Ringing in the New Year with Storage Auction Tips

happy-new-year-622149_960_720w2Saving money and spending less is among the most common resolutions made for the New Year. Unfortunately, though, it's estimated that only 39% of people in their 20s and 14% of people in their 50s and older actually achieve their New Year's resolution. Whether you're looking to earn some cash on the side or embark on a new career, participating in storage auctions can help you achieve your financial goals for 2016.

Treat it Like a Business

Even if you only plan on participating in a few storage auctions per month, it's recommended that you treat it like a business. This means separating your business expenses from your personal expenses, as well as keeping track of how much income you earn. If you rent a truck to haul off items acquired through auction, for instance, you should keep the rental receipt so it can be counted as a tax deduction. And income you earn through storage auctions should be counted as income on your taxes. Of course, you could consult with a tax professional or certified accountant for more information on how to run a business.

Don't Bid on Every Unit

As a newcomer, you may feel inclined to bid on every storage unit up for auction. After all, that's the only way you're going to make money in this business. You have to realize, however, that not every storage unit is going to contain valuables. On the contrary, many will contain nothing more than empty boxes and debris. So if you're hoping to create sustainable source of income, you should base your bids only on what you can see. Once the auctioneer cuts the lock, look inside and begin to add up the value of the items that you can see. You should bid no more than this amount, allowing someone else to take it if they bid higher.

Know Where and How to Resell

Acquiring items through storage auctions is only half the battle. The other half is finding a person (or company) to purchase them. Sure, you may come across some items that you wish to keep, but if you're doing this to earn money, you'll want to resell most, if not all, of the items you acquire. So, where can you sell your items? There are dozens of possibilities, ranging from starting your own retail store/shop, to selling them on websites like eBay and Craigslist. You can even contact special collectors and dealers to see if they are willing to purchase your items.

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