How fun to pick up a new hobby! Storage auctions differ from most hobbies because the goal is to buy low and sell high. This game of skill and chance requires money but it’s still a safer bet than buying and selling stocks.
Prepare a financial game plan.
If you pick up the sport of fencing you must sign a sheet of paper that explains the dangers of the sport — “You may receive fatal wounds.” Oh, Mercy!
The only thing that may receive mortal wounds in storage auctions is your savings account. Have, Mercy! Auction hunting can be both a hobby and an investment but always remember cash is involved. Step into the arena with a solid strategy.
With any new hobby or sport you calculate how much of your monthly income you can set aside for equipment, gas, and your time. Same rules apply to buying storage units.
If you have never created a monthly budget now is the time. Map out the basic monthly bills:
- Rent/Mortgage
- Electricity
- Water
- Gas utility
- Waste management
- Cable/Direct TV
- Internet
- Food
- Gas for automobile
- Insurance for home
- Insurance for automobile
These are the basics. Other considerations babysitting costs (if any), weekly lunch allowance, clothes, house repairs, car maintenance, children’s sports equipment and membership fees, college funds, savings account or retirement fund, etc.
Do not allow your drive to buy storage units blindside you financially. Take the time to figure out what your “needs” are each and every month. The excess amount is play money, what you can afford to lose.
Did you read that?
What you can “afford” to lose. You may buy a storage unit for $275, however, after you dig through your merchandise you may not break even after everything is sold.
If you believe you will make a profit out of each and every storage unit you purchase you must have the Midas touch because in reality that’s a myth. Most likely you will lose money before you make money.
Prepare a financial game plan and auction hunting will be for you a fun and adventurous yet affordable hobby.
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