Skimm Money: Cash In on Your Clutter

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How the news affects your finances.

Cash In on Your Clutter

Think of Facebook Marketplace, Poshmark, and all those other resale sites as givers of second (and maybe third) chances — even for the items you’d never think deserve one like a rickety ladder that sparked “complete mayhem” or the used mechanical pencil viewed by more than 1,000 people in the TikTok Shop.

Anyone who’s built an income stream from off-loading their extra stuff knows there’s an art to listing and selling your belongings. If you’re just looking to cash in while decluttering, use these tips to streamline your selling strategy, lighten your home’s load, and fatten your wallet. 

Your Move:

• Pick your platform. Electronics, exercise equipment, and brand-name clothes are all in demand. Beyond catchalls like eBay and FB Marketplace, there are niche platforms — Depop for clothes, The RealReal for designer goods. Kaiyo and AptDeco for furniture finds from popular brands. 

• Details matter. Photos should be well lit, items should be clean, and descriptions should be clear and use keywords. EX: A listing for a TV console should also have the words “credenza” and “entertainment center” within it.

• Know the market. Browse listings of comparable items so you can see write-ups and photos, says Brenda Scott, a professional organizer and owner of Tidy My Space. Read the comments section for customer feedback, and know what price others are asking for (and getting), she says. 

• Negotiate. Haggling is a part of the process on many resale platforms. (See: One potential buyer who wanted a used bookcase only if it came with the seller’s books.) No bites after a week? Lower your price or bundle items (i.e. offer a nightstand and a lamp combo for a small discount if purchased together) to sweeten the deal.

We asked you to vote on a question you’d like answered. The winner was:

What’s the difference between a home equity loan and a HELOC?

FEATURED EXPERT:

Emily Boothroyd

Certified Financial Planner®, partner and wealth manager at Merit Financial Advisors in Wilton, CT

Both are types of loans that allow you to tap into your home’s equity, but they work differently, says Emily Boothroyd, a CFP and wealth manager at Merit Financial Advisors. A home equity loan is a lump-sum loan with a fixed interest rate and a set repayment schedule. A home equity line of credit (HELOC) functions more like a credit card, with a line of credit that you can utilize as needed and pay back, with most having a fixed interest rate.

“Home equity loans and HELOCs are great ways to fund projects or purchases when the terms of the loans match your goals,” says Boothroyd. (Consider interest rates, other investments, and your overall financial health.) “If you need a ‘bridge’ solution in order to fund a project, then a HELOC may be a good way to go, since you only borrow what you need when you need it and can often repay it quickly and have less concern about interest rate fluctuations because it’s a short-term loan,” she says.

A recent survey found that just 45% of US adults aged 18–34 are financially independent from their parents. Student loan debt, surging food prices, and soaring rent prices aren’t exactly helping. 

If you want to give your kids a head start towards financial independence, check out the kids’ investment account from Fabric by Gerber Life. Contribute as little as $1/day and watch the money grow with them. You can also use it for current expenses like tutoring, summer camps, or child care. Oh, and the account is all theirs when they become adults. Psst…Skimm’rs get $20 when they sign up. Future you says thanks.^†

One act of financial self-care you can do in five minutes.

Set up a POD or TOD

You’ve already made a will (right?), but if the worst were to happen, would your loved ones be able to access your bank account and investments? Without a POD (payable on death) or a TOD (transfer on death) set up, those funds could be frozen and require a lengthy, costly probate process for anyone to get in. You can bypass this by signing a beneficiary form, often found online, for your bank or brokerage. This typically ensures any beneficiaries are able to use or move money from your accounts freely.