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(From the Financial Literacy Blog) – According to Yahoo Finance, 78% of households participate in some form of spring cleaning in a traditional year. After a long winter, clutter in peoples’ homes or apartments can build up. Spring cleaning has long been a tradition––serving as an opportunity to find lost items, increase productivity, and get rid of no longer needed inventory. Additionally, to make the most of the tradition, people can cash in on their spring cleaning efforts by selling unwanted items. Here is how someone can make money and protect their finances while doing so.
Decide What to Sell
When spring cleaning, someone may find a number of items they could sell. However, it’s important that people have truly thought things through before listing something for sale. Items traditionally sell for less than what they would cost in-store. If someone makes a sale on an item, but later learns they ended up needing it, they’ll have to buy it again––often times for MSRP (manufacturer’s suggested retail price). In the long run, they may have to spend more reacquiring the item than they earned on their sale. Instead, people should set aside items they’re thinking about selling. If they haven’t used the item after 30 days, they can list it.
Make a Listing
After determining what they can sell following their spring cleaning efforts, they need to determine how they want to sell the items.
Print Publications
The classified section of local newspapers and publications such as Uncle Henry’s are great places to list items for sale. As an added bonus, in our digital age, most print publications also have online channels that complement the print version.
Online – Local Delivery
If someone wants to sell locally to avoid shipping costs or electronic payment methods, they can list the item on websites like Craigslist, OfferUp, or on Facebook Marketplace. Once a sale is agreed upon, a meet can be scheduled.
Online – Ship Anywhere
If someone would prefer to sell online to avoid having to meet anyone in person, they can list the item on websites like Etsy, Amazon, eBay. When selling online, sellers should be prepared to pay for shipping, insurance on the package, and seller fees. Amazon takes 15% of the final sale cost, eBay takes 10%, and Etsy takes 5%.
Regardless of where an item is listed, there are some best practices to increase the chance of making a sale. The seller should take clear pictures of the item from all angles, write an easy-to-read description, and price the item competitively.
Donate
If someone wants to feel good about where they get rid of their unwanted belongings, they can donate them to a charity of their choice. While giving to those in need feels good, it can also benefit the person donating during tax season. If the charity is tax-exempt, the donation can reduce one’s taxable income. In short, reducing someone’s taxable income reduces the amount they’ll owe in taxes. Before making a donation, people should ask the nonprofit or charity if they’re a tax-exempt organization. People can also look this up themselves using the Tax Exempt Organization search on the IRS website. To ensure someone can reduce their taxable income, they should request a receipt with the estimated value of the items at the time of the donation.
Safeguard the Sale
Regardless of whether someone decides to sell locally or online, protecting their finances and general well-being should be a top priority.
If selling locally, the seller should avoid sharing personal information with a prospective buyer. Beyond the email address or phone number that someone is using as a communication method, no more information should be shared. There is no reason for someone to share their checking account number, date of birth, or address. If the buyer is making small talk, people should be cognizant of what details they reveal. Those details could potentially be the answers to security questions when accessing financial accounts.
Additionally, cash is much safer to accept than a check, as the check could bounce––leaving the seller on the hook for any fees and the now unpaid-for item. Sellers should always meet in a public place and bring a friend or family member with them if they can.
If selling online, a lot of the same advice applies. To protect themselves during an online sale, people should never give away credentials to payment accounts like PayPal, Zelle, or Venmo. Further, people should never ship out the item before the payment has been processed.
Learn More On Our Blog
Spring cleaning can be a great opportunity to turn unwanted items into cash, but it’s important that people stay diligent and protect themselves throughout the process. For more on spring cleaning one’s finances, check out our blog here. To learn about how you can sell your goods on consignment, refer to this blog.