Storage Units: What Does It Really Cost?

Stuff, stuff, and more stuff! The comfort of consumption today can lead people to mount up so much stuff that the median 2,500-square-foot U.S. home won’t accommodate it all any longer. Paying for storage facilities has become a norm. It always appears to be an easy solution when you are desperately in need of short-term space but what does it cost you in the long run?

There is one common false impression that fools us out of a lot of money here. We believe that by storing our old furniture, clothing, and other belongings, we will save money by not having to buy them again in the future. For example, let's store that old crib and save it for our grandkids. It was several hundred dollars and it’s in great shape. However, we haven’t thought it through very well or for very long because we could end up paying enough to buy several rooms of furniture after storing it: way more than the cost of a crib. We believe by not having to buy those items again, you know, in case we need them in the future, it’s worth paying a monthly storage fee. However, the truth is, you will spend more on keeping these items than you think.

I know, I know. You’re going to argue that you don’t have the room in your house. Here in Arizona, they rarely build basements and the attics get extremely hot. Even our shed has turned plastic storage tubs to brittle shards and clothes into dust. We don’t have a lot of options. Storage units seem to be the answer. Let's take a closer look.

There are few factors that determine the price of storage units. These factors include:

• The size of the unit
• The location of the storage facility
• Climate control
• The structure type
• Security
• Rental Agreement

According to a provider of consumer information “CostHelper”, the average national storage costs are, depending on location:

• $40-$50 per month for a 5-by-5-foot unit
• $75-$140 per month for a 10-by-15-foot unit
• $115-$150 per month for a climate-controlled 10-by-15-foot unit
• $95-$155 per month for a 10-by-20-foot unit
• $170-$180 per month for a climate-controlled 10-by-20-foot unit
• $225 per month for a 20-by-20-foot unit

Compare your monthly expenses with the estimated (or existing) cost of a storage unit. Storage unit payments can be equal to weekly grocery bills or sometimes even a monthly car payment for many households. You might even afford to rent or buy a larger home with an extra room or garage you can use for storage instead but then we might begin to call you a hoarder. Just saying.

An expense like this would offset any savings you might recover or earn by selling or even hanging on to all your stuff IF your stuff was really worth holding onto in the first place. We’ll get back to that in a moment. When you pay for extra storage to keep items you are not using, it doesn’t usually make any financial sense, especially if you fall within the 69% of Americans who have less than $1,000 in savings. Then it’s just irresponsible spending.

Common Reasons (or Excuses) for Using Storage Units

You might consider storage units for a number of reasons. However, at the end of the day, you pay for the convenience of burying your unneeded junk into a dark hole. The circumstances under which you would be bound to endure high prices of storage units might vary but they most likely fall under one of the following categories.

1. Being too attached to your items: Some people find it difficult to let go of things. If you are the kind of person who can’t let go of what others see to be useless, you might find it important to rent a storage unit in order to house all your precious items (I used the word “precious” so you might be triggered into picturing Gollum holding his Precious). I understand, baby clothes hold memories but I urge you to exam how often you will really go through and see those items. Isn’t it the memories themselves that are precious? Take pictures and donate or sell the items. A picture now just takes up a tiny bit of memory on your phone and you won’t have to pay hundreds a year to store it.

2. The thought of needing it later: This is where my husband fits in. There are a million tools in the garage that he used once and will not use again, yet we have to store them all for a lifetime. I have our old kitchen table stored because I might need it in our next house, which is silly. It’s huge. What’s the difference here? The difference is, these are stored in my house. If you are paying for a storage unit to store these items, you're wasting your money. You’re probably not going to use them, at least not in the near future. They aren’t easy to get to and it’s not very convenient. How many times have you used the item in the past year or two tells you a lot. If you haven’t used it once in a year, you might want to sell it. If you haven’t used it for several years, get rid of it.

Consider the low end of the national average, which is about $75 every month before tax. Storing things you don’t need and don’t use means you’re spending about $900 every year for that storage unit. Plus, there are other fees and taxes most facilities charge. If the downsizing is not temporary, it’s better to make money selling the tools and tables or other stuff that doesn’t fit in your new abode, instead of spending money storing them. If the downsizing is only temporary, consider selling the items and setting aside that money plus the money you would spend monthly for the storage unit. By the time you’re ready to buy, you might have the money to buy an even nicer table or crib or whatever. Right?

3. I am too busy to throw a yard sale: I am busy, too. Busy people get the most done. We are excellent at creating blocks of time when it’s worth our while. Think about the cost of storing your hardly used items. After just a few months, you are already looking at hundreds of dollars in storage fees rather than having those same hundreds of dollars in your pocket. Isn’t it worth blocking out some time for a weekend yard sale? You’ll be saving money on the storage and making money on the items. It’s a win-win! Plus, it’s a great time to get together with friends and have them bring their stuff over to sell.

4. I am too busy to get rid of my things: That’s pretty much the same excuse. If you can’t make the time for a yard sale, you can certainly make the time to donate. You already realize storing your belongings in a storage unit for the foreseeable future is expensive month after month. Rates can go up radically depending on your location. Donating is better than storing. At least you can write it off on your taxes. Some places even pick-up. Just remember to take a quick picture of your donation and write out a list of the items donated. I put all the pictures onto a disk and place them in that year’s tax file. No yard sale? Donate!

Warning! If you don’t listen and you get a storage unit, set it up on automatic payments. Why? The worst scenario is you lose it all. If you forget to pay for your unit, your things might end up in the storage unit auction as a result of the cancellation of your contract. If you aren’t careful, you could lose all your belongings and lose the money you’ve invested in them, as well.

Invested? That’s right. I want you to think of this money as an investment for a minute. That baby crib (or tools or whatever) that you paid $400 for is the investment. Is it worth you paying even $50 a month for one year to keep? At the end of a year, you’ll have invested $600 into that $400 crib. Is it now worth $1,000 to you? It better be. Because if you decide to rent a storage unit, you are either investing in the value of those items or you’re throwing money away. It’s that simple.

In conclusion, decide to make a plan. Block out time to spend decluttering your house, your garage, and your storage unit. Be ruthless! These items are costing you space and money to store. They either “STAY” and get used, “SELL” and make money, or “DONATE” and get passed on to those who can use them now. You decide. If you decide to have a sell pile, set aside that weekend for the sale and a charity to pick-up leftovers on Monday. Once your house is free of clutter and storage, you will feel free, as well. Now, don’t go buying more stuff!

You may wonder why I’m being so rough on you. Well, the main reason I wrote this article is that six months ago we sold our 5,000 square foot house. We have one teenager left at home and it was time to downsize. No, we didn’t get a storage unit for all our stuff…we got two! Seriously, we had to get an entire storage unit for just our Halloween Decorations that were stored in our barn PLUS another one for all the stuff I couldn’t part with for sentimental reasons. Okay, stop laughing now. After 6 months, I decided to see just how much this was costing me and it was enlightening, to say the least. So, what is the solution? Garage Sale! The bassinet and kids’ clothes will be out of style or useless after being stored. It would be better to sell and donate items than to pay for these storage units.

I hope this has helped you, too. It was a tricky slope and I fell into it, too. Let’s pull ourselves out and get back on track. If you’re interested, I also did an analysis of what that monthly expense will yield in my retirement savings. I’ll post it below for you. Blessings in Abundance!

Michelle R Russell

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