This is Rule 6 in my 10 Rules to Eliminate Debt and Change Your Life
If one of the reasons you are in debt is a collection of toys like a boat, motorcycle or RV, you should really give a lot of thought to selling them and buying new ones after you are debt free.
The maintenance costs, including fuel and storage, will gnaw away at even the strongest budget plan and hold you back.
This is especially important if you plan to hang on to that new car and car payment.
So why sell the toys?
Why? Because if you are facing tens of thousands in credit card debts and student loans and throw in a few cars and a boat, soon you are pushing six figures, and that’s not including the mortgage. Even if you use debt consolidation you will still need to downsize.
It’s a maxed out lifestyle within a maxed out system.
If you aren’t concerned about getting out of debt, this isn’t for you. If you think you can slowly chip away at a mountain of debt while still paying for a massive RV and matching ATVs, then that is your choice to make.
But serious problems require serious solutions, and aggressive action. If done right you could be RV shopping again in a year or two.
What Else to Sell?
The purging of debt need not stop with obligations and notes. You can also sell anything in your house on sites like Craigslist or eBay.
This is a great way to bring in extra money to pay towards your debts.
I sold lamps and furniture, even a digital camera.
Remember, if you do sell items on sites like Craigslist, make sure you follow these important steps to protect yourself and your family.
Selling your stuff is not just about getting extra money to put towards your debt. It’s also a way to make a bold move to break the debt payoff plateau and give you momentum towards debt freedom.
Why Is This Hard?
Being able to let go of past costs – known as sunk costs – is one of the fundamental money challenges. Think of a stock trader cutting his losses in anticipation of a big downswing. He'd rather lose a couple thousand dollars than his whole egg.
That's how you should be. If you can ignore sunk costs and focus your decisions on the future and what is right going forward, then you have conquered the emotional pull of money and moved yourself closer to financial independence.
Keep in mind that financial freedom not only means having enough money to be independent, it also means building a relationship with money where YOU are always in control.
Debt is Not the End of Fun
Debt is not the end of fun, but it does delay it. The good news though, is that the fun that comes once you are debt free is truly yours. You worked and saved up for it and don’t owe anyone. Free and clear.
You can buy another fishing boat, this time without guilt. Or another motorcycle. Or another expensive vacation.
It will take time to get that point. Selling your expensive items means it won’t take forever.
Getting out of debt is going to take sacrifice. If you can't sacrifice and put your needs before your wants, you will fail.
Like I said, this is not just an exercise in getting more money – it's an exercise in making adult choices to take charge of your personal economy.
10 Rules to Eliminate Your Debt and Change Your Life
6. If You Don’t Need It, Sell It
7. Save Monthly for Large, Anticipated Expenses
8. Set Aside Some Money for Fun
9. Pay Off Debts Before Investing
10. The Goal of Work is Retirement