The Cost Of Clutter

Feb 26, 2008 - 12:23 PM PST

Last time I checked Americans saving rate is at -0.5. To put things into perspective it hasn’t been that low since the depression. We owe more money than we save. Often it’s the small purchases that cause the greatest financial pain. Our society seems to be hypnotized to spend money. We listen to terms like “Buy One Get One Free”, “Three Easy Payments”, Only $19.99”…The list goes on. It doesn’t matter if it’s $100 or if it’s 10 cents. If you don’t really need the item you just wasted your money. I see homes cluttered with items of no value. Remember a cluttered home is a cluttered mind, so you not only waste your money on useless things but your energy at home gets drained as well. If you’re looking to buy or rent a bigger house or rent storage for your stuff ask yourself what is it really worth? If you added up the monthly cost of a storage unit, is it more than the items are worth? If you really need it why is it in storage? If you have a packed garage full of stuff ask yourself the same questions. I see people with $20,000 cars parked outside because their garage is full of items that is probably not worth more than $1,000.

How can we turn this around? GET RID OF IT. The average person uses about 20% of what they own. If you have items sitting around the house not going up in value and you don’t love it or need it, get rid of it. Sell it, give it away or throw it away. If you made money from selling your items, use it to pay off your debts. Don’t allow anything in your home that will ultimately drain your money, resources and energy. When you go shopping and you’re considering buying something, ask yourself: is it going to sit around and collect dust? Do I have other items in my house now sitting around taking up space and dust? Why are you really buying this? Once you bring it home, will you feel good about your purchase a week from now? The same can be asked about the food and drinks we buy when we eat out. When you cook at home (not counting ready to microwave meals) you generally save money and eat healthier. You know you’ve eaten a healthy meal if you feel energized and focused afterwards as opposed to feeling tired. If you remove all the fat and excess from your life and keep it simple you will find it easier to save and build your net worth.

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