I’m a Budgeting Expert: Here’s Why Paying for a Storage Unit Is Always a Terrible Idea
While storage units may seem like a smart and convenient choice at the time, they carry tons of hidden costs such as administrative fees, insurance protection plans, moving supplies, specialty locks and premiums for climate control.
Chris Walsh is a senior advisor and regional director at Capital Choice Arizona, where he helps individuals get out of debt, increase cash flow and retire early. One trap he helps clients avoid? Purchasing a storage unit.
Explore Next: Bola Sokunbi: Here’s How To Build an Emergency Fund Without Blowing Your Budget
Trending Now: 9 Subtly Genius Things All Wealthy People Do With Their Money — That You Should Do, Too
“Storage units are one of the most remarkable business models and marketing case studies in modern history,” Walsh said.
Translation? They are pitched as benefiting the consumer, but they only ever benefit the storage company.
By the Numbers
James F. Smiling, founder of Debt Clarity Tools, estimated that a storage unit typically costs between $100 and $300 a month. At, let’s say, $180 per month, individuals are spending $2,160 per year for their stuff to just sit. Smiling explained many people wind up paying more for the storage unit than the items are worth because they keep the unit longer than expected.
Alternatives
Instead of purchasing a storage unit indefinitely, here are some smarter ideas Walsh recommended.
Sell Stuff
Often, people store their items while in transition only to realize that their items don’t match the aesthetic of their new place anyway. This is why Walsh advised selling your items on Facebook Marketplace instead. Not only could you increase your savings by eliminating a storage unit, but you could also put the money from the sale of the old items toward brand new items.
Borrow Space
Have a trusted friend or family member with space in their garage or attic? These people may be inclined to do you a favor or barter services.
Digitize Your Belongings
Many people accrue photo albums and documents over the years with which they can’t part. Yet, they take up space. So, instead of maintaining the hard copies, scan and upload them with services like EverPresent. This also protects them from damage.
Have a Hard Out
If you already have a storage unit, pencil in a date for a hard out. Then subtract a couple months from that. The trap of storage units is that most people rent them with no concrete exit strategy. This means expenses accrue indefinitely, which ultimately wreaks havoc on your budget.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: