The Benefits of Hoarding

Image result for stockpiling

Ok, so this title is a bit on the click bait side of things.  But still, there is an interesting point here.  There is good hoarding and bad hoarding.

Bad Hoarding:

  • Collecting ( with limited exceptions).  In general, collections are pretty much worthless — at least from a value perspective.  They can take up a lot of space, often have very little value ( or much less value than you think) and often are not organized well and have the ability to turn into straight clutter.  Maybe if you have a small collection of valuable coins.  Or you’re rich enough to have a vintage car collection in a special garage.  Even then, it seems like a bit of a fragile activity or at least neutral.
  • Saving useless things like broken toys, newspapers, or old electronics Not much explanation needed here.  If it’s worthless, there’s no sense in having it.  This the mental illness type of stuff.
  • Old clothes.  I feel like most of us a are a bit guilty with this one to some degree.  But it’s pretty obvious that if clothes are so out of style, never did fit well, or that you don’t love, there’s no good reason to hold on to them and take up storage space that could be put to better use in your house — and who someone else could probably really use.
  • Things that are only nostalgic but have no value.  Of course, within reason.  Some pictures of friends and family… A few special pieces of artwork that your kids did in school.  These are good — and healthy to have.  However, there’s a fine line between that and not being able to throw out any of the stuffed animals your kids had, even though no one ever plays with them and they are gross and tattered.   Or that box full of about 500  tattered Sports Illustrated magazines from 30 years ago, that no one has looked at since.

Good Hoarding

  • Saving money.  This is pretty obvious — but maybe not so much.  Having a larger portion of your wealth in straight-up cash, rather than putting your money in stocks, bonds, property, etc. is a good idea.
    • it’s good to have a rainy day fund for crisis.  Times when you really need to have access money – quickly.
    • Other buying opportunities.  Being anti-fragile means being able to pounce on  opportunities.  It might seems counter-intuitive at first to keep extra cash, when you could be investing in the stock market.  But for one thing, the stock market has it’s own set of risks.  And secondly,  you’ll be wealthier in the long run if you have the ability to be able to make a quick pivot and invest in the next Tesla, Apple, or hot piece of property when the timing is exactly right
  • Stockpiling.  This is about organized saving of things that you could really need in the future.  Wood, canned food, bullets, nails, screws, etc.
  • Extras. Having extras of useful things is important at the very least and is definitely a stress reducer.  When you have extras of important things like scissors, screwdrivers, flashlights, tape, batteries, and iPhone chargers, you allow yourself the opportunity to be productive even in those times when you can’t locate the original
  • Backup plans.  If you can hoard other things why not backup plans?  The more options the better. Always be thinking of a plan b, c, or d.  And especially be conscious of a worst case scenario plan.  Visualize how you will be successful or happy regardless.  Examples
    • bad weather contingency for a wedding
    • different routes or modes of transportation for getting to an important event
    • visualizing how you could be better off if your relationship crumbles. Or if he/she says no.
    • How you’d be more successful or happier if you get fired from your job (or don’t get the job you want)