One of our guilty OnDemand pleasures is “Storage Wars” produced A&E. The show focuses on the bidding wars of four featured personalities and then highlights the treasures & trash purchased in the unpaid storage lockers.
At the end of each show, we turn to each other & question: Why did these unknown people pay to store junk? Why did they put priceless family items in a dark space? Why was the rent delinquent when selling a small portion of the items would have paid it? Why were the items abandoned at all?
Know Thy Enemy
Scary facts: Self-storage is primarily an American invention. Last year (2010), self-storage was a $20 billion industry & has been the fastest growing segment of commercial real estate over the last 35 years. Nearly 1 in 10 households use a self-storage unit – an increase of 65% over the past 15 years. A billion square feet of storage facilities was built between 1998-2005.
Storage companies are slick salesmen. First month’s rent is typically free or just $1 with no contract. Use of a moving truck is available to drive money from your wallet to their business. Many people start the storage habit thinking they will deal with the overflow quickly. Months turn into years, and before you know it, the cost is higher than most will admit.
Co-conspirators
There are many co-conspirators that come into play with a storage war:
Gifts of Christmas’ past: Parting with a gift can be difficult – simply because it was a gift. Counter attack: Keep in mind it’s the thought that counts and no one would want you to pay a monthly rent to storage their gift.
Memories: A picture from a first apartment, boxes & boxes of baby clothes, a rocking chair from the nursery, the box of games that were so much fun 10 years ago, or inherited furniture doesn’t fit your lifestyle either in function or style. Counter attack: Take a picture of these items to remember in an album that’s easily accessible at home rather than during infrequent visits to the unit.
Sunken costs: You paid good money for it! The original cost is no longer a factor if you aren’t going to use it. Counter attack: Sell it on eBay, craigslist, or at a garage sale to add to your emergency fund or college savings. Give an item to someone who will appreciate it. Donating to your favorite organization is a win-win: you lose the storage unit, you get a tax-deduction, and your charity gets a donation to use towards their mission.
Family members: Sonny boy got married last year and didn’t want to take his childhood keepsakes. You married late in life and had to combine two full households – resulting in the extras going into storage. Counter attack: If adult children want these items, then they need to take them home. If you aren’t using the item in your household – then perhaps it’s time to let go.
Yourself: Clothes that are too small are kept in hopes of the diet working, even though they are out of style. Collections that took years to accumulate no longer have a priority in your life. Counter attack: If you haven’t used it in a year, sell the item on Ebay or donate it. Admit that your interests have changed and find a new home for your collection.
Casualties of Self-storage
Storing things in general, whether in your closet, your garage, your loft, or a self-storage unit, can be extremely dangerous to your household budget. Not being able to see things easily can cause overspending. If you can’t find it, you’ll possibly purchase a duplicate item.
Even if you know you own the gadget or item, sometimes it’s easier to buy another one rather than search through boxes hoping to find it. Add to the process driving a few miles to public storage, going through the security gate, opening up the locked unit, dragging out boxes into the alley, sorting through boxes – and the odds just increased that buying is easier than playing Hide & Go Seek at Public Storage.
Freeing up space in the closet or garage can encourage new purchases because the feeling of being “stuffed” is now gone. Kind of like how a bigger pair of pants can allow overeating when the feeling of being “stuffed” is removed.
Not all family heirlooms & mementos bring up good memories. Dealing with these items once and for all can provide an emotional freedom.
A storage unit the size of a closet can easily run $800 or more a year – costing more than the value of the contents inside.
Winning the War
Is one of your monthly bills to a self-storage facility? Why? What was the original reason that led to using paid storage? Does that reason still exist?
If you know you need to stop using paid storage, make an action plan to deal with this financial drain in the next week! You might also need an action plan if your storage problems exist in your closet, spare bedroom, basement, or garage.
Get help from a spouse, neighbor, friend or family member to spend next Saturday battling your way through the boxes and make tactical decisions to win your war!
Have you used self-storage? Tell us your story! Meet us in the comments!
Image by TK Edens/Shutterstock
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Cherie is a small business accountant with a passion to teach others about personal finance -especially military families through the Financial Peace program. Cherie enjoys spending time with her husband of 23 years, quilting, and volunteering.
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