Spring cleaning is a good time to clean out some clutter in your financial life. There is money that you may be overlooking in two locations: physical items that you no longer use and ongoing services that you do not use. Together, eliminating these two frees up some money that you could use elsewhere for savings, investing, or other spending. We have fake reasons for holding onto clutter, such as, “I’ll get around to using this stuff – someday,” but you never do. If that day arrives, then buy it at that time. But until then, gather everything and sell it on Craigslist, eBay, donate it, give it away, or trash it.
Physical items that you do not use, but will “someday,” are tying up money and cluttering your life. Examples for you to consider getting rid of include:
- Sports equipment – skis, surfboard, treadmill, golf clubs, roller blades, pool table, and bicycles
- Clothes, shoes, or accessories that are out of style or no longer fit
- Electronics – old printer, monitor, camera, iPad, bread maker, and stereo equipment
- Entertainment – books, DVDs, game consoles, and music instruments
- Other – tools, toys, hobby equipment, and furnishings
Services that you may not use can be found as recurring items to your credit card or checking account. Some examples of services that you may not be using and could cancel include:
- That gym membership you haven’t used in 6 months
- TV, music, movie, and gaming subscriptions and upgrades you don’t use
- Online services such as Dropbox, LinkedIn, AngiesList, and LifeLock
- Publications such as newspapers, magazines, and newsletters
- Storage units – if you haven’t seen it in a year, perhaps it is time to let it go
There are a few companies that will identify all of your recurring payments so you can cancel unwanted services with a click. Ironically, they are subscription services with poor reviews and are difficult to cancel!
Last year, a neighbor did a big clean out (clothes and accessories in particular) and was able to donate nearly all of it. As a result, he says he received $1,600 in a tax refund for his effort. Periodically search for money leaks by: cancelling unused subscriptions; clean out your garage and house of unused items. Turn what you can into cash and then donate or trash whatever remains.