Monday 31 March 2014

Sell things you don't use instead of storing them

This arcticle is aimed at potential hoarders and people that can't save money. But I'm sure it's worth reading to everyone with free time. I believe that there is a lot of people with a similiar problem.

Saving money is often an issue. We have bills to pay, everything is expensive and we're made to buy useless stuff we don't even need or we know that it's bad (e.g. it affects our health). Also, a lot of people don't have the will to save their extra money.

I am one of these people...



I'm never able to save money in a long term. Whenever I start saving money. I soon stop to add more money to the savings or I use the savings for something "more important" in that moment. Never reaching the goal I set on the beggining.

But I'm starting to find out how to at least get some of my hard earned and easily spent money back from my purchases, so my another purchase won't ruin me as much as it could.
It's very simple way, used by a lot of people. It's a way how to keep synchronized with new technologies like smartphones, tablets, laptops but even cars!

Start selling everything you have and you're sure you won't use it again, or it's not worth for you to store it. Then you can either save the money or add some more and buy something new.

Example*:
You have older phone (original price 400$) and you want to buy a new phone (also 400$), but you're still missing about 25% (100$) of money for the new one.
If you can sell your older phone for 30% of it's original price, you'll get 120$. With that money, you can finally buy that new phone and you will also have spare 20$ you can either save or spend for some cool gadgets or apps for that new phone.

I was a potential hoarder
Earlier in my life, I stored everything I stopped using in some paper box, in a drawer or on shelves, letting it to get covered in dust, never using it again. I stored even a lot of broken stuff! And everytime I was cleaning my room, I thought it would be best to get rid of this and that, but didn't do it. Every storage in my room was literaly full of junk.
I first understood how stupid it is to store everything when we were moving and I really had to get rid of a lot of that. I trashed two, nearly three big plastic bags of junk! It was stored during my young ages, so there was not many things that could be sold and if so, it wouldn't be worth the time. But I learned a lot from that.

I knew a lot of my friends were selling their older stuff to get newer or something else for the money. I didn't. I stored everything and it was a big mistake!
When I purchased for example a new phone, I just put that old phone in some drawer and after a while forgot about it... Later, after cleaning, I trashed it or gave it for free to someone when their broke. The second option is not bad, but why would you give something, you paid for before, to someone else for free ? They may not be able to purchase new phone right away, but they will surely have few coins to give you for that older piece you have.

Also, there is a big advantage of today. It's called online auctions and online advertising, that can be easily used to sell things you probably wouldn't find a buyer for in your neighborhood.

Advantage of auction is that you can sell items you don't how high to set the price of it. And advantage of the online auction is combined with a big chance that you will find people who will actually be looking for this kind of item, and they can (if you're lucky) be willing to pay even a bit more than it's worth. But yes, even the exact opposite can happen, and you can sell your useless item for lower price than you probably could. But it's always better to get rid of the item before you will store it! 
You can also let it rot somewhere and hope you will find a buyer willing to pay fiixed price you set on your own. And you can succeed, but this doesn't work for everything. It's probably better to sell used car for a fixed price instead of auctioning it, but it's not if you're selling your old phone for a price of new, lower class but actual model that is actually better than your old phone. Because only a complete foul would buy it for some other reason than collection.

You may find this arcticle stupid but I believe that there is a lot of people with similiar problem like I had and sometimes still have. Sometimes, I can't decide if I will need that thing or not, so I store it, but then, after realization that I don't need it, it losts a big part of it's price. Try to beware of this. You can try to calm yourself with the fact that if you will need it again, you can use the money from selling it to buy another, often even better, more actual product with the same functionality.

*I used such a very primitive example just to show how it works. It can even work better if you sell your phone earlier after purchase.You can get even more than 50% of it's original price and then only need way smaller amount of money to purchase new one, keeping yourself up-to-date with new technologies.

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