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3 Easy Ways to Make Money from Your Junk

3 Easy Ways to Make Money from Your Junk

You’re surrounded by clutter, and you wish you could wave a magic wand to make it all go away.

I don’t have that kind of lifehack (yet!), but as someone who’s become a pro at minimalism and creating an adventurous life on a budget, there are 3 easy tips I can share to help you quickly make money from your junk and create more room in your life.

Best of all, none of them require a lot of work.

Reverse Birthday Party

When I was 39 and on the verge of selling everything our house to travel around the world, I didn’t know how to get rid of those things I no longer needed but still really loved, such as:

The buttery leather coat

The giant leopard cocktail ring

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The colorful silk scarf

The black stiletto boots

The red wool beret

You probably have things like this, too, maybe items you love and are good quality but you never, ever use anymore. They just don’t fit who you are now (or maybe they never did). But you can’t figure out how to get rid of them so they just sit there, taking up space and cluttering your life.

The solution I came up with was a Reverse Birthday Party. In honor of my 39 years of living, I picked 39 of these great items and made tags describing why I bought them, loved them, and needed to release them. They were displayed on a metal shelf in my living room.

Then I invited about 20 friends over my Reverse Birthday Party, requesting that they shop my closet and contribute to my upcoming trip rather than buy me a gift. Add some wine and food to the mix, and you have the makings of a very good time.

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My friends were instructed to write their names on the tag of any item they wanted, and if more than one person liked it, we had a runway ‘style off’ to the sound of Carly Simon’s You’re So Vain. Whoever wore it best got to keep it.

As my friends collected their items, they dropped a donation into our trip fund box, took a picture with me and the item, and then waltzed that possession right out my door.

It was a great way to release what I no longer needed, make new memories with friends, and have a permanent reminder of the fun evening with the digital photos, which don’t take up any physical space.

Indoor Yard Sale

It’s exhausting to even think about putting together a yard sale, and if the weather’s turned cold, this usually isn’t an option anyway. But there are times when you really want to get rid of big things like furniture, artwork, accessories, and linens.

When we were about a month away from closing on the sale of our home, we invited several friends over for an indoor yard sale. It took almost no planning or set up on our part, and we were able to continue using the necessities until the day we moved out of the house.

First, we invited friends who were in need of household items. These included a recently divorced friend, a couple buying their first home, a couple who had just moved in together, and a couple who bought some land to build a small retreat in the mountains.

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When they arrived, we fed them snacks and drinks to create a party atmosphere. People are likely to buy more when they’re having a good time.

Then we gave each person/couple a sheet of colored sticky dots. They took these dots around the house and put them on the items they wanted. After they were done shopping, we simply went around with them to talk about the group of items and negotiate a price and a date for pickup.

It was incredibly easy because we didn’t have to price or move anything, and we didn’t have to give up our couch or dishes while we were still actively using them.

If you’re getting ready to move or downsize, this is the perfect way to get rid of what you no longer need in a comfortable setting with people you trust.

Craigslist Store

Lots of people sell odds and ends on Craigslist, but by creating a staging area for all your Craigslist items, you can sell more of them in less time.

We began saving and decluttering for our travels 2 years before we left. During that time, we had a goal of selling at least one thing every week. We knew it would be less stressful and more profitable to do it that way instead of waiting until the few weeks before departure.

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What we didn’t realize was the power of a Craiglist Store. Now, there isn’t an official store, so don’t go looking for it. The store I’m talking about is the one you create in your own home.

  1. First, find a space in your home you’re willing to let strangers see. We created our staging area in the small front room by the door.
  2. Then use this space to attractively display all the items you have for sale. Think of it in terms of a store display and show how pillows, rugs, and other items go together.
  3. When a buyer comes to buy the camera, frame, or toaster you have advertised, make the transaction in the room that holds your Craigslist Store. Let your buyer know that all those things are for sale, and you’ll be surprised how often they buy more than what they came for.

We sold thousands of dollars of items this way, and we met a lot of interesting people who were curious as to why we had a Craigslist Store in our front room in the first place.

Your junk is not doing anything for you right now except taking up space in your life. Try one of these methods for getting rid of what you no longer need and you’ll have a nice sum of cash to fund something that fits you perfectly.

It sure beats paying the price for keeping what you no longer need.

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Last Updated on July 10, 2020

The Definitive Guide to Get out of Debt Fast (and Forever)

The Definitive Guide to Get out of Debt Fast (and Forever)

Debt can feel crushing, like a weight that is always weighing you down. Looking at those numbers, it can feel as if you’ll never get out from under it. However, if you really want to learn how to get out of debt, it is possible with a great deal of focus and self-control.

Getting out of debt isn’t impossible. Like any big goal, all that it takes is an action plan to identify where you are and creating a plan to zero out your debt.

Identifying All of Your Debts

The first part of paying off your debt is getting a complete picture of what you owe. When you have everything written out in front of you, it makes it much easier to create an action plan. Depending on how much you owe, it might also help you realize it’s not as bad you might have originally thought.

Here’s how you can get started identifying your debts:

1. Own Your Debt

Before you start identifying all of your debts, take a moment to process that you have debt but want to get out of it.

Forgive yourself for any past mistakes, missed payments, or overspending. It might be painful to accept how much debt you have at first, but you must own it.

2. Make a Debt Tracker

It’s astonishing how few people ever created a tracker to understand their total debts. Most likely, it comes from not wanting to accept the guilt of having debt, but, if avoided, it can make it nearly impossible to get out of debt.

Open up a new Google or Microsoft Excel sheet and list out all of your debts. Start with the name of the creditor, interest rates, total balance, loan term length (if any), and the minimum amount due each payment. This will include student loans, credit cards, and any other type of debt owed.

3. Get Your Debt Number

Once you’ve made your debt tracker and taken the other steps, identify your total payoff number. This is crucial, as you will have a starting point and a clear goal that you are trying to achieve.

Prioritizing Your Debts

All debt is not created equal. It’s imperative to understand that there are different types of debt.

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1. Understand Bad and Good Debts

Bad debts are usually paying for things you want instead of always need. While there might be some emergencies that max out your credit cards, often times it’s excessive spending[1].

There are three main types of bad debt:

  • Credit Card Debt: The average American household owes over $16,000 in credit card debt!
  • Auto Loan Debt: According to CNBC , the average auto loan in the US is $30,032!
  • Consumer Loan Debt: Consumer loan debt isn’t as common as credit card and auto loan debt, but it’s still considered bad as interest rates are usually between 10-28%.

Good debt is identified as investments in your future. Here are three common types of good debt:

  • Student Loan Debt
  • Mortgage Loan
  • Business Loans

2. Decide Which Debt to Pay off First

Once you know each type of debt and their interest rates, you can begin to pay off debt quickly.

Focus on paying off bad debt first, regardless of if it is a credit card or auto loan. Start by paying off the loan with the highest interest rate first.

If you have several credit cards with different interest rates, you want to focus on the one with a higher APR. You will actually save more money by eliminating the card with the highest interest rate.

3. Don’t Pay the Minimum Amount

Paying the minimum amount digs you into a hole as interest rates will offset your payment. Even a small amount more than the minimum can help you pay off debt much faster.

Removing Obstacles to Pay off Debt Quickly

Creating a debt tracker and prioritizing a plan is simple, but avoiding temptation can be difficult.

1. Set a Reminder to Track Your Debt

“If you can’t measure it you can’t manage it.” -Peter Drucker

It’s so important to track your debt to ensure that you get it paid off quickly. Similar to working out and measuring your results, you need to track your debt constantly. Start with a weekly reminder, where you sign on and log your updated number. Did you increase, decrease, or stay the same?

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Regularly tracking your student loan balance can be incredibly motivating, as well. You will get a huge confidence boost each time you see your total debt amount decreases.

Set weekly and monthly goals so you can have short term wins and keep the momentum going.

2. Hide Your Credit Cards

If your biggest debt is credit cards, you need to eliminate temptation and remove them from your wallet.

Some people have gone to extreme measures by freezing their credit cards. Why? This would create an ice block around your card, which would require you to chip away at it slowly. This will give you time to think if it’s the best idea to buy that thing you’re about to buy.

3. Automate Everything

Willpower can be a huge downfall to paying off your debt. By automating your bills each month, you will ensure that willpower isn’t involved.

4. Plan Ahead

Getting out of debt will require some sacrifices, but with enough planning, you can make it work.

For example, if you know that you have a friend’s birthday or family dinner coming up, plan ahead for the costs. Whether you need to cut back on spending the week before, pick up a side job, or meet them after dinner, do what is needed.

5. Live Cheaply

The only way to get out of debt is to make some sacrifices on your spending habits. Find ways to save money each month so you can apply that amount to your outstanding debts. Here are some ways to save money each month:

  • Live with roommates
  • Cook dinners and prepare lunches for work instead of eating out
  • Cut cable and choose Netflix or Amazon Prime
  • Take public transit or bike to work

Finding the Lowest Interest Rates

The higher your interest rates, the harder (and longer) it will take you to pay off any debt.

If possible, you want to find ways to lower your interest rates to help get out of debt quickly. Here’s how you can get started:

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1. Maintain a High Credit Score

Your credit score will have a large impact on your ability to refinance your loans and receive a lower interest rate. If you have a low credit score, it’s unlikely you will be able to refinance your loans. Use these credit tips to increase and maintain an excellent score:

  • Never miss a payment
  • Don’t exceed 30% of your credit limit
  • Don’t sign up for more than one card at once
  • Limit hard inquires, like auto-loans and new credit cards
  • Monitor frequently with free credit-tracking software

2. Find Balance Transfer Offers

Start by opening a free account on credit.com. Credit.com offers you the chance to open a free account and see what type of balance transfer offers you can receive. Some of your existing credit cards might already have 0% or lower APR balance transfer offers available.

Contact each of your credit card providers to ask about lowering your rate for a one-time balance transfer offer[2].

If you do take advantage of this option, make sure that you use a balance transfer and not a cash advance. Cash advances have a ton of high interest fees (15-25%, depending on your credit card) and will only compound your debt problem.

How to Get Rid of Debt Forever

Setting up a plan, removing temptations, and getting the lowest interest rates is the first step to get out of debt.

1. Keep Monitoring and Adjusting

Once you have a plan, don’t get comfortable. Track your debt payoff plan and make the necessary adjustments when needed.

Monitor your credit scores with a free site like CreditKarma. The higher your credit score climbs, the more likely you will be to secure a new, lower-interest loan.

2. Earn More Money

There are only so many ways to save money. Instead of clipping another coupon or making sacrifices for your morning coffee, find ways to earn more money!

Think about it…it is much easier to find ways to earn an extra $1,000 per month than find $1,000 to cut from your budget.

Here are some examples of ways to earn more money:

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Talk to Your Boss

Have a conversation with your boss about current salary and/or commission rates. If you’re not satisfied or want a change, don’t be afraid to look around at other positions. Some of them might even have a student loan debt reimbursement plan!

Start a Side Hustle

This could be coaching students on the weekends, driving for Uber, or taking paid online surveys. There are tons of ways to make money outside your 9-5. Now that you have a clear plan to pay off your debts, you’ll be more motivated than ever to figure out creative new ways to earn money.

Build an Online Business

There are so many websites and blogs that earn money from ads, affiliates, and other online products. Find your niche and get started.

3. Celebrate Your Wins

As you progress in your debt payoff journey, don’t forget to celebrate your wins. You need to always reward yourself for the hard work and discipline that is required to get out of debt.

While you shouldn’t celebrate so big that it increases debt, make sure to factor in little rewards to keep you motivated.

4. Set New Financial Goals

Eventually, with a plan and these steps, you can rid yourself of your debt. Once you do, make sure to celebrate your monumental achievement, but don’t stop there.

Now, you can focus on acquiring wealth and increasing your net worth. Set new financial goals so you have a new target to aim toward. Here’s how to set financial goals and actually meet them.

These could be anything now that you are debt free! Think about where you want to travel, buying your first home, or saving for your future retirement. Just like before, make sure that your goals are specific, measurable, and achievable.

Conclusion

Congrats, you can now set a plan in motion to finally pay off your debt quickly (and hopefully forever)!

Remember, if you want to get out of debt quickly, it’s not always easy. Just like any big goal, there will be sacrifices, challenges, and problems to overcome.

More Tips on Getting out of Debt

Featured photo credit: Pepi Stojanovski via unsplash.com

Reference

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