Millions of Americans have so much stuff, they now need to rent a self storage unit.
But have you ever stepped back and added up what you are paying to hold onto all those old possessions, that you will probably never use again?
So Popular it is in TV Shows
Self storage is a billion dollar business, a trend so popular it's become the subject of reality shows like Storage Wars, and has even made fun of on hit sitcoms.
Many people think storage will save money in the future, so you won't have to repurchase a dining room set, or clothing for the next child or grand kid.
But that's a costly gamble, with the average 10 by 15 foot unit $120 a month. That's $1,400 a year....not including taxes or extra insurance.
And from the doesn't that stink file, what that old couch could cost you long term.
Consumer Reports Magazine says if you invested that money at 5% a year, it could be worth almost $10,000 in 6 or 7 years. Doesn't that stink?
Consumer Reports suggests you hold a yard sale for the big stuff, stick the small valuables in a closet at home, and throw out the rest.
My advice? If you are storing goods you will need in a future home, or for a child's college dorm room, then it makes sense to hold onto it.
Otherwise, cut back and de-clutter so you don't waste your money.
Don't Waste Your Money is a registered trademark of the EW Scripps Co.
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