This Arkansas man spends at least 50% of his income on Pokémon cards and once spent $28K in 1 month. Why Caleb Hammer says he’s giving up his future

On a recent episode of Caleb Hammer’s Financial Audit show on YouTube, the collector admitted he regularly spends thousands a month ripping open packs of cards, which is often more than he earns (1).

“I spend at minimum 50% of my income on Pokémon cards,” Hammer said on the show, speaking on behalf of Jeffrey while summarizing the collector’s financial situation. “And even though I only bring in about $3,000 a month, earlier this year I spent $28,000 in one month on Pokémon cards alone, and usually spend 4,000 a month.”

For Hammer, this isn’t just a quirky hobby; it’s a flashing red warning sign.

From 'fun money' to financial free fall

Jeffrey insists this is just discretionary spending; his "fun money," as he explained on the show. In his mind, Pokémon cards are a passion and potentially an investment, but his lifestyle tells a much different story.

He's routinely spending more than he makes, not to mention he has virtually no savings and no retirement nest egg either. To keep costs down, Jeffrey moved in with his sister and now pays nothing toward rent or utilities.

That decision, which could have been a turning point toward financial stability, instead became Jeffrey’s fuel for spending more on his cards. With fewer bills, his monthly Pokémon budget expanded. When Jeffrey tried to downplay his behavior, Hammer called him a "literal addict,” comparing the pack-opening cycle to loot boxes in video games, stating “it’s gambling.”

Jeffrey admitted the emotional pull is intense, saying he was "kind of upset" about missing a recent card drop. He explained that he spends beyond reason because he gets a thrill from acquiring new collections, and often gets upset when he misses one.

The illusion of Pokémon as an 'investment'

To be fair, Pokémon cards have produced eye-popping headlines in recent years, with rare cards fetching life-changing money.

The famed Pikachu Illustrator card sold for $5.275 million at auction back in 2022 (2), and high grade first-edition Charizards routinely sell for six figures through major auction houses (3).

The thing is, these are extreme outliers. The vast majority of modern Pokémon cards — even graded ones — will never approach those returns. When it comes to collecting Pokémon cards, condition, print run size, market cycles and cultural relevance all matter. Without a disciplined long-term plan, most collectors end up with boxes of cards that are emotionally priceless but financially insignificant.

This is where Jeffrey's logic collapses. Hammer estimates Jeffrey could sell his entire collection for a “couple thousand bucks,” yet Jeffrey admits to spending $28,000 in a single month. That is a lot of money that could have gone toward savings, financial independence, education expenses, housing stability or a balanced investment portfolio.

When 'fun money' stops being fun

Financial planners generally suggest that discretionary spending stays within strict limits.

A common guideline is the 50/30/20 budget — 50% of take-home pay goes to essentials (housing, food), 30% goes to wants (hobbies, entertainment) and 20% goes to savings. Jeffrey's Pokémon cards alone routinely exceed his entire income, never mind the 30% cap.

There’s also a tax angle many hobbyists overlook. The IRS treats collectibles differently from stocks, and profits on items like trading cards can be taxed at up to 28% — significantly higher than long-term capital-gains rates on most investments (4).

So, even if Jeffrey’s cards do happen to rise in value, he will pay more to cash out, and that's assuming he can find buyers.