What do a collector, a downsizer, and someone who’s in between apartments have in common? They have too much stuff for the size of their homes. In search of extra space, they put all their excess belongings in self-storage.
The self-storage service industry provides a clean, secured, and climate-controlled space to stow your stuff, whatever that may be — whether it’s a few boxes you inherited from a passed loved one or an entire house’s worth of furniture while you await to receive the keys to your new home. Some even moonlight as fitness rooms and offices.
It can be handy to have another room that’s purely for storage, but you’ll pay a premium for the privilege. The average storer pays $165.55 monthly— nearly $2,000 a year! In five years, you would blow $10,000 on simply storing items that you, if you’re being honest, probably don’t need or use.
What could you do with that kind of money? Here are 5 reasons to cancel your storage unit.
1. Build an Emergency Fund
An emergency fund is supposed to hold three to six months of your living expenses, but most people are far off the mark. If you’re behind on your savings goal, convert your monthly storage fee into a monthly emergency fund contribution.
2. Pay off Installment Loans
People often rely on installment loans online when their emergency funds aren’t strong enough to handle an unexpected expense. These online loans can fill in as backup for savings in emergencies, giving you fast and convenient access to urgent cash. Normally, you’ll pay it back according to a predetermined schedule that includes several payments spread out over time.
With an extra $165 or so each month, you can pay off your installment loan faster, wiping out debt and possibly reducing your interest. To see how your pre-payments affect your account, learn about installment loans and early payments from your lender.
3. Give Your Retirement Fund a Boost
Most people are behind on their retirement goals, too. Your usual storage fee could be better used to prepare for retirement. If you’re not already contributing to a retirement plan, use this cash to open a 401(k) or Roth IRA. Consistent monthly contributions will grow thanks to the power of compounding interest.
4. Invest in Yourself
That extra money can go towards a number of things that can improve your life, from simple self-care purchases to career-changing courses. Find some inspiration below:
- Purchase tools or equipment you need to start a new hobby.
- Enroll in fitness classes or get a gym membership to get in shape.
- Level up your skincare routine with products that make you feel and look good.
- Take a professional development class to improve your skills.
- Buy fresh produce and quality food items so that you can start a deliciously nutritious diet.
- Go on a vacation to recharge or have fun.
5. Repair or Renovate Your Home
Staying on top of household maintenance will be easier when you have an extra $165 available each month. Investing this money in upkeep can help you avoid serious breakdowns and damages in the future. You may also consider saving up to invest in costly home improvements. Check out these tasks that promise the best return on investment.
Storing stuff you don’t need or use could be holding you back financially. Learn to let go, sell or donate your stuff, and try your hand at any of the ideas shared here today.