Sell your stuff and stop spending

INTEREST rates are the lowest they have been in recent history, yet our cash flow after paying our mortgage and expenses is the lowest it has ever been.

A favourite quote of mine is from Nigel Marsh.

“There are thousands of people out there who work long, hard hours, at jobs they hate, to enable them to buy things they don’t need to impress people they don’t even like.”

So what is our obsession with buying?

Our garages are full of things we don’t use, when our garages are full, we fill storage sheds with even more things.

In fact, there is now a multi-million-dollar industry for storage in Australia.

You could comfortably place every American within the 2.22 billion square feet of storage space in the USA.

This spending on stuff is leading to a vicious cycle of work, buy, debt, and by spending and not saving, we are leaving ourselves exposed and unable to progress to a healthy retirement.

When things inevitably change in our economy or if circumstances, or our lives are altered, we aren’t able to be flexible and we’re unable to adapt.

This puts us at risk of financial stress or mortgage stress, which three out of four Geelong homes are said to experience.

Warren Buffet – the world’s 3rd richest person – still buys second-hand cars with hail damage, despite his $80 billion net worth, this is an example of a true money mindset.

Understandably, we have to live and enjoy our lives as we deserve to spend our hard-earned money, but to what extent?

Sell your stuff, or consider using the share economy to make back some money.

Websites such as OpenShed, Camplify and Spacer are innovative ways to make extra bucks.

I believe we should be cashing in on experiences and memories, rather than possessions, while balancing the ability to save for a relaxing future.

I like smashed avocado and espresso martinis as much as the next person, but as a young investor, I always remind myself to balance my spending with saving.