How much is your stuff really costing you?

When it comes to saving money, buying less stuff is an obvious choice. The less money you spend to acquire new things, the more money you will have left in your bank account at the end of the month. It’s that simple, right?

Yes, and no.

While it’s true that foregoing a purchase will save you money, cutting out that initial purchase price is not the only benefit. There are so many other costs that we are sparing ourselves from by making that decision.

Each time you make a purchase, there is an upfront cost, the amount of money you fork over to take that shiny new gadget home with you. But it doesn’t stop there. Once that ‘thing’ becomes one of your possessions, the costs continue.

Here are 7 hidden costs of owning more:

Number 1: Interest

Did you use your credit card for that recent purchase? If so, be prepared to tack on an extra 20% (or more) in interest each month while you pay it off.

Spread the payments over 5 years, and it’ll cost you nearly 60% more than the original purchase price. That means you’ll be paying an extra $60 in interest for every $100 you had originally spent.

Take 10 years to pay it off, and the interest fees jump to 130% of the original purchase price. To put that in perspective, for a $100 purchase you would end up paying a total of $230 with interest fees.

Number 2: Maintenance

Maintenance is another often overlooked expense. We focus so much on saving for the initial purchase that we typically forget to consider the long-term costs associated with ownership.

When you buy a car, there will be oil changes, windshield washer fluid, and tires to replace. Purchase a home and you may have a roof to repair or a furnace that needs to be replaced.

Nearly everything we buy will require some form of maintenance. And while they won’t all be big ticket items, these costs can add up and become significant over time.

Number 3: Storage

If you’re like the other 38 percent of Americans who have storage units, then your stuff quite literally has a price attached to its storage each month. But even if you don’t, there’s a good chance it’s still costing you money.

Many of us pick a place to live not just for our personal needs, but for the needs of our stuff: an attached garage, extra closet space, or simply more rooms to cram it all into.

If you had less stuff, could you live in a smaller home? Have you ever moved to a more expensive place to get some “extra space”? If you stopped acquiring so much stuff, perhaps you could go back.

All of our stuff is taking up space, and space is not free.

Number 4: Accessories

One of the most insidious costs associated with buying something new is the domino effect of new purchases that can come with it.

Buy a new pair of shoes and you may suddenly feel the need for a new belt. Pick up a new kitchen stand-mixer and you may soon find yourself longing for the pasta attachment. The list goes on. No matter what you are buying, there always seems to be something else that could go along with it.

In fact, I once knew someone who bought a new camping trailer for their family.

They already had a trailer but wanted something with a bit more space.

A week later they were picking up a brand-new truck to tow it. And it didn’t end there. Apparently, there are countless opportunities to upgrade your camping experience – from beverage holders to disco lights and everything in between.

If you do decides to buy something new, pay close attention to your spending habits afterward. Thanks to modern-day marketing, the opportunities to accessorize will seemingly present themselves without you even needing to look for them.

Number 5: Time

Time is one of the most valuable resources in our life. But if you’re pursuing financial independence, you probably already know that. Time can be used to earn money, build connections, stay healthy, and pursue literally any other endeavor we deem important.

So when it comes to spending our time, we need to make sure it is truly worthwhile.

With material goods, there is almost always a time cost. It may not always be obvious, but time is required not only to acquire all of this stuff but to keep it. We spend time going to the store to make a purchase. Then, we come home and spend time learning how to use it or care for it.

We find a place to store it, and then we spend time organizing and reorganizing it each month. And then, finally, we spend time getting rid of it. The drain on our time doesn’t end until it’s out the door.

Number 6: Energy

At first, this may seem equivalent to time. But our physical belongings don’t just require time, they also drain our energy.

You have to take your car in for an oil change, put your winter tires on – and then switch them back to summer tires – and top up your windshield washer fluid. You also have to keep your insurance up-to-date, make your car payments, and so on.

Yes, all of these tasks require your time. But they also require your attention. You don’t just wake up and do these things when you’re supposed to – you have to remember to do them.

Owning more stuff adds to our mental load and takes our attention away from the more productive endeavors we could be focused on.

Number 7: Opportunity

We can’t do, or have, everything in life. At some basic level, we all understand this. But it doesn’t stop us from putting our immediate wants in front of our goals.

And this doesn’t just mean your retirement savings. Yes, that is an important goal, but there are other more immediate impacts on our life each time we spend money.

Have you always dreamed of going on a European vacation but never seem to have the money for it? How would that change if you bought less stuff?

Do you really need the latest and greatest fashion, or could you get by just fine with the closet full of clothes you already have?

If so, you could nearly eliminate your clothing budget and funnel that money into a travel account. Within a couple of years, that vacation may not seem so far away.

Most of us have at least something in our budget that we could cut out to make room for a more important opportunity.

So there you have it, the 7 hidden costs of owning more. Have you ever been surprised by one of these costs after making a purchase? Leave us a comment and let us know how it’s changed your spending habits moving forward!

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