Goodbye, locker 1854.
There was a moment of sadness as my wife and I emptied the storage unit we rented over the past four years and walked away. A lot of family photos and mementoes were stored there, including a pair of cowboy boots my dad bought our oldest son when he was maybe two years old, a box of children’s books, hockey equipment and my dad’s old fishing net.
But clearing out our storage unit saves us $95 a month, and it closes the book on the downsizing my wife and I began four years ago when we sold our family home. The storage unit was a way to smooth the process. Having it postponed a reckoning on what to do with a lot of stuff we held on to for sentimental reasons, or because we used it infrequently.
Rob Carrick's former storage locker.Rob Carrick/The Globe and Mail
Self-storage units are an ever-booming business – just look around the cities where we live. A recent Benefits Canada article noted the investing appeal of owning commercial real estate devoted to self-storage. One aspect is that this sector is resistant to economic ups and downs. Today, expensive housing is helping the sector by drawing business from people relocating, downsizing or taking on roommates.
But, as noted in a newsletter a year ago, the cost of renting a storage unit can be as much as $300 to $400 per month. The $95 we paid each month was a fair value because it bought us time, but it grated each month when I saw the cost on our credit card bill. Eventually, we decided to get serious about ditching our storage unit.
First, and most importantly, we decided to do it in stages to ease the decision-making burden. Some camping gear came out earlier in the summer, and we found we had room for it at home. I then took home a bin of documents and either filed or shredded the contents. We had our boys grab up what they wanted, and also rearranged our storage at home to generate extra room.
All along, I took photos of what was left in the locker to help our strategizing. On the final day, we had a plan to take a few things home and donate a few others. We arrived at the unit, filled up the car and then went into the office for the final time. In about five minutes, locker 1854 became available for the first time since August, 2019.
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Rob’s personal finance reading list
Fighting the panic
A personal finance writer on the dread she feels about retiring and living off her savings. This is a thing. Some people find the transition very hard.
Housing, just for women
Introducing New Ground, a housing community in the United Kingdom exclusively for women over 50. It’s an alternative to living alone and it reminded me of an Ontario organization called Senior Women Living Together, which I wrote about recently.
Save at the pump
The best credit card reward programs for saving money on gasoline.
Six non-bargains at Value Village
A former employee of Value Village explains why you should pass on shoes, toys and four other purchases at the thrift store chain. Also, I hear the prices at Value Village are not the bargains they once were.
Ask Rob
Q: I want to rent out an extra bedroom of the house I live in and own. Do I have to declare the tenant’s rent money as income? What other considerations like insurance should I keep in mind?
A: Must you declare rental income? For sure. Here’s a guide to income tax considerations for rental properties, including deductible expenses.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
We want to hear from you
Are you in your 30s and living with roommates to save money? We want to chat with you for our personal finance podcast Stress Test. E-mail astafford@globeandmail.com.
Tools, explainers, guides and charts
Best bank accounts for kids. Nothing to get too excited about, unfortunately. Banks don’t seem interested in competing in this category.
The Money-Free Zone
Magic Powers by Death Valley Girls is your basic hook monster of a power-pop song. In other words, a blast.
Watch this
Math educator Vanessa Vakharia on how to buck up your kids to help them do well in math class. I did a Q&A with Ms. Vakharia recently on “girl math.”
On social media
Truth: There’s no trophy for the largest TFSA when you die.
What I’ve been working on
- Lower interest rates for investors? It’s already happening
- A playbook for debt and investing as we look ahead to a U-turn for interest rates
- Hiding in plain sight amid all the harsh financial news is a stunning run for stocks
More Rob Carrick and money coverage
Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Even more coverage from Rob Carrick:
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- ✔️ The housing file: A house isn’t special. Get your head straight about the reality of home ownership • The good, the sad and the unaffordable: Saving for a home down payment in Canada’s big cities • Property taxes are popping in some cities – how worried should you be about other tax hikes? • Our other real-estate problem – people have too much wealth tied up in houses • Borrowers and savers, here’s how to time the eventual rollback of interest rates
- 📈 Investing: Canada's top digital broker is TD Direct Investing, with an assist from the TD Easy Trade app • 2023 Globe and Mail ETF buyer's guide part one: Canadian equity ETFs • For the ultimate in cheap investing, check out the Freedom .08 ETF Portfolio • Yes, there is risk in Canadian bank deposits for the unwary and complacent • CDIC covers bank deposits, but who protects your investments if your broker goes bust? • Answers to your questions about the low-risk ETF paying almost 5% • Happy fifth birthday to one of the all-time best investing products for everyday people • An investing strategy that wins cleanly over the long term by outperforming in bad years like 2022
- 💰 Your money: Mortgage holders, savers and GIC investors, it’s time to change your thinking on interest rates • How much debt is each generation of Canadians carrying, and how do you compare? • For the sake of their financial futures, young people should leave Toronto and Vancouver • This practical new spin on a savings account might just peel you away from your big bank • Rental fraud grows amid rise in fake, falsified tenant applications • Are Canadians worse off financially now than in the 1980s? • From groceries to auto loans, here’s how much more it costs to live right now • When saving for retirement, should you change your asset mix over the course of your career? • Do retirement income needs always rise alongside inflation? Not necessarily • When the bank suggests you lock in your variable rate mortgage, it has an angle
