the more valuable it will be, but in certain circumstances the most important thing is authenticity. For instance a rust-bucket mini from 1959 has been valued at £15,000 – it was thought to be just the eighth of the popular British cars ever to have been built.

If you are going to be driving a classic car on a regular basis then there is a question as to whether you should be modifying it in order to bring it up to modern standards of safety and reliability. If it is done carefully then it should be possible to revert to factory settings as long as the original parts are kept.

Have you invested in a classic car? Or maybe you’re thinking about it? Share your thoughts in the comments below.

Image via ZyMos

@themotleyfooluk – An old standard with sites also based in the US and Australia; investments are their main game. If you do your own trading, or even if you have money in the stock market, you need to be following this.

@PensionsGuru – Steve Bee, former Head of Pensions at Prudential and pension strategist at Royal London, dishes out pension advice. He’s established himself as a bit of a go-to guy when it comes to the ins and outs of UK pensions, so this should be your first stop when it comes to sorting yours out.

@cashquestions – Daily Express commentator and BBC Radio 3 personality Annie Shaw deals out financial advice on the daily. She’s pretty good with interacting with followers, which is a bonus.

@bitterwallet – They call themselves “the best source for consumer hacks, tips & news from the trenches of the HotUKDeals community.” To sum it up: financial and consumer rights news for the rest of us with a bit of a sarcastic edge.

@hilaryosborne – The editor of guardian.co.uk/money brings a bit of humor to her financial commentary. Another good account to follow for UK issues, including housing. Also good at interacting with followers.

In the world of personal finance there are a great number of financial terms which get bandied about alot, however many of these can be difficult for anyone who does not have something higher than a Masters degree in Economics to understand. To help out I have decided to try to demystify some of the regular phrases with this handy little cheat list. And here at Cashzilla we are always happy to receive any additional definitions that any of you out there may want to provide to make the finance jungle just that bit more understandable.

Hedge fund manager:
Gardener who is serious about their savings

Salary:
A posh salad vegetable

Broker:
Unsuccessful investment

Bull market:
One that is not very good

Bear Market:
Where Paddington and Winnie The Pooh buy groceries

Banker:
Job title and cockney rhyming slang describing the job holder

Institutional Investor:
Financial trader specialising in care homes

Stock analyst:
Restaurant critic

Drop shipping:
Placard statement by air freight company

Time management:
How to display a collection of Rolex watches

Depression:
A sad hole into which everyone’s money disappears

Black Monday 1987:
Unsuccessful follow up to New Order’s Blue Monday

Fanny Mae:
But seldom does

Freddie Mac:
Aka Frederic the light brown overcoat

Millionaire:
Someone who aspires to be a billionaire

Billionaire:
Someone who never learnt to share as a child

Wall Street Crash:
Public safety announcement

Philanthropy:
The art of letting everyone know how much money you have given anonymously to charity