Give Smart

Here's a unique perspective from Suze Orman on garage sales versus giving:

Financially speaking, I can't make any sense out of garage sales. You have to invest a lot of time to hold one, when you could simply take all your unwanted stuff down to the local charity (or even ask them to come cart it away for you) and claim the donation as a tax deduction. Do you really want to spend a weekend holding a garage sale-with no guarantee you will clear out everything you don't want-when you can spend an hour or two gathering up your stuff and making a donation whose tax value will likely exceed the value of your garage sale's proceeds?

She has a point. I do like garage sales but also realize that there's a value to your time and if you're not making much money for a big time commitment, that's not a good deal. (In fact, you could give away your items and "give away" the time you save as well).

Where's the balance? You'll need to do the math. What will you make in profit from the garage sale and what will it cost you in time versus what you make (in tax savings) by giving away the items and what time you'll save? The value of your time is subjective, so you won't get a clear answer, but this method should get you close.

Comments

[SMB]

I tend to agree with Suze, though I'm glad many people obviously don't--I've gotten many a good deal at a garage sale. :)

[Dan]

I also agree with Suze on this one. However, my wife loves the social aspects of the garage sale. We live in a small town and she will sit out there all day and have people stop over. Personally, I don't like people going through my stuff, even though I really don't want it any more.

[MCMA]

I don't know if Suze has actually been a yard sale but if she has she probably didn't notice that many of the people holding a yard sale aren't exactly in the upper tax bracket and thus most likely wouldn't receive much if any tax benefit from their meager goods. Maybe this is why you don't often see yard sales in the better neighborhoods?

[fivecentnickel.com]

In the past we've cleared somewhere around $500-$1000 for a days work. Not bad at all, and certainly better than we would have made in terms of tax deductions -- then again, we've been in a pretty low tax bracket in the past. Another suggestion would be to high-grade and sell the most valuable items on eBay, and donate the rest.

[mbhunter]

I like setting up garage sales. Money in hand is better than the promise of Uncle Sam not taking quite so much money later. You can't earn interest on promises.

It's also a safe "laboratory" for testing salesmanship, presentation, and negotiation for anyone who has even a little bit of an entrepreneurial streak. The garage sale might bring in only a few dollars, but it's practice for setting up a bigger business, and you can work out some of the kinks in your selling and negotiation style by hosting a garage sale. Plus, you get to see the tricks that other people use when they negotiate with you. It makes you a stronger buyer at other garage sales.

[Heather]

fivecentnickel,
I really like your perspective on garage sales. I will keep this in mind for my children. I home school and this would certainly be a great lesson for them and me too.
Have a blessed day!
Jeremiah 29:11
"For I know the plans I have for you,
declares the Lord."