Not too long ago I met someone who told me how he had downsized from a 3000 square foot house, which seems absolutely huge to me right now, to one almost half that size. When I asked him what he did with all his stuff he seemed kind of puzzled.
Did you sell it? Give stuff away? What did you do?
He told me he got rid of some stuff but he also shared with me that his house and garage are pretty full as is the shop he works out of. Then he told me he also has four large storage units "crammed full of stuff".
I asked him what he plans to do with all that stuff and he told me nothing because it is all "assets". I'm not sure I agree with that.
According to the dictionary an asset is described as "a useful or valuable thing" "good or important enough to justify worth or value, as in money". So in layman's terms it is only truly an asset and has value if it is useful, as in it would be desired by someone who wants to pay money for it. If not, then in my opinion, it is just stuff.
I know from my own personal experience the tendency or drive to hang onto objects that may be of value or usefulness. If not now, then maybe some other time. As a result I stored a lot of stuff. After a series of yard sales and Craigslist posting I discovered what my so called treasures were truly worth.
A lot less than I thought and a whole lot less than I originally paid for them.
Based on that experience alone I don't think I could every justify the expense of keeping a storage unit, let alone multiple ones, or the time involved just packing up that much stuff, hauling it over there and cramming it inside the unit.
In this particular gentlemen's case the stuff in storage is not being used and it costs a small fortune every month in rental fees to keep it. Currently he has no specific plans for any of this stuff. To my way of thinking you invest that is not an investment as much as it is a financial drain. While he no longer has the higher mortgage payment every month he has actually made it up in storage unit costs, therefore no savings.
Just recently he told me he acquired another rather large object in the form of a vintage automobile in desperate need of restoration. He then admitted that he has neither the space to store it or the time to work on it because he has so many other projects going. To my way of thinking, and I used restraint here, why did you buy it?
Sounds like complete madness and chaos to me. At this point I can't help but feel he doesn't own all this stuff as much as it owns him. What are your thoughts?