This is a guest article by Jennifer Calonia, Junior Editor at GoBankingRates. In the article, the author offers suggestions for making spring cleaning work for you.
We are officially one week into spring, and many are shedding winter stagnation for more productive ways to save money — and earn money — using items around the home. Spring cleaning gives Americans an opportunity to revive their finances by playing salesman with forgotten and unwanted stuff.
Did you stumble upon a crock-pot from a Black Friday sale that you’ve yet to use? Turn impulse buys into cash in your pocket, instead of letting appliances and other belongings go obsolete or outdated. Finding items for sale in the garage or attic now can help you make as much back on your purchase as possible.
There are many ways to sell spring cleaning finds that are straightforward and take little time. Some of the most important decisions to make when selling your stuff is knowing what to sell, how to sell it and for how much — establishing these three critical factors can determine how much money ends up back in your bank account.
Have items for sale? Here’s what to do
Your selling approach can impact how much you earn on a specific product, so following the right game plan is crucial:
- Selecting items to sell. When deciding on which items to sell, it is helpful to create three different piles for donations, yard sales and online sales. Just because you found an abandoned tea bag plate in the cupboard doesn’t mean it’s worth the time to post it on eBay and absorb packaging fees for a $5 sale. Items like a partially used spiral notebook, crayons and well-worn clothing are better served in the donations or yard sale bins, while big-ticket items like an iPhone, leather jacket, new running shoes or a coffee maker will bring higher sales online.
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Choosing your audience. There are many ways of communicating to buyers that you have items for sale. Each of the most popular resale options have their pros and cons, so determine which is a practical selling approach for you, depending on what you’re selling and your resources.
- Yard sales: Like other selling avenues, yard sales are typically hit-or-miss. A benefit of hosting a yard sale is that you’re able to negotiate prices with buyers in-person and can showcase your merchandise in one location, on one day, to get the sale done at once (ideally). The big disadvantage to yard sales is that it eats up a lot of your time. Not only do you have to stand guard on your lawn for potential shoppers, but advertising your sale is a time-consuming, yet necessary, factor for success. This includes posting your yard sale to the classifieds or Craigslist, making street signs and creating price tags or signage for your items.
- Craigslist: This community listing is a great place to sel big items like a snowboard or toaster oven, when you don’t want to spend money on shipping. To save the most money and keep the profits of the sale in your wallet, try dealing with buyers in your immediate location so you don’t lose money on gas. While Craigslist is a free service, sellers must be prepared for possible haggling (unless the post clearly states the price is “firm”) and be able to meet the buyer face-to-face in a public location.
- eBay: For over a decade, eBay has been a common selling platform for those with either valuable items for sale, or are selling new items like unwanted gifts. For example, I purchased two new brake pads at $85 each, but sold my car before I got a chance to install them. eBay was a better audience for this type of sale because there’s a higher chance I could get close to my original purchase price, and shipping costs were not budget-blowing. When dealing on eBay, however, there are a few basics to keep in mind for a successful transaction and sale.
Name your price
Before setting up a yard sale or creating a post online of items for sale, conduct a quick search online to see how much similar items are being priced. Remember, there is a difference between being flexible and being hustled. By knowing the price range of each item you’re selling and the lowest amount you’re willing to accept to part with your goods, you are setting yourself up for a fair deal.
Keep in mind yard sales and Craigslist deals will likely present the most back-and-forth price negotiations, as eBay allows sellers to set a reserve price if necessary, which is why you need to have a lowest price-point established ahead of time.
All it takes is a free Saturday to get your spring cleaning underway. Start fresh this spring with a tidy home and a robust savings account by parting with the clutter in your life.
Last Thursday, the Senate failed to pass a bill that would again extend unemployment benefits. Rather than continue haggling between Democrats and Republicans for another round of changes to the bill, the Senators will likely drop the issue.
The bill also contained an extension to the homebuyer tax credit, a benefit that officially ends on June 30, 2010 for homes purchased by May 31.
This is the beginning of the end for economic stimulus from the government. Meanwhile, the Obama administration at the G-20 summit is warning other countries not to end their own stimulus plans too quickly, an approach we might not be able to take ourselves.
Car companies want you to buy their products on impulse. They would, generally, prefer that the step of thinking is removed from the consumer’s process. This is evident in the commercials you see around the holidays in which a spouse is surprised when he or she notices a gift wrapped in a large red bow sitting in the driveway or in one maker’s “sign, then drive” promotion, prompting customers to believe that the car-buying process is better when it takes thirty seconds.
Buying a car is a significant financial decision, and it can affect your financial stability for years. The process should not be taken lightly. It’s important to start at the beginning by asking yourself a series of questions.
What are my needs versus my wants?
We haven’t reached the point of discussion whether to get the convertible or the sedan. First, we have to determine whether we need to buy a car in the first place. There are many other options to consider.
Are other forms of transportation available? Although I was living in the suburbs, I took a bus and a train to my job a few years ago, and could use public transportation to get wherever I needed to go. Bicycles are less expensive to own than cars, and walking is yet another choice.
- Is carpooling an option? While usually viewed as inconvenient, the thousands of dollars you could save makes carpooling attractive.
- Can my spouse and I share a car rather than buying a second? You may be able to coordinate schedules so one can drop the other off and pick the other up at work.
- Will a program like ZipCar suit my needs? If you don’t need to drive constantly, you may be able to sign up for a car sharing service. You can reserve a car for only the hours you need one.
- Can I get more out of my current car? Modern cars can easily last beyond 200,000 miles if properly maintained. Put off a purchase as long as possible, and don’t succumb to the desire to trade in for the latest model every few years.
If you can determine you don’t need a car, you may want to stop here. The process is complete for you. On the other hand, if you do have the money available, you may be willing to pay for convenience. You don’t need a car, but you want one, and that will cost you. So carefully consider saving as much as you can on the purchase.
Should I buy a new car or a “pre-owned” (used) car?
Read the full article →
Yesterday, I signed up for my second photography class, meeting every Saturday afternoon for eight weeks starting in January. I learned much from the first class I took last summer, and I have been looking for a more advanced class. My photography skills have a long way to go, and with what I consider two full-time jobs it is difficult for me to find time to practice. My goals with the class are to work on finding the “art” in the world and capturing it the way I want in the camera.
Here are some articles worth reading this weekend.
You Can Negotiate Anything. The focus of this article on Get Rich Slowly, Herb Cohen, was interviewed in September for the Consumerism Commentary Podcast. The article focuses on the main ideas behind Herb’s book, You Can Negotiate Anything.
How to Cook More, Eat Out Less. This is a perennial goal of mine that never seems to gain much traction. I feel constrained for time now, and cooking seems to take time away from me. Ordering dinner in is always quicker, particularly when I can place my order online in one browser tab while I’m writing an article in another. On this topic, also check out Save Money: Dining Out vs. Groceries Analyzed at Debt Free Adventure.
Money CAN Buy Happiness. Travel and entertainment can be expensive, so having money helps build experiences that enrich you life. But happiness has many forms, and there are plenty of experiences that can bring happiness without breaking the bank. What makes you happy?
The Consumerism Commentary Podcast is being featured on Charles Schwab’s Roth IRA home page. The featured interview focusing on Roth IRA conversions in 2010 with Schwab’s Bryan Olson was published here in September.
Don’t miss these articles:
Have a great weekend!
P.S. The Carnival of Personal Finance is looking for bloggers who would like to host the weekly event in January, February, and March 2010. If you are interested, fill out the short hosting request.
Best of Consumerism Commentary, September 2009
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