Personal Finance Advice

When it comes to storage units, many people are simply throwing away their hard earned money. Unless you are renting a storage unit for a specific reason with a set time period (for example, you’re moving and there is a three month time gap before you can move into a new place), you are likely wasting a whole lot of money. This is especially true if you have a storage unit because you just don’t have enough room in your current home. Sound familiar? here are 10 reasons that storage units are a waste of money:

Storing Clutter

Most people rent or buy storage units because they have too many items in their home. Unfortunately, the first items that get boxed up to go into storage are the unnecessary, rarely used items. If you currently rent a storage unit, do you actually know what you have stored away? Chances are you have a lot of unneeded clutter and are storing items you’ll never use again. In this case, you’re essentially paying to store useless items and you’re better off selling them.

Stolen Property

Storage units might be hard to break into, but that doesn’t mean it doesn’t happen. There are people who store incredibly valuable items in storage units, after all. Most storage companies claim that they’re not liable for items that are stolen or lost. If your storage unit is broken into and your items stolen, you lose out on that money.

Weather Hazards

Storage units that claim that they’re not liable for stolen property are also usually the same companies that won’t compensate you for weather damage. If you end up renting a storage unit that has mold or water damage, your property will be ruined, and therefore useless. These weather hazards are often concealed when you’re first shown the unit, so you might not even know they exist.

Prevents Downsizing

As stated, the reason most people chose to rent a storage unit is because they no longer have space in their home. If you’re moving to a smaller house or apartment, your focus should be on actually downsizing your belongings, not storing them away. If you don’t have room in your new home, why pay for a storage unit? If your true goal is downsizing, there’s no need to waste money by putting things in storage.

Empty Space

Unless you have an extremely large amount of items to store, you’re probably going to be wasting space. One of the easiest ways for storage companies to make money is by renting large units to people who don’t maximize the space. Only have a few pieces of furniture? Look at all that empty space in your storage unit that you’re still paying for. Don’t pay for space you’re not using.

Not Maximizing Space in Your Home

There’s probably space in your home you’re not using that could be used for storage. Instead of paying exorbitant rates for a storage unit, start getting creative with storing items at home. Build shelves on your walls or in your closets. Store things under your bed. Buy furniture that doubles as a storage unit. With a little ingenuity, you can find some new places to store your items.

Store With a Friend or Family Member

Of course, storing your items with a friend or family member only works if you actually have a friend or family member who’ll agree to store your items. If you do, this doesn’t mean you should overdo it and store everything there. But if you need temporary storage for a couple months, see if they’ll take some boxes or furniture. You’ll end up storing for free than paying costly monthly fees.

Increasing Fees

Depending on where you rent, you could face increasing fees each month or year. Some companies have a “special” deal when you first start renting, but will increase fees as more time passes. Other companies also charge more if you’re only renting for a short time period. Even if you shop around of decent rates, be wary of how much extra you might be charged after the fact. Always read the contract to look for hidden fee increases.

Replacing Items is Less Expensive

This is hit or miss depending what type of items you’re storing. If you’re storing furniture or appliances for a long period of time (because of traveling, deployment, or college, for instance), it might be cheaper to just sell those items and buy them again when you need them. The fees you pay for long term storage will probably be more than what the item is really worth. Before you rent a storage unit, look over your items and calculate their worth. Is it really necessary to keep the items or can you buy them again later?

Losing Your Items if You Miss a Payment

Due to the recent reality shows about storage units, most people now know that if you miss a payment, you’re in danger of losing all your items. Storage companies can make a lot of money from selling items in your storage unit. Worse, they’re not lenient about missing or late payments. You’re usually granted a very small time period to pay back the money. You don’t want to risk losing your items, do you? Even if you’re only storing clutter, you’re still losing out if your items end up in someone else’s hands.

So what can you do to avoid wasting money like this? Learn to live with less and become aware of which items you own are useful and which are merely adding to the clutter. While it may be easier to throw all that stuff into a storage unit to deal with later, you pay for that procrastination. Save yourself the stress of having to think about what to do with all that junk and sell what you can, donate the rest and set yourself free. You’ll feel better and so will your pocket book.

(Photo courtesy of pmsyyz)