9 September 2007 2 Comments Print This Post  Email This Post

What is the best way to decrease your saving and investing capabilities? Buy tons of stuff. That stuff will eventually compile and at the end of it’s cycle, it becomes crap. First, you see something you like and chances are you only like it temporarily. You think it would be awesome to own that item so you go ahead and buy it either with cash or credit. You add it to your stuff collection. Down the line you realize it wasn’t so cool after all and thats when it becomes crap. It just sits there and takes up space.

I don’t like crap, be it lies from sneaky people or the crap that takes up space in my room. I think crap is distracting because I believe that if your working and living area is organized, its a reflection of the activity in your mind. Not only is crap an eyesore, its a drain on your bottom line and energy. Imagine the opportunity cost of stuff we accumulate over the years that becomes crap. In 30 years, I would much rather have the money, which would be earning compounding returns, than a mountain of crap that will only earn a scolding from my future wife. But don’t worry, you still have time to stop the process and prevent your stuff from eventually becoming crap. Here are a few pointers.

The Pre-Purchase

This is the biggie. The best and obvious way to not have crap, is to not buy stuff that will eventually become crap. Easy right? So the next time you want to go out and buy some gadget or a shirt, take a step back and think about the potential that the item has to become crap down the line. For clothes, see if you can picture yourself wearing it more than once. Will you be the same person five years from now if you didn’t buy the item? What will you do with the item once you don’t want it? Ask yourself, is buying this item really worth it in the long run? By long run, I mean would you really be enjoying this thing for years to come or will investing it and earning returns year after year on that money a better option? Remember, that top of the line plasma TV is not costing you the $3000 price tag, its costing you way more when you factor in the opportunity cost of $3000 earning interest over five, ten, twenty or even thirty years. I can usually talk myself out of buying stuff which I know will become crap later on, I call it my patented crap filter.

How to prevent Stuff from Becoming Crap

If you already gave in and bought a bunch of stuff, like me, theres still hope. The best way to prevent your stuff from becoming crap, is to sell the stuff you’re not using or enjoying! This is hard for a lot of people, who like my parents, cannot accept the fact that stuff depreciates. My mom and dad are the king and queen of crap because they didn’t get rid of the stuff when they had the chance. You don’t want to sell a $1000 computer for $300, but if you’re no longer using it, $300 is better than $0 and having to stare at the darn thing day in day out. This is why companies have clearance sales. When my mom was running her business, she would never have clearance sales because she didn’t want to sell things at or below cost, so eventually they became crap and crap is worthless.

I’ve been selling off a bunch of this so called stuff on ebay and craigslist lately. I’m taking all that can still be considered stuff at my parents house and selling them for cheap just to get rid of it. Along the way our living room is starting to look nicer and I can actually walk around freely. The money from this selling is starting to add up and is in the hundreds. Try to get the highest price possible for your stuff, but if its not selling, that means your price is too high. Remember its all about supply and demand. Get whatever you can for your stuff before it becomes crap.

Another way I get rid of stuff is to donate. Perhaps there is a relative, friend, or charity out there that can benefit from your stuff and actually put it to good use. I am a proponent of donating because even though you don’t get money back, you can rest assured that your stuff is being used by someone who needs it, and therefore it doesn’t become crap that just sits in your house. I donated most of my clothes I never wear to the Salvation Army. It was on the verge of becoming crap.

If your stuff has already become crap, meaning it probably has no real value to anyone even if it was free, then simply throw it away. I believe its not worth keeping crap because all it does is clutters up your living area and your mind. Trust me, once you get rid of crap and prevent stuff from becoming crap, you’ll feel a lot better and so will your bank account! So take some time and get rid of old stuff, buy wiser. Here’s to a crap-free life!