Can Hoarding Give The Best Return On Investment?
Can Hoarding Give The Best Return On Investment?
Lets start by saying I don’t mean this type of hoarding. This stuff is messed up. Its garbage, makes the house non functional, hides dead cats and generally stinks. I’m sure we have all seen a episode of Hoarder’s on t.v and said wow. Soon after we start cleaning out our junk drawers, throwing out the socks with holes in them and starting to throw items on kijii or craigslist.
Im Talking about hoarding the “Good Stuff”, The stuff you use all the time in your life that are currently on sale! I’m not saying to stock up on 5 Coach’s because The Brick says they are on sale though. Its the little daily things, that don’t cost much but do add up! Let’s give an example.
So Fresh, So Clean??
I personally use dove body wash it retails normally for like 5 bucks, but once in awhile Walmart will have it for 3 Dollars. When I see that I like to buy like 5 of them. Now I dunno exactly how often I go through each bottle but lets say every 3 weeks. So the 5 bottle’s last roughly 4 months. Lets calculate the return I made by buying on sale in bulk, in less than 4 months.
$5.00 x 5 = $25.00 x 1.13% (13% tax) = $28.25
$3.00 x 5 = $15.00 x 1.13% = $16.95
$28.25 – $16.95 = $11.30 savings, which is 40% off the original price.
Based on these numbers and me averaging 4 months of showers with 5 bottles, we achieve a 40% rate of return in 4 months! Of course if we get a year supply at 3 bucks we would get the same results of 40% in one year. The only factor is, will that dove body wash still be 5 bucks at the end of the year? Probably not, prices generally keep going up. This would boost up your return even more.
I used to go to my in laws and wonder why they had like 50-100 boxes of Colgate in their bathroom. That would take forever to use. Well clearly they were smart about it and since that purchase will last soooooo long their return on their original investment must be massive. Either that or they brush their teeth way to much!
Sometimes there are some huge sales, and we all need to take advantage! Recently we went to get some diapers and while they normally were 30 bucks, this week they were 20! I dunno how long she will be in size 2 diapers, so we only bought 3. At almost $35 saved $10×3 plus taxes. That’s a bunch of free diapers compared to the regular price.
Last week Cans of Tuna(they are the thicker cans) which retail for 1.50-2 per can , were on sale for 84 cents each. We eat tuna once in awhile in tuna sandwiches. Anyways I bought a case, 48 cans! A huge savings rate or rate of return on that money. Buying all this tuna will also force us to eat healthier as well, another great bonus.
I’m sure you know or heard of Mark Cuban, Shark Tank investor, Billionaire and owner of the Dallas Maveric’s. If you read about him, he’s a frugal guy or was at least. While he was in going to school he had a cramped apartment with some roommates and stresses that people in their 20’s should be paying off their credit card debt, student loans etc. He also highly recommends people buying a lot of stuff when its on sale, stating its one of the easiest returns you can get!
There is no question or debate about buying stuff in bulk while its on sale. I have never bought 50-100 boxes of colgate at one time though! Maybe its time I did. In the past I didn’t want to have a huge surplus of supplies in the house, considering it hoarding. Obviously by looking at it a little closer lately, I realize its probably a good idea!
These savings equal a fantastic rate of return on your money. I maybe have got lucky with one or 2 stocks that returned 40% in 4 months. It is a rarity though and most of my investments certainly haven’t! Once you make the purchase you have instantly locked in that return. Which means anyone can get massive returns on investment easily! Download the flipp app on your phone, start price matching and saving your money!
Do you got any other shopping apps? Have you been hoarding? Or got any good tuna recipes?
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.
Great post (aside from making us picture you in the shower :P)
I tend to buy multiples of certain things when they are on sale – basically things that i KNOW we will use – and things that don’t expire. I don’t take it to the hoarding extreme….but I usually have a couple extra sticks of deodorant, 5-10 boxes of juice in the pantry, a few tubes of toothpaste etc…
Thanks, I guess.. My shower body is actually pretty nice and the dove creates a nice lather. It really brings out my eyes?
Nice that you have been doing this as well. Deoderant I always have been doing as well. Got to keep a stockpile of that.
Ive never done the juice thing. Got to start stockpiling.
I do the same! If it’s on sale and I know I’ll use it, I’ll stock up! As long as I don’t go through it quicker because I know I have more, then we are all good, I think.
I’m absolutely a huge fan of stocking up on items we know we will keep using for years. I probably get more excited when I see 50% off paper towel (staple item with kids!) than when I find an awesome stock investment! It’s guaranteed returns!
Haha its funny as we age what we tend to get excited about now!
Rob, I’m guilty of over buying when consumable stuff is on sale at WalMart. It’s a balance. You don’t want to tie up to much cash in inventory. I think they call it optimizing the economic order quantity in supply chain management. Whatever that means? 🙂 Tom
Wow pretty impressive you knew what the term is called.
The more you know…..
I love sales too. But, will avoid the buy two get one half off things though. I love having enough shampoo, soap and paper towels in my house. I buy Colgate more than two when I see them on sale. Tuna and sardines are nice to have too.
Yeah the buy 2 get one half off aint that exciting. I guess it works for some people though.
Getting items in bulk does reduce cost. We do most of our shopping at BJ’s Wholesale Club Inc. But, we don’t get things just because they are on sale. Even if it means buy one get one free 🙂
So true just because a car is marked up 1000 to say its a sale and take 1000 bucks off doesnt make it a deal.