Why are You Wasting Money on a Storage Unit?

Posted in Savings Account • August 8, 2013

storage facilities

The comfort of consumption can push people of all ages to accumulate so much stuff that the average 3,000 sq.ft. U.S. home can no longer accommodate the stacks of Pulp Fiction posters, specialty kitchen appliances and IKEA bookshelves that have amassed. Paying for storage facilities may seem like an easy solution when you’re in dire need of short-term space.

Reducing clutter from your life may seem like a no-brainer, but many consumers invest these storage facilities believing that the goods stored within will lead to savings down the line — whether in the immediate or distant future.

The Self Storage Association says that approximately 7.0 sq.ft. of self storage space exists for every person in the nation and that “it is physically possible that every American could stand — all at the same time — under the total canopy of self storage roofing.” Further, one in 10 U.S. households used self storage in 2007, which equates to an astounding $10.8 million households.

However, despite the number of households actively holding their belongings in storage for some hidden value years into the future, the up front cost of storage unit prices are very rarely worth the return.

Self Storage Unit Prices

The common misconception is that by storing old furniture, clothing and other belongings, you can relieve your savings account by not having to re-purchase these items when (or more appropriately, if) you need them in the future. Unlike storing extra belongings in your home’s attic or garage, though, keeping units at storage facilities costs you extra money.

Storage unit prices are determined based on the size of the unit, the location of the storage facility and other special storage unit features. Average national price ranges can become very costly per month:

  • Small storage unit (5 ft. x 5 ft.): $40 – $50
  • Medium storage unit (10 ft. x 20 ft.): $95 – $155
  • Large storage unit (20 ft. x 20 ft.): About $255

The most common storage unit size that households occupy are the medium storage capacities, which can hold enough items to fill three rooms in a house. Considering that Americans often pay for years of storage space, the convenience that this service provides can lead to thousands of dollars in losses, not including specialty storage features like climate control that costs about $100 extra per month.

These expenses combined equate to another car payment or monthly grocery bill for many U.S. households.

Common Justifications for Using Storage Facilities

Americans opt for paid self storage facilities for a number of reasons. Ultimately, however, they pay for the convenience of being able to put years of purchases aside into a dark hole. The scenarios under which you’d be compelled to endure high storage unit prices may vary, but they usually fall into these categories:

A Love Affair with Old Collections

You may still find yourself defending your decision to purchase a frighteningly large collection of beanie babies or other kind of “collectible” that, 10 years ago, promised to make you a hefty profit.

As if spending $100 on a single beanie baby that depreciated to under $1 wasn’t enough the first time around, you’re still hoping that by letting your collectibles stick around, they’ll be worth something 50 years from now. While that may be the case (chances are it’s not), that bet is still incredibly risky and likely not worth the thousands of additional dollars you’ll spend on storing these valueless pieces for the long-term.

A Temporary Housing Arrangement

If you’ve moved into a smaller home, but feel the need to keep the dining room set that doesn’t fit in your new abode “just in case,” you’ve probably considered buying into storage facilities and their pricing. The problem , however, is that all too often, rented storage facilities are left to gather dust for longer than expected. In fact, renters can easily leave units unvisited for years at a time.

Related: How to Move and Still Have Cash Left for a Security Deposit

If this situation fits your personal experience, it’s time to give your budget a break by reducing clutter from storage facilities. After all, do you really want to keep that outdated dining set from 12 years ago? That’s $21,600 you’ve spent to save money on a $700 dining room set.

The Yard-Sale that Never Was

The phrase “you’ve got to spend money to make money” doesn’t work out in your favor with this scenario. You may have been reluctant to donate or recycle your late-80s IBM computer that you originally purchased for $500, so you’ve decided it’s smarter to keep your old junk in hopes of reselling it at a yard sale. While your frugality in trying to get at least some money back is admirable, the fact is you won’t be getting anywhere near the cost of a month’s storage unit rent for that outdated item (in all honesty, it will be difficult even finding an interested buyer considering how old it is).

Instead, host a yard sale at your home or at a friend’s yard to sell off as much as you can before you have to move or are forced to lock up your stuff in storage facilities; anything that doesn’t get sold must go to your local donation center.

“I Don’t Have Time”

By saying you don’t have time to clean out your storage unit, you’re really saying you have money to burn. And really, in this economy, only a few select people can say that with a straight face. Most Americans simply need to muster up the motivation to organize, sort, sell or do away with the belongings trapped behind storage facilities.

President of the consultant group Storage Marketing Solutions told The New York Times, “Human laziness has always been a big friend of self-storage operators, because once they’re in, nobody likes to spend all day moving their stuff out of storage. As long as they can afford it, and feel psychologically that they can afford it, they’ll leave that stuff in there forever.”

It’s easy to forget that your seemingly harmless $100 per month rental adds up quickly into the thousands, and as the years go by can turn into a devastating financial loss.

Motivate yourself into spending a day cleaning out the storage unit and putting an end to high storage unit prices by thinking about what you would do with an extra $1,000 or more a year, like take a vacation or fund an early retirement.

Photo: jarrodlombardo

After all this, ask yourself if empty space is really worth keeping you from doing what you want to do.

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