By: Jeff Curl
Do you really need your moldy pillow from 1993? According to this article, one in eleven Americans pays for a self-storage space. Since this article was published in 1995, and the rate was climbing then, I bet it’s a higher rate today. I don’t know what it is with people obsessively collecting and keeping “things.” I am a bit of a neat freak, so keeping extraneous junk violates my very nature; it’s hard for me to relate. But what I really don’t understand is keeping useless stuff and paying an extra thousand or two…or three to keep it.
People — good people — fill up boxes and more boxes with old magazines, ripped tents, clothes, weird gifts from your even weirder uncle, and trophies from the eighth grade for achievement in science. I’m not knocking your faded Top Gun leather aviator jacket (that no longer even fits) and well-earned award for building an awesome mouse maze (that really demonstrated nothing when you think about it). But why would you pay over and over for these jewels?
A quick internet search revealed a tiny 5×5 storage unit costs roughly $100/mo. in my neck of the woods. And to be frank, most people I know that use storage, squirrel away broken furniture and useless things in case they “need” it someday. Yeah, that Hefty bag with 200 crooked coat hangers might just come in handy, right? Here’s an idea. Sell your stuff on Craigslist and make a little dough, donate your other things and don’t pay $1,000 or $2,000 of your hard-earned dollars to preserve $300 worth of useless stuff. Take that new found money and build a cushion or invest it. Or send it to me.
Timeshares. I hate those things for two reasons: (1) most people don’t actually use the timeshare, and (2) you can almost always find a way to stay at your chosen destination cheaper. I’ve seen a fair amount of clients paying $200 or $300 a month for a timeshare that sells for a penny on eBay. Yes, go look at timeshares on eBay right now. Many owners realize they are worthless and do not want to pay for maintenance fees, so they unload them for $0.01. The worst part is that timeshare owners often never go or they went in 1995. So that week in Florida cost you $24,000 at this point? I’m sure it was stellar, but I can think of a lot of things I could do with that money. And I bet you could as well.
Are you the person that pays $3.89 at the Shell station while everyone across the street at Arco is paying $3.59? Notice how the Arco station is packed and you are the only one at Shell? I know the privilege of having the station to yourself is like getting a suite at the Four Seasons while the commoners are in the regular rooms. But perhaps pocketing the change — every week for the rest of your life — is a better idea. And the people at Arco are not looking you with envy. They are laughing.
As a bankruptcy attorney, I spend a lot of time reviewing people’s expenses so I have a pretty good idea as to how people spend their money. There is no shortage of examples, but those came to mind based on recent discussions.
It’s these habits that can bleed you financially. Heal thyself. Find one unscrupulous financial thing you are doing, and stop. And then do it again until you maximize your financial foothold. I’m confident you will be happier with an extra $1,000 in your bank account versus pulling out that old lamp with a torn shade from storage…and trying to sell it to cover your timeshare you never visit.
Image courtesy of Ollie Crafoord