(SNN) - In a previous article we downsized your offspring to right-size your household. Today we’ll examine your hidden assets from the inside out.
Assets are things. Things are nouns. Getting overly attached to nouns can have an adverb effect on your finances.
In economics, the wisdom of crowds isn’t. The problem is that everybody generalizes and you can count good rules of thumb on one hand. Since less is more, abundance is best realized through accumulated scarcity.
In shorts, you need to shed ballast to slim your bottoms up profile. Idle things, like idle people are dumb assets.
Be honest. How many of your possessions do you use on a daily basis? Sure, some have sentimental value, but that’s what memories are for. Besides, those knick-knacks and family hair looms might all be lost in a fire for which you’re probably not even insured. You’re better off converting all that sentiment into cash and using the money to buy a better renter’s policy.
Not owning possessions that aren’t yours is the final straw in this ointment. Shedding assets doesn’t have to be painful. To ease your sense of loss, take pictures but don’t print them. Whatever you can’t garage sale can be dumped. Whatever can’t be dumped can be burned for warmth to reduce your utility bill.
Whatever you can’t sell, dump, or burn can be donated to charity. Remember: Donations are the gift that keeps giving. You can log a tax deduction and then deduct the expense of leasing back the few things you truly need. Think of this like clipping coupons, except different.
For example: Consider how much valuable space you once allocated to socks. Whether you rent or own, you were paying for that unproductive space. When you donate your underperforming hosiery to a charity like “Socks without Partners” you free up both time, space, and money. When you rent only the sock you need, only when you need it, and log this as an expense against earnings, you turn the bottom line upside down.
Following this logic, it makes no sense to have a closet full of shirts when you can only wear one at a time. This is as foolish as having more than a day’s worth of food in your pantry. An added benefit is that renting clothing allows you to adapt to quickly shifting fashion trends.
Instead of spilling red ink, you can drink it. In summary, before you reach the tipping point of no return, you must realize that even the fattest wallet can get lost in the folds of your swelling assets.
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