Hello every one, just had a very interesting listen this morning to a couple who have landed on hard times as they put it.
The one partner was saying they must take the larger 27m² storage unit while the other was saying we need to store what we can in the 12m² storage unit as they can only afford the smaller one.
This got me to thinking about the society we live in. yes we need to preserve what we can when we can. No argument from this storage man here. What we need to focus on is the quality of what we store. We would not need to store if money and space were never an obstacle in our lives. (yes some of us live in small homes by choice) but essentially it is a choice all the same.
Over the last couple of years we have seen many people lose everything because they could not let go of 80% of the stuff. Select what you keep carefully and make sure you pay your rent. Storage companies are not charities but affordable spaces to keep goods in the time needed. For the most part. I would like to advise people on the following criteria. Does it need a lot of space Y/N, can I replace it easily later when I get that new job Y/N, is it a family heirloom that needs to be kept at all costs Y/N.
The difference may only be R200 or R300 a month in the cost of renting the space and you plan to rent for no more than 3 months. Agreed. However the universe has decided you need to start afresh and do what you love and not what pays the highest salary and you need to store for at least 2 years. The math is simple. 300 x 3 = 900. However you need it for 2 years which is 300 x 24 = 7200.
That old washing machine and fridge you wanted to keep can be replaced for less than that. Keeping in mind you will replace your second hand goods with other second hand goods. So the cost is kept to a minimum. In our business we always want our clients to do well and use the space for fun stuff too.
So rent the space you need in times of famine and rent the space when you need to keep the fun stuff too. Just don’t rent more than you need.
I was so lucky growing up and spending a lot of time with my grandparents as they knew about living within your means. They taught me to look at what money I have and then spend accordingly. You must never spend more than you have. If you do you are stealing money from your future and it will cost you double in the end. Grandad always said that the only two things he bought on credit were his cars and his house. The car was a necessity and the home and investment. It has helped me to stay away from a consumerist lifestyle most of the time and the few blunders I have made were not significant. Not to say I have not been affected adversely by circumstance and other bad decisions. I was just lucky I did not have the additional debt most people carry with those bad decisions.
A simple formula to work with goes as follows.
- Make sure it’s in the bank
- Plan to spend 80% of what you earn and not what you have
- Save 10% for a rainy day
- At the end of the month spoil your family if you have any left of the other 10%.
Hope this helps some to navigate their way in times like now when inflation is taking its toll on us all.
All the best Anthony.